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Final Reminder to Apply for Montgomery County Property Tax Credits

Posted April 18, 2023 at 11:18 AM

Business & Tax, Maryland Property Tax News, News & Events, Real Estate

Attention Montgomery County Residents! Don’t forget to submit your applications for the State Homestead Tax Credit by May 1 so that the County can continue to provide you with the local ITOC Property Tax Credit.  You can find links to the online and paper applications below.  If you mail the paper application, make sure to get a postal tracking number so that you know when SDAT receives your application.  Save a copy of your application for your records in case the credit doesn’t appear on your new tax bill in July.

Montgomery County Income Tax Offset Credits (ITOC) Background

  • For the past 20 years, Montgomery County has provided an ITOC credit of $692 on every residential tax bill.  Previously, you did not have to apply for this credit. 
  • Recently, the State changed their enabling law to require Montgomery County residents to apply for a State Homestead Tax Credit before the County can grant a local ITOC credit.  You read that correctly!  You now need to apply for a State property tax credit in order to receive a County property tax credit.
  • You only need to apply once, but you will need to do so before May 1, 2023, or the next tax bill issued in July will: (1) not include an ITOC of credit of $692 AND, (2)  include a recapture of last year’s $692 credit.  So, you risk losing approximately $1,400 in tax benefits if you don’t apply by May 1st.

Links to the Application:

Additional Online Information:

Taggart (“Tagg”) Hutchinson is a Partner in Miller, Miller & Canby’s Real Estate practice, focusing on commercial real estate transactions, financings and settlement services and related litigation, as well as property tax appeals and land development matters. Please feel free to contact Mr. Hutchinson at 301.762.5212 or send him an email for property tax guidance or to help reduce your commercial Maryland property tax assessment.  For more information about the firm’s Maryland property tax appeals practice and representative cases, click here.

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