Maryland Mortgage Calculator
Maryland’s Homestead Tax Credit caps how fast your assessment can grow, but it starts from your purchase price, not a discount — pick your county below to see your real payment.
Loan & Property Details
Auto-fills from the county selected above; edit if you know your exact municipal + special district rate.
Your Estimated Monthly Payment
Choose a county and enter your details to see a plain-language read on your payment.
What If You Paid Extra Toward Principal?
Slide to test an extra monthly payment and see how many years and how much interest it saves.
What If Your Rate Changes?
Your 5-Year Equity Snapshot
Good to Know: Maryland’s Transfer Taxes Are Real Buyer Costs
Unlike most states in this calculator series, Maryland’s combined state, county, and recordation taxes are customarily split between buyer and seller, so this is a real number for you, not just a future seller concern.
| State transfer tax | 0.5% of sale price (0.25% for qualifying first-time Maryland buyers) |
| County transfer tax | Varies by county, from none up to about 1.5% |
| Recordation tax | Varies by county, typically $3–$10 per $500 of value |
| Who customarily pays | Often split 50/50 between buyer and seller, though fully negotiable and varies by local custom |
Maryland’s Homestead Tax Credit Doesn’t Do What Most New Buyers Assume
Search “Maryland Homestead Tax Credit” and you’ll find plenty of reassurance about a cap on assessment growth: Montgomery County caps it at 10%, Anne Arundel at 2%, Baltimore City at 4%, and so on down to Talbot County’s 0%, which effectively freezes assessed value entirely. Here’s the part that trips up new buyers: this credit protects an existing owner from a fast-rising assessment on a home they already own. It does nothing for your first bill as a buyer, because a newly purchased home is typically assessed at or near its actual purchase price from day one. The Homestead credit only starts doing work in year two and beyond, if and when the county’s assessed value would otherwise climb faster than the local cap allows. This calculator’s baseline math reflects a first-year buyer’s real exposure, not a credit that hasn’t kicked in yet.
Montgomery, Prince George’s, Baltimore County, and Baltimore City: how Maryland’s structure actually works
Montgomery County, part of the Washington, D.C. metro area, carries the state’s highest median home values by a wide margin, though its effective rate runs comparatively moderate. Prince George’s County, its neighbor, runs a meaningfully higher effective rate on considerably lower home values. Baltimore County, surrounding but not including the city of Baltimore, sits close to the statewide median. Baltimore City is where Maryland’s structure gets genuinely unusual: it is an independent jurisdiction, not part of any county at all, and it carries the highest effective property tax rate in the state by a significant margin, funding city services without the broader county tax base that surrounding jurisdictions share. Switching among these four above resets both price and rate defaults to match.
| Home purchase price (year one, new buyer) | $450,000 |
| Initial assessed value | $450,000 (at or near purchase price) |
| Prince George’s combined rate | 1.12% |
| Year-one estimated tax | $450,000 × 1.12% ≈ $5,040 |
| Homestead Credit benefit this year | None — the credit protects future growth, not the purchase-year assessment |
The credit that actually helps your current bill: the Homeowners’ Property Tax Credit
Unlike the Homestead credit, Maryland’s Homeowners’ Property Tax Credit, sometimes called the circuit breaker, genuinely reduces your current bill. It limits property tax to a sliding-scale share of household income, with eligibility running up to roughly $60,000 in income, and applications due to the state by April 15 each year. It must be filed annually; it isn’t automatic and doesn’t carry over. The toggle above models this credit directly, since it’s the relief that actually shows up on a first-year buyer’s bill.
Local senior credits and the full veteran exemption
Maryland has no single statewide senior property tax exemption, but many counties layer on their own local senior credit. Prince George’s County, for example, offers a 20% reduction on the county portion of the bill for income-qualified homeowners 65 and older; similar local programs exist in Montgomery, Howard, Anne Arundel, and Baltimore counties, each with its own rules. Separately, veterans with a 100% permanent, service-connected disability rating receive a complete exemption from property tax on their principal residence, one of the strongest veteran benefits in this calculator series.
Common Mistakes Maryland Buyers Make With the Numbers
- Assuming the Homestead Credit lowers a first-year bill. It caps future assessment growth on a home you already own; it does nothing for the purchase-year assessment.
- Confusing Baltimore City with Baltimore County. They’re entirely separate jurisdictions with different tax rates; the city isn’t part of the county at all.
- Forgetting to reapply for the Homeowners’ Property Tax Credit every year. Unlike the Homestead Credit’s one-time application, this one must be filed annually.
- Assuming the seller pays all of the transfer and recordation taxes. Maryland customarily splits these between buyer and seller, unlike most states in this calculator series.
- Overlooking local senior credits. Several counties offer their own credits on top of state relief; check with your specific county, not just the state program.
Tips for Lowering Your Maryland Mortgage Costs
- File the one-time Homestead Tax Credit application with SDAT so future assessment growth is capped once you’ve owned the home long enough for it to matter.
- If household income qualifies, file for the Homeowners’ Property Tax Credit every year by April 15; it’s the relief that actually reduces your current bill.
- If a veteran on title has a 100% disability rating, confirm the full property tax exemption with your local SDAT office.
- Ask about county-specific senior credits if a borrower is 65 or older, since eligibility and amounts vary meaningfully by county.
- Confirm who’s expected to pay which share of the transfer and recordation taxes early in negotiations, since Maryland’s local customs vary by county.
Frequently Asked Questions
How is property tax calculated in Maryland?
Maryland assesses property at 100% of market value, reassessing every three years with increases phased in equally over that period, then applies the combined state and county rate to the assessed value, subject to the Homestead Tax Credit’s cap on future assessment growth.
Does the Maryland Homestead Tax Credit lower my first tax bill?
Not typically. A newly purchased home is usually assessed at or near the purchase price in year one, so the credit, which caps future assessment growth, has nothing to offset yet. It becomes valuable starting in later years.
Is Baltimore City part of Baltimore County?
No. Baltimore City is an independent jurisdiction, separate from Baltimore County, with its own government and its own property tax rate, the highest in the state.
What is Maryland’s Homeowners’ Property Tax Credit?
An income-tested credit, sometimes called the circuit breaker, that limits property tax to a sliding-scale share of household income for those earning up to roughly $60,000. It must be filed annually by April 15.
Do veterans get a property tax break in Maryland?
Yes, veterans with a 100 percent permanent, service-connected disability rating receive a complete exemption from property tax on their principal residence.
Does Maryland have a real estate transfer tax?
Yes, a 0.5 percent state transfer tax (reduced to 0.25 percent for qualifying first-time buyers), plus a county transfer tax and a recordation tax that both vary by county, customarily split between buyer and seller.
Which Maryland county has the lowest property tax rate?
Among the state’s largest jurisdictions, Montgomery County generally runs a lower effective rate than Prince George’s, Baltimore County, or Baltimore City, though several smaller rural counties post lower rates statewide.
What down payment do I need to buy a home in Maryland?
Conventional loans often start around 5% down, FHA loans typically require 3.5%, and VA loans can allow 0% down for eligible veterans.
When can I remove PMI on a Maryland home loan?
Federal law allows requesting PMI removal at 20% equity, with automatic lender cancellation at 22% equity based on the original amortization schedule.
Does this calculator include closing costs?
No, this tool estimates the ongoing monthly payment only. Maryland closing costs, including the buyer’s typical share of transfer and recordation taxes, are often higher than in many other states and should be budgeted separately.
References
- Maryland State Department of Assessments and Taxation (SDAT), Homestead Tax Credit and Homeowners’ Property Tax Credit guidance – dat.maryland.gov
- Montgomery, Prince George’s, Baltimore County, and Baltimore City tax rate certifications – jurisdiction government sites
- Maryland Tax-Property Article, including § 7-208 (disabled veteran exemption)
- Freddie Mac Primary Mortgage Market Survey, weekly national rate averages – freddiemac.com/pmms
Related DexoCalc Tools
This Maryland mortgage calculator is part of the Mortgage Calculators cluster I am building out on DexoCalc. Start with the national Mortgage Calculator to compare Maryland against any other state, see a very different assessment-growth-cap approach in the Indiana Mortgage Calculator, compare a state that also splits its transfer tax with buyers in the Delaware Mortgage Calculator, or check a state at the opposite tax extreme in the New Jersey Mortgage Calculator. Browse every state-specific tool as new ones publish on the full Mortgage Calculators hub.
This calculator provides estimates for educational purposes only and is not a loan offer, pre-approval, or substitute for advice from a licensed Maryland mortgage professional or tax advisor. Property tax, credit, and transfer tax figures are approximations that vary by jurisdiction and individual circumstances; confirm exact figures with your local SDAT office. Sources: Maryland SDAT, county and city tax offices, Freddie Mac.