BALTIMORE — Maryland businesses and homeowners could see their property taxes rise yet again in the new year.
In 2025 nearly 93 percent of more than 789,000 properties rose in value by an average of 12.7 percent, potentially leading to another round of tax hikes.
State property values are reassessed every three years, according to a schedule that divides commercial and residential properties into three groups.
This upcoming year, it's group two's turn. They were last assessed in 2023.
Broken down, home and business owners in Washington and Talbot Counties experienced the highest value increase at 19.5 and 18.4 percent respectively.
That's still down significantly from last year's statewide increase of 20.1 percent imposed on group one.
“Property values are still rising, but at a more sustainable pace,” said Maryland Department of Assessments and Taxation Director Bob Yeager. “After the rapid increases seen during the post-COVID recovery, this moderation is an important step toward balancing household wealth growth with housing affordability.”
Notices were mailed to Group 2 on Tuesday. Property owners have 45 days to appeal their assessed values.
Although tax increases are legally capped at 10 percent annually, many local governments have implemented lower caps. At this point it's unclear how much property taxes could be increased.
Residents can apply for The Homeowners’ Tax Credit which sets a limit property taxes owed based on income for qualified candidates.
There's also a Homestead Tax Credit that caps a resident's yeary taxable assessment regardless of income level.
