The Maryland Department of Assessments and Taxation (SDAT) today announced that 2019 Homeowners’ and Renters’ Tax Credit applications are now available. SDAT strongly recommends that Marylanders consider whether they may be eligible to receive a Homeowners’ or Renters’ Tax Credit and to submit an application before the deadline on September 3. These two tax credit programs alone saved Maryland taxpayers more than $65 million in 2018. In addition, SDAT will be launching an innovative new online tax credit application system in the coming months; which will expand filing options, drastically reduce application processing times, and improve the service provided to customers.
“Our Department is committed to helping Maryland’s hard working taxpayers save money on their annual property tax bill and strongly encourages all residents to apply for the Homeowners’ and Renters’ Tax Credits,” said SDAT Director Michael Higgs. “We are also looking forward to imminently launching an innovative new online tax credit application system, which will make it faster and easier than ever before for Marylanders to apply for these important tax credits.”
The Homeowners’ Property Tax Credit Program provides tax relief for eligible homeowners by setting a limit on the amount of property taxes owed based on their income. Applications received and approved by May 1 will be included on the initial July tax bill. If a resident has already paid their property taxes and applies before September 3, any tax credit that the homeowner may be eligible for will be refunded by their county finance office. In FY18, 46,682 eligible homeowners received an average of $1,329 in tax relief.
The Renters’ Property Tax Credit Program similarly provides tax relief for eligible renters who pay high monthly rent relative to their total income. The majority of recipients of this credit are Marylanders age 60 or older, but the program is also available to the 100% disabled and renters under age 60 with at least one dependent child. This credit is issued in the form of a direct check payment of up to $1,000 a year. In FY18, 7,351 eligible renters received an average of $424 in tax relief.
All Marylanders who received a Homeowners’ or Renters’ Tax Credit in 2018 were mailed a complimentary 2019 application to their home address. To determine whether you are eligible to receive a tax credit, you may visit the links above or call 410-767-4433 or 1-800-944-7403 (toll free within Maryland). To receive an application, please firstname.lastname@example.org or call 410-767-4238. While completing your tax credit application, please read the instructions carefully, provide all required documentation, and review your application to ensure that all fields have been completed before submitting it to the Department.
Homeowners may also be eligible to receive a Homestead Tax Credit to limit taxable assessment increases on their principal residence. To determine eligibility, homeowners may complete a one-time application online, which is available to complete all year. Many counties and municipalities also offer additional residential tax credits, which provide additional tax relief. If a resident is approved to receive the state homeowners’ credit, they may automatically receive local supplemental homeowners’ credit for which they are eligible.
As a result of SDAT’s partnership with Benefits Data Trust (BDT), multi-lingual outreach specialists are readily available to assist individuals during the entire tax credit application process. BDT is a national non-profit committed to transforming how families and individuals in-need access essential benefits and services in Maryland. To receive assistance while completing your tax credit application and to be connected to additional state, local, and community programs that are available to low-income individuals, please contact the Maryland Benefits Center.
In addition, SDAT will be launching a new online tax credit application processing system in 2019. This innovative application system will allow customers to file their Homeowners’, Renters’, and Homestead Tax Credit applications entirely online. Not only will this new online system provide more convenient filing options to customers, but will also drastically reduce application processing times and improve customer service.
To ensure that eligible tax credit recipients submit their applications by the required deadline, SDAT strongly encourages all homeowners and renters in Maryland to sign up for our email distribution list to receive timely reminders and general news updates.