What's Happening?
Property assessments in Southern Maryland's Calvert, Charles, and St. Mary's counties have increased between 9.0 percent and 12.5 percent for the 2026 tax year, as reported by the Maryland Department of Assessments and Taxation. This reassessment affects
Group 2 properties, which make up one-third of the state's real estate. The average statewide increase is 12.7 percent, with residential values climbing 13.2 percent and commercial values advancing 11.0 percent. The reassessment process aims to align property values with current market data to ensure fair taxation. Property taxes in Maryland are calculated based on assessed values, with state and local rates applied. The Homestead Tax Credit limits annual taxable assessment growth for owner-occupied residences, with varying caps set by counties. Property owners have 45 days from the notice date to appeal their assessments.
Why It's Important?
The increase in property values in Southern Maryland has significant implications for local budgets and taxpayers. Higher assessments can lead to increased property tax revenues, which may support local services such as schools and infrastructure. However, they also raise concerns about housing affordability and the financial burden on homeowners. The phased implementation of increased assessments and the availability of tax credits aim to mitigate these impacts. The reassessment reflects a moderation in growth compared to previous cycles, indicating a more sustainable pace of property value increases. This development is crucial for balancing household wealth growth with housing affordability, especially in the context of post-COVID economic recovery.
What's Next?
Property owners dissatisfied with their assessments can appeal within 45 days of receiving their notice. The appeal process involves a first-level appeal to the local assessment office, with potential reviews by the Property Tax Assessment Appeals Board and the Maryland Tax Court. Additionally, local governments may adjust tax rates to offset the impact of increased assessments on taxpayers. The ongoing reassessment process will continue to influence local government decisions on budget allocations and tax policies, affecting public services and infrastructure development in the region.
