2022 Renters' Tax Credit Applications are now available.

​2022 Tax Credit Paper Applications are now available!

Click Here to download the Renters' Tax Credit Application.


Sign up​ to receive important email updates about these tax credits.

Renters' Tax Credit applications can now be filed online!

The Renters' Tax Credit Program provides property tax credits for renters who meet certain requirements. The plan was modeled after and designed to be similar in principle to the Homeowners' Tax Credit Program, which is known to many as the Circuit Breaker Program. The concept rests on the reasoning that renters indirectly pay property taxes as part of their rent and thus should have some protection, as do homeowners.

The plan is based upon the relationship between rent and income. If the portion of rent attributable to the assumed property taxes exceeds a fixed amount in relation to income, the renter can, under specified conditions, receive a credit of as much as $1,000. The credit is paid as a direct check from the State of Maryland. 

HOW A RENTED DWELLING IS DEFINED

The rented dwelling may be an apartment in an individual house or any type of apartment building, duplex, co-op, condominium, house trailer, or mobile home pad. The dwelling must be the principal residence in Maryland and the renter must live there at least six months of the year. You are only eligible to receive a tax credit for rent paid in the State of Maryland.

The applicant must have a bona fide leasehold interest in the property and be legally responsible for the rent. If the dwelling that is rented is owned by a tax exempt, charitable organization or is exempt in any way from property taxation, a tax credit cannot be granted.

HOW TO DETERMINE IF YOU MAY BE ELIGIBLE

COMBINED INCOMES: Credits are calculated according to total income, meaning all combined gross household income before deductions. This includes income from all sources, whether or not taxable for federal and state income tax purposes. It also includes Social Security as well as all other retirement benefits.

AGE 60 OR OVER OR 100% DISABLED

If you are age 60 or over or 100% disabled, use the chart below to determine if it is worthwhile for you to file an application.

CHART 1

  1. Find your approximate 2021 total gross household income in Column A.
  2. If your monthly rent is more than the figure in Column B across from your income, you may be eligible and are encouraged to apply.
Column A
Total Income
Column B
Monthly Rent

$1 - 10,000

117

20,000

423

25,000

576

33,000

800

39,000

1,000

43,000

1,100

46,000

1,200

49,000

1,300

53,000

1,400

56,000

1,500

59,000

1,600

62,000

1,700

66,000

1,800

69,000

1,900

​73,000

​2,000


The rent in Chart 1 assumes that you pay all your own utilities separate from the monthly rent. If the rent includes gas, electric and heat, you may need to have as much as 18% higher monthly rent to qualify for a credit.

Trailer park residents are advised to submit an application and allow this office to determine eligibility.

Chart 1 is a guide only, and the exact amount of your income and rent will be used to determine your eligibility. If you submit an application, the State will determine your eligibility.

UNDER 60 YEARS OF AGE

If you are a renter under the age of 60 who, during 2021​, had at least one dependent under the age of 18 living with you AND you did not receive federal or state housing subsidies or reside in public housing AND the combined income of all residents of your dwelling is below the following guidelines, you are encouraged to apply.

CHART 2

​Persons in Household
(Include Applicant)
2021​ Gross
Income Limit

2

$17,420

3

$21,960

4

$26,500

5

$31,040

6

$35,580

7

$40,120

8

$44,660

9

$49,200


Note: If you think you qualify based on the income limits on the above chart, you are encouraged to apply. The State will determine your eligibility using the above chart and the formula that compares rent and income (See Chart 1).

Contact Information

If you have additional questions regarding the Renters' Tax Credit, please contact the Department's Renters' Tax Credit Program at ​sd​at.renters@maryland.gov​ or 410-767-5915.​

 ​​​***************************************************************************************************

Homeowners' Property Tax Credit Program

The 2021 Homeowners' Tax Credit Application deadline was October 1, 2021.  ​2022 Homeowners' Tax Credit Applications are now available.

2022 Tax Credit Paper Applications are now available!

Click Here to download the Homeowners' Tax Credit Application.

Sign up​ to receive important email updates about these tax credits.

Homeowners' Tax Credit ​applications can now be filed online!

​What is the Homeowners' Property Tax Credit Program?

The State of Maryland has developed a program which allows credits against the homeowner's property tax bill if the property taxes exceed a fixed percentage of the person's gross income. In other words, it sets a limit on the amount of property taxes any homeowner must pay based upon his or her income. 

How Is "Income" Defined?

For purposes of the tax credit program, it is emphasized that applicants must report total income, which means the combined gross income before any deductions are taken. Income information must be reported for the homeowner and spouse and all other occupants of the household unless they are dependents or they are paying rent or room and board. Income from all sources must be reported whether or not the monies received are included as income for Federal and State income tax purposes. Nontaxable retirement benefits such as Social Security and Railroad Retirement must be reported as income for the tax credit program. Generally, eligibility for the tax credit will be based upon all monies received in the applicant's household in a given year.

What Are The Other Requirements?

Before your eligibility according to income can be considered, you must meet four basic requirements

  • You must own or have a legal interest in the property.
  • The dwelling on which you are seeking the tax credit must be your principal residence where you live at least six months of the year, including July 1, unless you are a recent home purchaser or unless you are unable to do so because of your health or need of special care.
  • Your net worth, not including the value of the property on which you are seeking the credit or any qualified retirement savings or Individual Retirement Accounts, must be less than $200,000.
  • Your combined gross household income cannot exceed $60,000.

How Is The Credit Figured?

The tax credit is based upon the amount by which the property taxes exceed a percentage of your income according to the following formula: 0% of the first $8,000 of the combined household income; 4% of the next $4,000 of income; 6.5% of the next $4,000 of income; and 9% of all income above $16,000.

The chart below is printed in $1,000 increments to show you the specific tax limit for each income level.

2021​ Household IncomeTax Limit

$1 - 8,000

$0

9,000

40

10,000

80

11,000

120

12,000

160

13,000

225

14,000

290

15,000

355

16,000

420

17,000

510

18,000

600

19,000

690

20,000

780

21,000

870

22,000

960

23,000

1050

24,000

1140

25,000

1230

26,000

1320

27,000

1410

28,000

1500

29,000

1590

30,000

1,680

and up to a maximum
of $60,000

*


                         

* For each additional $1,000 of income above $30,000, you add $90 to $1,680 to find the tax limit. Your combined gross household income cannot exceed $60,000.

Example:If your combined household income is $16,000, you see from the chart that your tax limit is $420. You would be entitled to receive a credit for any taxes above the $420. If your actual property tax bill was $990, you would receive a tax credit in the amount of $570 --- this being the difference between the actual tax bill and the tax limit.

What Other Limitations?

  • Only the taxes resulting from the first $300,000 of assessed valuation.
  • It does not cover any metropolitan or fixed charges for water and sewer services that may appear on the tax bill.
  • If an applicant owns a large tract of land, the credit will be limited to the lot or curtilage on which the dwelling stands and will not include the excess acreage.
  • If a portion of your dwelling is used for commercial or business purposes, the credit will be based only upon the taxes for that portion of the dwelling occupied by your own household.

How Does One Receive The Credit?

Homeowners who file and qualify by April 15 will receive the credit directly on their tax bill. Persons who file later up until the October1 deadline will receive any credit due in the form of a revised tax bill. Applicants filing after April 15 are advised not to delay payment of the property tax bill until receipt of the credit if they wish to receive the discount for early payment offered in some subdivisions. A refund check will be issued by the local government if the tax bill was paid before the tax credit was granted.

What Happens If One Is Not Eligible?

Whenever homeowners are found not qualified to receive a tax credit, they are informed in writing. The letter gives the reason for denial and what steps to take if further questions remain. The letter also explains how homeowners can appeal the determination of ineligibility to the local Property Tax Assessments Appeals Board.​​​​​​​

Contact Information

If you have additional questions regarding the Homeowners' Tax Credit, please contact the Department's Homeowners' Tax Credit Program at ​sd​at.homeowners@maryland.gov​ or 410-767-5900.



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