Many property owners in Maryland are facing concerns over how they will manage their tax bills following property reassessment notices that show significant increases in taxable values.
Chris Carper, a former long-time homeowner and landlord in Baltimore, shared his experience with Spotlight on Maryland on Saturday, explaining how he moved his family to a more affordable home on the Eastern Shore in 2022.
“The new assessment is going to put me back to where I was, closer to what I paid when I lived in Baltimore City,” Carper explained. “That, along with the crime rate, were the two main reasons we moved.”
Maryland law mandates that the State Department of Taxation and Assessments (SDAT) reassess one-third of the state’s nearly 2 million taxable properties annually. Carper’s home in Worcester County, near Ocean City, and his four rental properties were among the 700,000 properties reassessed for the 2025 tax year.
“My personal residence is increasing by 31.2% over the three-year phase-in period,” Carper said. “I have one rental property increasing by 24%, another by 35.3%.”
“When I received the notice, I was shocked and angry—who wouldn’t be?” Carper added.
SDAT Director Dan Phillips announced at the start of the year that the average value of residential properties in Maryland increased by 21.1%, while commercial properties rose by 16.4% for the 2025 assessments.
Western Maryland and the Eastern Shore experienced the largest increases, with Baltimore County seeing the biggest rise in residential property values in Central Maryland at 22.6%. Baltimore City’s property values increased by 17.4% compared to the last assessment conducted three years ago.
If an owner’s property value rises after the reassessment, the increase will be phased in over three years. However, Maryland law caps the taxable portion of the increase at 10% annually, with many local governments implementing even smaller caps. In Baltimore City and Baltimore County, for instance, the cap is set at 4% annually, so property owners may not face tax increases at the same rate as their property assessments over the next three years.
Tyrone Keys, a real estate and financial services expert with Soldiers of Finance, told Spotlight on Maryland that while some homeowners may be pleased to see their property values increase, the resulting tax burden could create challenges.
“Yes, your property value may go up, but you can’t take that value to the store and exchange it for necessities,” Keys pointed out. “You can’t use it for groceries or gas.”
Keys expressed concern that rising property taxes, coupled with efforts to address Maryland’s ballooning state budget deficit, could place significant strain on household finances.
“Maryland is losing population for various reasons,” Keys said. “If the state tries to shift its $3 billion budget deficit onto taxpayers, they could see even more people leaving the state.”
“The key is for governments—local, state, and federal—to get control of spending,” Keys emphasized.
Phillips reassured Spotlight on Maryland that his team is working to help taxpayers access all available discounts to alleviate the impact of higher bills.
“As part of our Tax Credit Awareness Campaign, every reassessment notice includes information on the property’s principal residence status and Homestead Tax Credit eligibility,” Phillips explained. “We encourage property owners to apply for the Homestead Tax Credit if the property is their principal residence and they haven’t already done so.”
Additionally, the state offers relief for homeowners experiencing financial hardship through the Homeowners’ Tax Credit program, which limits property taxes based on income.
Despite the available programs, Carper noted that he would still face difficult decisions to balance his family’s finances this year.
“I live just two miles from Selbyville, Delaware,” Carper said. “I’m seriously considering selling my five properties in Maryland and moving to Delaware to avoid these kinds of issues.”
Local Story
