ANNAPOLIS, Md. — Property taxes are expected to rise for Maryland businesses and homeowners in the new year.
In 2025 thousands of Marylanders saw their property values rise 20 percent, likely leading to higher taxes.
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 one's turn. They were last assessed in 2022; and saw their property value go up by 12 percent.
Broken down, Somerset County home and business owners saw the highest value increase at 32 percent, followed by Allegany County at 31 percent.
The last time group one's property values decreased was 2013.
Notices were sent to Group 1 this week. Property owners have 45 days to appeal the assessed value.
In January 2024, group three experienced a 23.4 percent increase in property value. Group two is scheduled to be reassessed in January 2026.
Click here to see the numbers.
Although statewide legislation caps increases at 10 percent annually, many local governments have implemented lower caps.
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.
Additional costs for a number of other bills, including vehicle registration, water, tolls, and possibly even gas and electric, are likely in 2025 as well.
Editor's Note: Our original reporting suggested a 20 percent property tax increase. We've since revised this to correctly state property values increased, likely meaning taxes will rise in 2025, yet it's unclear by how much.
