Real Property Tax Information
Types of Taxes Billed
Tax Rate Schedule
When Taxes Are Due
How to Pay Taxes
Mortgage Information
Tax Credits
Important!! New State Application Process for Homestead Tax Credit
Senior Tax Credit - 2008 Application Now Available
Homeowner's Property Tax Credit
Tax Deferrals
State Assessments
Change of Address
General County Real Property Tax:
This tax is levied on all property in the County and funds, in part, such basic services as education, public safety, public works, and community services.
State Real Property Tax:
This tax is levied by the State of Maryland, but collected by Howard County and is used for the payment of principal and interest on State bonds.
Fire Tax:
Howard County has 2 fire districts – a metropolitan district and a rural district that charge different rates. Howard County law states that the revenues generated by the fire tax are to be used for all fires and emergencies occurring in the district where the tax is collected. However, there are no district restrictions, nor should there be, on where stations and personnel respond to calls.
Trash Fees:
An annual fee of $175 per household is charged to offset the cost of collection and disposal of residential trash. Low income homeowners may qualify for a credit of up to $100 against the Trash Fee. Call the Community Action Council (410-313-6440) for more information. The deadline for filing is September 1 of each tax year. Some communities, such as condominium complexes, may privately contract for trash collection and disposal and are, therefore, not subject to this fee.
Water and Sewer Charges:
An ad valorem charge is levied on real property located within the Metropolitan District. Ad valorem charges are primarily used to fund the cost of new construction and/or replacement of the water and sewer system's infrastructure and may be used for operation costs as well. The special ad valorem charge for real property in the Middle Patuxent Drainage Subdivision has been repealed and will no longer be charged, effective July 1, 2006.
Front Foot Charge
All owners of properties located on a street, road, lane, alley or right-of-way in which a water or sewer main exists, pay an annual front foot benefit assessment charge.
State Bay Restoration Fee
The Maryland State Government enacted the State Bay Restoration Fund in 2004. Howard County is required to bill users of private septic systems a fee of $7.50 per quarter for a single residential dwelling. For the tax year beginning July 1, 2005, the Howard County Tax Bill will include the $22.50 State Bay Restoration Fee for users of private septic systems. In 2006, that fee will be an annual $30.00 charge. For additional information please visit the Maryland Department of the Environment web site at www.mde.state.md.us. For billing questions, please call 410-313-4076.
How the Tax Rate is Determined
The real property tax rate, which is set each year by the County Council, is applied to the assessed value of the property. Real property tax is levied annually on all taxable land and improvements.
Levy Type County Tax |
Rate per $100 assessment $1.014 $0.112 $0.1255 $0.1055 $0.08 |
All taxpayers living in their principal residence pay their real property tax bills on a semi-annual schedule unless they opt out of the semi-annual scheduled by making an annual payment by September 30th. Taxpayers who are principal residents will receive a tax bill that will permit them to pay on either a semiannual or annual basis. Taxpayers who escrow their tax payments may choose to pay annually, but must notify their lenders by May 1st of their intent to pay annually.
Annual bills and the first installments of semiannual bills are due on or before September 30th and become delinquent on October 1st. Howard County allows a ˝ percent discount on the General County Real Property Tax paid in the month of July. The second semiannual installment is due on or before December 31st and becomes delinquent January 1st.
Delinquent taxes are subject to interest and penalty at the rate of 1.5% per month on all County taxes and fees and 1.0% on State taxes. Interest and penalties are applied to the amount levied net of any credits.
Taxes which remain delinquent on March 1 of each year receive a final legal notice. Additional penalties are imposed on April 1 of each year and payments made after this date must be in the form of cash, certified check, or credit card. Delinquent taxes will result in the sale of the property tax lien through public Tax Sale.
Taxpayers have seven options for paying their property taxes.
- Taxpayers can arrange to have their taxes paid by their mortgage company from an escrow account.
- Taxpayers should mail their check or money order made payable to Director of Finance along with their payment coupon to Howard County Maryland, PO Box 37237, Baltimore, MD 21297-3237.
- If taxpayers do not have a payment coupon, they can pay by check or money order made payable to Director of Finance mailed to Howard County Maryland, PO Box 3370, Ellicott City MD 21041-3370.
- For a fee taxpayers can pay by credit card (VISA, Master Card, American Express, or Discover) on line (click here). See note below.
- Taxpayers can also pay over the telephone using a credit card (VISA, Master Card, American Express, or Discover) by calling 1-800-272-9829. Use jurisdiction code 3001. See note below.
- Taxpayers can pay in person at the Department of Finance, Cashier’s Office on the 2nd floor of the George Howard Building, 3430 Court House Drive, Ellicott City, MD. The office is open Monday – Friday from 8:00 AM to 5:00 PM except for Howard County Government holidays. Payments in person can be made by cash, check, money order, or Discover card. See note below.
- Taxpayers can also use the drop box at the front door to the George Howard Building to deposit their payments. Payment left in the drop box should be in the form of check or money order. Drop box payments will be processed effective the next County business day.
PLEASE NOTE: Payments made by credit card are assessed a convenience fee. This fee is levied by the Credit Card processor and cannot be waived by Howard County.
Payments made via the website or over the phone are charged with a convenience fee that varies with the amount of the charges. For example, a payment of $2,000.00 carries a $68.00 charge while a payment of $3,500.00 carries a $109.00 charge. See payment website for exact convenience fee for your payment amount.
Payments made in person using the Discover Card are subject to the following fee schedule:
| Payment Amount $0.00 to $500.00 $500.01 to $1,000.00 $1,000.01 to $2,000.00 $2,000.01 to $3,000.00 $3,000.01 and up |
Discover Card Fee $5.00 $12.00 $24.00 $38.00 $48.00 |
All taxpayers in Howard County receive an original tax bill and are responsible for ensuring that their taxes are paid on time. Howard County also provides a full listing of taxes due on all properties in the County to mortgage companies who request it. These mortgage companies will match the properties for which they hold escrow accounts and make payment to the County. These payments are made effective July 31 (1st installment semiannual and annual) and December 31st (2nd installment semiannual), but may not be posted until early the following month because of the volume of payments at that time.
Property owners may wish to contact their lender to ensure that the lender retrieved the tax bill and has included that bill in the payment process. If the lender does not have the correct billing information, you should forward a copy of your bill to your lender.
Refinancing
If you are refinancing your mortgage around the due dates for property taxes, you should take care that the taxes are not paid by both lenders or by the lender and the title company at settlement. Be sure to notify the old mortgage company well in advance of settlement that you are closing the escrow account and advise them not to make payment if payment will be made at settlement.
Important!! New State Application Process for Homestead Tax Credit
The Homestead Tax Credits are provided by both the State and County to limit the annual increase in taxable assessment on owner-occupied residential property. County Assessment increases are limited to 5% per year and State Assessment increases are limited to 10% per year.
What is this new application process?
As of January 1, 2008, the State will be implementing a new APPLICATION PROCESS for these credits. The implementation will be over a period extending to December 31, 2012. You will not have to apply for this credit every year.
When do I have to apply?
If your property is scheduled for reassessment in January 2008, your assessment packet will include an application for the Homestead Tax Credit. In order to continue to receive this credit, your application must be returned to the State by April 1, 2008.
If your property is scheduled for reassessment in January 2009, your assessment packet will include an application for the Homestead Tax Credit. In order to continue to receive this credit, your application must be returned to the State by April 1, 2009.
If your property is scheduled for reassessment in January 2010, your assessment packet will include an application for the Homestead Tax Credit. In order to continue to receive this credit, your application must be returned to the State by April 1, 2010.
Click here to find your Assessment Schedule.
If you purchase a new home in Howard County, the application will be mailed to you within six months of your purchase.
How do I apply?
There are a number of ways to apply.
- Complete the application found in your assessment package and return it in the postage paid envelope provided to Department of Assessments and Taxation, 301 W. Preston St., 8th Floor, Baltimore, MD 21201.
- Complete the application found on the State's website at www.dat.state.md.us, using the Access Code provided in your assessment package and submit it online.
- Complete the application found on the State's website at www.dat.state.md.us, print it, and mail to Department of Assessments and Taxation, 301 W. Preston St., 8th Floor, Baltimore, MD 21201.
- Download a blank application found on the State's website at www.dat.state.md.us, print it, complete it by hand, and mail to Department of Assessments and Taxation, 301 W. Preston St., 8th Floor, Baltimore, MD 21201.
- Call SDAT at 410-767-2165 or 1-866-650-8783 if you need to have an application mailed to you.
What happens if I don't apply?
If you don't apply, you will lose your Homestead Tax Credit. In Howard County, for FY08 the average County Homestead Credit was over $1,100.00. If you lose your Homestead Credit because you fail to apply in a timely manner, your credit will not be granted retroactively, although you will be able to get the credit in the future once the application is complete.
I have questions, who do I call?
The State of Maryland has set up a hotline at 410-767-2165 or 1-866-650-8783. Even though Howard County is funding these credits, the State Department of Assessments and Taxation is responsible for identifying those properties eligible for these credits. All questions regarding the application process should be directed to them.
Senior Tax Credit - 2008 Application Now Available
A County Tax credit is available for homeowners who are at least 70 years old and have a combined household income that does not exceed 500% of the Federal poverty guidelines for a household of 2. For Tax year 2008, that limit is $70,000.
The combined net worth of the household must not exceed $500,000. Net worth means, after deducting outstanding liabilities, the sum of the current market value of all assets including real property, cash, savings accounts, bonds, and other investments; but not including the dwelling for which a property tax credit is sought, the cash value of any life insurance policies on the life of the homeowner, and tangible personal property.
The amount of credit is 25% of the County property tax due in the current year after applying the Homestead Credit authorized under 9-105 of the Tax Property Tax Article of the Annotated Code of Maryland. The amount of the credit shall be calculated after all other credits granted for the property have been applied. Applicants for the Senior Tax Credit are required to apply for all other credits that may be available for that property.
To complete the application, click on the link below. You must save a copy of the application to your computer. Close the internet. Open the saved file on your computer, fill in the required information, print the form, sign it and mail it to the Howard County Department of Finance per the instructions on the application.
Click here to download application.
Click here to download Frequently Asked Questions.
Homeowner's Property Tax Credit
Maryland’s Homeowner’s Property Tax Credit program is administered by the State and granted to eligible homeowners of all ages. The program provides tax credits for homeowners who meet certain household income and net worth limits.
Beginning in Tax Year 2006 (July 1, 2006), the following changes were made which will make this credit available to more taxpayers and will increase the total amount of the credit for those who qualified in the past.
1) The calculation of the credit has changed so that eligible maximum household income to qualify has increased to $55,000.
2) The maximum assessment to which the credit applies has increased from $150,000 to $300,000.
3) The cash value of any qualified retirement plan or individual retirement account no longer is considered in the Net Worth calculation for the purpose of eligibility for the credit.
You may qualify for a tax credit if your property taxes exceed the amounts shown in the following table:
| Annual Gross Income: $ 8,000 $ 9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 $17,000 $18,000 $19,000 $20,000 $21,000 $22,000 $23,000 $24,000 $25,000 $26,000 $27,000 $28,000 $29,000 $30,000 $31,000 $32,000 $33,000 $34,000 $35,000 $36,000 $37,000 $38,000 $39,000 $40,000 $41,000 $42,000 $43,000 $44,000 $45,000 $46,000 $47,000 $48,000 $49,000 $50,000 $51,000 $52,000 $53,000 $54,000 $55,000 $56,000 $57,000 $58,000 $59,000 $60,000 |
Property Taxes on the first $300,000 of assessed value that exceed: $ 0 $ 10 $ 20 $ 30 $ 40 $ 85 $ 130 $ 175 $ 220 $ 285 $ 350 $ 415 $ 480 $ 545 $ 610 $ 675 $ 740 $ 820 $ 900 $ 980 $1,060 $1,140 $1,220 $1,300 $1,380 $1,465 $1,550 $1,635 $1,720 $1,805 $1,890 $1,975 $2,580 $2,670 $2,760 $2,850 $2,940 $3,030 $3,120 $3,210 $3,300 $3,390 $3,480 $3,570 $3,660 $3,750 $3,840 $3,930 $4,020 $4,110 $4,200 $4,290 $4,380 |
To receive the County and/or State Homeowner's Credit, you must file an application before September 1st. To apply for both homeowners credits you only need to file the State Homeowner Credit Application.
For more info and to download an application, visit their website at SDAT Property Tax Credits or call 410-767-4433.
Homeowner’s Credits are displayed on the tax bills. The amount of the credit will appear on the bill and reduces the tax amount due. If the credit is issued after the taxes are paid, a refund will automatically be made to the taxpayer. If you are anticipating a tax credit, but it has not been granted as of the due date of your taxes, pay the taxes in full to avoid interest and penalties.
Exemptions
The State of Maryland provides for exemptions including those for disabled veterans and blind persons. More information is available at SDAT Tax Credits.
Energy Conservation Credits
For Homeowners:
Energy Device Conservation Credit
The Energy Device Conservation Credit is designed to provide a tax credit for homeowners installing new heating, hot water or electric generation systems using alternative energy source, such as solar or geothermal. Applications are due by April 1 each year to receive a credit for the following July 1. Work must be completed within the 12 month period prior to the application. The County will only grant $250,000 in such credits each year. Credits will be granted in the order received and if the limit is reached in any year, applications will be carried over to the following year in the order in which they were received. For more information call 410-313-4075.
Click here to download Energy Conservation Devices Tax Credit.
For Businesses:
High Performance Building Credit
High Performance Buildings are those that receive at least a Silver rating according to the U.S. Green Building Council's LEED (Leadership in Energy and Environmental Design) rating system. Tax Credits will be granted against the County Tax imposed on the building as follows:
Core and Shell or New Construction (for five years)
| LEED Silver Certification LEED Gold Certification LEED Platinum Certification |
25% 50% 75% |
Existing Building (for three years)
| LEED Silver Certification LEED Gold Certification LEED Platinum Certification |
10% 25% 50% |
For more information on the credit call 410-313-4075.
Click here to download High Performance Building Tax Credit
Green Building
Those buildings that do not meet the criteria for the High Performance Building Credit, may be able to receive a credit under our Green Building Tax Credit program. This credit is a percentage of the amount spent to install an energy conservation device in a LEED certified building for a period of three years. The credit may not exceed the amount of the County taxes owed on the building.
| LEED Certification LEED Silver Certification LEED Gold Certification LEED Platinum Certification |
14% 16% 18% 20% |
For more information, call 410-313-4075.
Other County Credits
Howard County provides tax credits for the following. For more information click on the appropriate credit below or call 410-313-4075.
Surviving spouse of fallen law enforcement or rescue workers
Property leased or occupied by a religious group
Renovation of Historic Property
Sprinkler System in historic building
Commercial or Industrial businesses
Amatuer Sports Athletic Fields
Tax Deferral Program for Elderly or Disabled Homeowners A new tax deferral program is now available that will allow qualifying homeowners the option of deferring that protion of county property tax currently due which is in excess of the county property tax paid the previous year. To be eligible for the deferral homeowners must be:
1) 65 years of age or older OR permanently and totally disabled
2) AND have an annual income of $75,000 or less
3) AND have resided in the current dwelling for at least 5 consecutive years.
For instructions and forms, click here.
The State Department of Assessments and Taxation (SDAT) determines the taxable assessment of your real property. The taxable assessment equals the full cash value, determined by the Assessor’s Office. It is important to verify any assessment notices received from SDAT for accuracy. Assessments may be appealed.
Online assessment information is available at SDAT.
Anyone desiring more precise details about an assessment, or the appeal process, should call SDAT at 410-480-7940 or visit its website at www.dat.state.md.us.
In Maryland, SDAT is the official central file of all addresses relative to State and County taxes. If you wish to change your address, you must notify SDAT. We have provided a Change of Address Form for your convenience. Please mail the form to:
Supervisor of Assessments and Taxation
Howard County Office
District Court Multi-Service Center
3451 Courthouse Drive
Ellicott City MD 21043
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