The City of Rockville charges residents a real property tax and charges businesses a real and personal property tax. The amounts charged are based on the City’s tax rates and the value of the properties. The current tax rates equal $0.292 per $100 of assessed value for real property and $0.805 per $100 of assessed value for personal property.
Property value is determined by the assessed value of real estate (including land and structures on the land) and the assessed value of personal property of business establishments (inventory, furniture, and fixtures). The Maryland State Department of Assessments and Taxation (SDAT) is responsible for determining the assessed values for all properties located in the City of Rockville. More than half of all of the City’s General Fund revenues are derived from real and personal property tax.
The City of Rockville’s property taxes are billed on the Montgomery County consolidated tax bill in July of each year. Residents and businesses can view their real property tax bills on the Montgomery County website. Here you can search all real property tax bills by account number, bill number, or street address.
Income tax revenue is the second-largest source of revenue in the General Fund. Income tax revenue consists of the City’s share of income taxes received by the State of Maryland from returns filed from Rockville. The City does not have a separate income tax rate, but receives 17 percent of collected County income taxes. Montgomery County’s income tax rate is 3.2%.
All property tax and income tax revenue is collected by the State of Maryland and Montgomery County, which then distribute Rockville’s share to the City.
The City of Rockville, as authorized under Chapter 22 of the Rockville City Code, imposes a 2% hotel rental tax for persons utilizing sleeping accommodations at a hotel, motel, or similar place. It is the responsibility of each provider of accommodations to collect this tax and send a monthly report and remittance to the City. Please refer to the City’s Hotel Rental Tax Information and Hotel Rental Tax Report for more information.
Homeowners’ Property Tax Credit Program
The City of Rockville offers a supplemental credit to the State of Maryland’s Homeowners’ Tax Credit Program. This State administered program provides real property tax credits to low- and moderate-income residents for property taxes on their principal residence. Under the City’s current Program, households with gross incomes up to $91,000 per year and a household net worth of less than $200,000 (not including the value of the home or qualified retirement savings) could qualify for tax relief on the first $495,000 of their home’s assessed value. For low-income households, the credit could be several hundred dollars, with a maximum credit of the total City tax due on the first $495,000 of assessed value.
To be eligible for the tax credit, a detailed application must be submitted to the State of Maryland’s Department of Assessments and Taxation. The preferred deadline for submission of the application is April 15th of each year. The final deadline is October 1st of each year.
The application and more detailed information can be found on the Maryland State Department of Assessments and Taxation website.
For more information on the Homeowners’ Tax Credit Program, please call the Maryland Department of Assessments and Taxation at (toll free) 1-800-944-7403.
Montgomery County Property Tax Credit for Elderly Individuals and Military Retirees
On March 7, 2017, The Montgomery County Council passed Bill 42-16, which will provide a tax credit for people who are over 65 years of age and who either:
- Have owned and lived in the dwelling that they own for at least 40 consecutive years, or
- are retired from one of the United States’ armed forces (Air Force, Army, Coast Guard, Marine Corps, Navy).
This bill will provide a 20% credit, on County property taxes only, only for owner-occupied dwellings for which at least one of the owners meet the eligibility requirements noted above. The credit is granted for 5 consecutive years, and the credit is not available after that 5 year period.
For more information on this County sponsored tax credit please visit the Montgomery County website.