Baltimore launches initiatives to bring property tax relief to residents

Baltimore unveiled two initiatives to improve property taxes for residents. 

The first aims to lower the effective tax rate for homeowners, and the second will change the city's tax sale process, raising the minimum bid to assessed value and establishing payment plans for some residents. 

The initiatives should improve the city's property tax competitiveness and provide relief for vulnerable residents, the mayor said. 

"We know that our property tax rate can be a challenge for homeowners, which is why — in addition to our broader housing affordability investments — we're announcing this strategy to bring the effective property tax rate for residential homeowners below $2.00 this year," Mayor Brandon Scott said. 

Plan for property tax relief in Baltimore

The city will use a three-part relief strategy to lower property taxes for residents. The strategy will modernize some tax credits and lower the burden on those who receive the credits. 

The three-part strategy includes: 

• Adjusting the homestead tax credit. Legislation to adjust this will be introduced in the city council with the goal of being implemented in the 2027 tax season.
• Expanding Targeted Homeowners Tax Credit. A plan will be presented to the Board of Estimates for approval with the city's 2027 proposed budget. 
• Boosting enrollment in the State Homeowners' Property Tax Credit and Renter's Tax Credit. The city will use campaigns to ensure residents take advantage of the tools they qualify for. 

Under this strategy, the Homestead Tax Credit cap would be changed from 4% to 6%. State law allows for jurisdictions to set the cap between 0% and 10%. The current cap in Baltimore has been in place since the 1990s and is lower than most other Maryland jurisdictions, the mayor said. 

"When paired with the other proposed adjustments, this change will ultimately generate enough revenue to lower property taxes for the vast majority of Baltimore's residential homeowners and ensure that the majority of impacted residents ultimately see their overall tax burden decrease below anticipated levels or remain net neutral," Mayor Scott said in a statement. 

The city will also increase funding for the Targeted Homeowners Tax Credit, lowering the effective homeowner tax rate from $2.048 to $1.99 per $100 of assessed value. 

The change should offset the amount that property owners owe under the adjusted Homestead Tax Credit, so that many see lower tax receipts in 2027. This will be presented to the Board of Estimates along with the city's 2027 budget proposal. 

Proposed changes to Baltimore's tax sale 

The city also plans to make significant changes to its tax sale process after reaching an agreement with Maryland Legal Aid to stay a lawsuit that challenged the city's current system.

This effort would include raising the minimum bid for tax sale to the assessed value of a property. This should ensure that residents do not lose equity when a property is transferred through the tax sale process, the mayor said. 

The move would also establish payment plans for some residents. Establishing the payment plans would require additional action by the city council. Legislation to implement this strategy will be introduced in the council, according to the mayor.

Residents can express their interest in the payment plans or find more information here.