If you own a home in Montgomery County, you should have recently received your latest real estate tax assessment from the State Department of Assessments and Taxation (SDAT). We often receive questions about these assessments, so are sharing some information and perspective that is hopefully helpful to you as you review your assessment.
Here are a few key pieces of information to know:
- The SDAT releases new property assessments every three years. The new term begins on July 1, 2023, and assessments were mailed to homeowners in December 2022.
- This year, many owners noted significant increases in their assessments. While we can’t speak specifically to the state’s assessment methods and process, it’s important to keep in mind market context when evaluating your assessment.
- To provide some perspective, over the last three years, average single-family home prices in Bethesda, MD have gone from $942,259 in July 2019 to $1,216,695 in July 2022, representing an increase of $274,436. While this doesn’t address the state’s specific assessments, it is anecdotal in order to illustrate the value increases we’ve seen in the D.C. metro area market over the last few years, likely reflected in the state’s assessments.
- If you do not agree with your assessment for July 2023, you can appeal to the Maryland Property Tax Assessment Appeals Boards, 410-767-1199. If you plan to appeal, we suggest you first reach out to the Appeals Board and review their FAQ page. It’s important to remember that you, the property owner, have the burden of proof when it comes to tax assessment appeals.
The Maryland Homestead Tax Credit
This tax credit was established to help Maryland homeowners deal with large assessment increases on their principal residents by limiting the increase in taxable assessments each year to a fixed percentage. Please note that you must apply by May 1 to be eligible for the Homestead Tax Credit. You can read more about the benefits and process for application here.
As always, the Carolyn Homes Team is here to support you in all of your real estate needs! If you have questions about your tax assessment, property value, or would like to discuss the appeal process or Maryland tax credit opportunities in more detail, we encourage you to contact us!