Posted on 01/05/25
| News Source: FOX45
Some Maryland property owners are concerned about how they will pay their tax bills after receiving property reassessment notices that show a double-digit increase in taxable value from the state.
Chris Carper, a former long-term homeowner and landlord in Baltimore, told Spotlight on Maryland on Saturday that he relocated his family to more affordable housing in 2022 on the state’s Eastern Shore.
The new assessment is going to put me back where I was, closer to where I was when I lived in Baltimore City,” Carper said. “That, along with the crime rate, were the two driving factors that caused us to move.”
Maryland law directs the Department of Taxation and Assessments (SDAT) to automatically reassess one-third of its nearly 2 million taxable residential and commercial properties in its portfolio annually. Carper’s home located outside of Ocean City in Worcester County, along with all four of his rental houses, were among the more than 700,000 properties the state reassessed for the upcoming 2025 tax year.
“My personal residence, over the three-year [phase-in period], is going up 31.2%,” Carper said. “I have another rental property that is going up 24%, another that’s going up 35.3%.”
“[When I received the mail], I was shocked, I was angry and who wouldn’t be,” Carper added.
SDAT Director Dan Phillips said in a news release at the beginning of the year that the average statewide value for residential properties increased by 21.1%, while the average for all reassessed commercial properties rose by 16.4% in 2025.
State assessment data shows that Western Maryland and the Eastern Shore saw the highest increases in property assessments. In Central Maryland, Baltimore County experienced the most significant rise in residential property values, increasing by 22.6%.
Property assessment values in Baltimore City rose by 17.4% compared to the previous assessment conducted three years ago.
Tyrone Keys, a 20-year real estate and financial services professional with Soldiers of Finance, told Spotlight on Maryland that while some property owners may be pleased to see an increase in their home values, the potential resulting tax burden could present challenges.
One of the things about your real property or your real estate is that sure, the value goes up, but you can’t take that value to the grocery store and exchange it for a chuck roast,” Keys said. “You can’t take it and get a gallon of gas.”
Keys said he is worried that rising property tax bills, coupled with potential attempts from state officials to close Maryland’s balloon budget shortfall, could put household budgets under extreme strain.
“I think Maryland is experiencing population loss for a variety of reasons,” Keys said. “This $3 billion [state] deficit they got to deal with, if they push that off onto the taxpayer, then they’re going to see a larger exodus for sure.”
“The key here is that government, the local, state and federal, need to get control of spending,” Keys added.
Phillips told Spotlight on Maryland in a statement that his team is working to ensure taxpayers are applying for all available discounts to help offset potentially higher bills.
“As part of our Tax Credit Awareness Campaign, each reassessment notice includes the status of the property as the owner’s principal residence and the status of their Homestead Tax Credit application,” Phillips said. “Owners are encouraged to apply for the Homestead Tax Credit if the property is their principal residence and they have not applied.”
State law also provides relief for some homeowners who are facing financial difficulties by placing a limit on property taxes based on their income under the Homeowners’ Tax Credit program.
Carper said, despite the available tax assistance programs, he will need to make difficult decisions to balance his family's budget this year.
“I live two miles from Selbyville, Delaware,” Carper said. “I have been thinking about, and very seriously thinking about, selling my five properties in Maryland and moving to Delaware to not have to deal with this kind of issue.”