Maryland Department of Assessments and Taxation 2026 Reassessment Shows Property Value Growth at Slower Pace

The Maryland Department of Assessments and Taxation has completed its 2026 “Group 2” property reassessment, covering nearly 789,000 residential and commercial properties statewide. Assessment notices were mailed today, with all 23 counties and Baltimore City seeing increases in property values. Overall, about 93% of Group 2 residential properties increased in value, with a statewide average increase of 12.7%. State officials noted that while property values are still rising, the pace of growth has slowed significantly compared to the past two years. Any increases in assessed value will be phased in evenly over the next three years, and property owners may be eligible for tax relief programs, including the Homestead Tax Credit and the Homeowners’ Property Tax Credit.

Additional Information from The Maryland Department of Assessments and Taxation (SDAT)

The Maryland Department of Assessments and Taxation (SDAT) has completed its
2026 “Group 2” reassessment of 789,178 residential and commercial properties statewide. Property tax
assessment notices for properties in “Group 2” were mailed today; all 23 counties and Baltimore City
experienced an increase in property values, and overall, 92.7% of Group 2 residential properties
experienced an increase in value.
Maryland has more than two million property accounts divided into three groups. SDAT reassesses each
group once every three years. The 2026 assessments for “Group 2” properties were based on an
evaluation of 57,543 sales that occurred within the group. The overall statewide value increase for
“Group 2” properties was 12.7%, which represents an average increase in value of 13.2% for
residential properties and 11% for commercial properties during this period.
Though property values continue to rise, the pace of growth slowed significantly compared to recent
years. By comparison, statewide reassessments reflected increases of 20.1% last year and 23.4% in
2023, representing a 7.4 percentage-point decline in value growth from last year—nearly a 37%
slowdown. And compared to 2023, the growth rate declined by 10.7 percentage points, reflecting an
almost 46% slowdown.
Since January 2023, the Moore-Miller Administration has focused on strengthening housing affordability,
significantly increasing the amount of relief delivered through the Homeowners’ Property Tax
Credit program. Payments to eligible homeowners totaled $48.6 million in FY 2023, increased to $62.4
million in FY 2024, and reached $63.9 million in FY 2025. The increases reflect a continued
commitment to directing targeted relief to homeowners most impacted by rising housing costs.
The moderation in assessment growth, combined with strong homeowner support, reflects progress
toward stabilizing housing costs and supporting long-term affordability for Maryland families. Per Census
American Community Survey data, 68% of Maryland households are homeowners.
“Property values are still rising, but at a more sustainable pace,” said SDAT Director Bob Yeager. “After
the rapid increases seen during the post-COVID recovery, this moderation is an important step toward
balancing household wealth growth with housing affordability.”

To support housing affordability, each reassessment notice indicates whether the property is the owner’s
principal residence and provides the status of the Homestead Tax Credit application. The Homestead Tax
Credit limits how much the taxable assessment of a homeowner’s principal residence can increase each
year, regardless of income. State law caps the annual increase at 10%, and many local governments
have adopted even lower limits. Homeowners must submit a one-time application and meet program
requirements to receive the credit.
The Homeowners’ Property Tax Credit program offers additional relief to limited-income homeowners by
capping the amount of property taxes owed each year based on income. Eligible homeowners must apply
annually, and SDAT calculates credits in accordance with state law.

Any increase in assessed value will be phased in evenly over the next three years, while any decrease
will be fully implemented in the 2026 tax year.
Property owners are encouraged to visit SDAT’s Maryland Property Tax Credit Programs webpage to
learn more about available assistance.