Taxes

Property Tax

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. The city has not raised the property tax rate since 1995.

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. 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, where you can search all real property tax bills by account number, bill number, or street address.

Find tax rates and personal property exemptions by year and jurisdiction on the SDAT website.

Income Tax

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% 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.

Hotel Tax

The City of Rockville imposes a 2% hotel rental tax for people 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’ Property 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. For more information, contact the Maryland State Department of Assessments and Taxation.

Montgomery County Tax Credit and Exemption Program

Montgomery County offers other tax credits and exemptions. For more information, please visit Montgomery County Tax Credit and Exemption Information.