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Maryland Homestead Tax Credit Program

To help homeowners deal with assessment increases on their principal residence, state law established the Homestead Property Tax Credit. The Homestead Credit limits the increase in taxable assessments each year to a fixed percentage. Every county and municipality in Maryland is required to limit taxable assessment increases to no more than 10 percent each year.
 
The Homestead Credit does not limit the market value of a property as determined by the Department of Assessments and Taxation. Instead, it is a credit calculated on any assessment increase exceeding 10 percent (or the lower cap enacted by the local governments) from one year to the next.