What the Maryland Homestead Exemption does

The Maryland Homestead Exemption reduces the assessed value of your primary residence, which lowers the property tax bill you owe each year. The exemption subtracts $67,200 from your home's assessed value (as of 2024; this amount adjusts annually). If your home is assessed at $300,000, the exemption means you pay tax on $232,800 instead. The savings depend on your local tax rate, but most homeowners see a reduction of $600 to $1,200 per year.

You do not apply for this exemption every year. Once you file the initial form with your county assessor, the exemption stays in place as long as you own and live in the home. If you move or sell, it ends. The exemption applies only to your primary residence—you cannot use it on rental properties, vacation homes, or investment real estate.

Key Takeaways

  • The homestead exemption subtracts $67,200 from your home's assessed value, reducing your annual property tax bill by several hundred dollars on average.
  • You file once with your county assessor using Form 4-H; after that, the exemption renews automatically each year as long as you own and occupy the home.
  • You must own the home and live there as your primary residence; the exemption does not work for rental properties, second homes, or investment real estate.
  • The exemption amount increases each year by a set formula tied to inflation, so your tax savings may grow over time.
  • If you miss the filing deadline or fail to renew, you lose the exemption for that tax year and must reapply to get it back.

Who can use the homestead exemption

You must meet three conditions: you own the property, you live there as your primary residence, and you are a Maryland resident. "Primary residence" means the home where you spend most of your time and receive mail. If you own multiple properties in Maryland, you can claim the exemption on only one of them.

Married couples who both own the home can file jointly on one Form 4-H. If you own the home with someone who is not your spouse—a family member, business partner, or friend—you can still claim the exemption, but only for your share of the property. The assessor will calculate the exemption based on your ownership percentage.

You do not need to be a U.S. citizen, but you must be a Maryland resident. If you are in the military and stationed outside Maryland, you may still claim the exemption on a Maryland home if your spouse lives there or if you intend to return there. Contact your county assessor to discuss your situation.

How to file Form 4-H with your county assessor

Download Form 4-H (Application for Homestead Tax Credit) from your county assessor's website or request a copy by mail or phone. The form asks for your name, address, ownership details, and a statement that the property is your primary residence. You do not need a lawyer or tax professional to complete it—the form is straightforward and the assessor's office can answer questions over the phone.

Mail the completed form to your county assessor's office or deliver it in person. Some counties accept online filing through their website; check your county's assessor page to see if that option is available. Include a copy of your deed or a recent property tax bill to prove ownership. The assessor will send you a confirmation letter once the form is processed, usually within two to four weeks.

File by the deadline your county sets—most counties require Form 4-H by March 31 or April 15 of the tax year. If you miss the deadline, you lose the exemption for that year. You can reapply the following year, but you will not receive a refund for the year you missed. Check your county assessor's website or call to confirm the exact deadline.

What documents you need to bring or send

You will need proof of ownership and proof that the property is your primary residence. A copy of your deed, a recent property tax bill, or a mortgage statement all show ownership. For proof of residence, use a driver's license, voter registration card, or a utility bill in your name at that address.

If you recently purchased the home, bring the settlement statement or closing documents. If you are claiming the exemption on behalf of a deceased spouse's estate or as a surviving spouse, bring a copy of the death certificate and the will or probate documents. If you own the property with others, bring documentation showing each owner's name and ownership percentage.

The assessor's office will tell you exactly what they need when you call or visit. Bringing more documents than required does not hurt—it speeds up processing. Keep copies of everything you submit for your own records.

How the exemption amount changes each year

The exemption amount is not fixed. Maryland adjusts it annually using a formula based on inflation and the statewide average home value. In 2024, the exemption was $67,200. In 2023, it was $66,000. The amount typically increases by $800 to $1,500 per year, though the exact increase varies.

You do not have to do anything to receive the increase. The assessor automatically applies the new amount to your assessment each year. Your tax bill will reflect the updated exemption amount without any action on your part, as long as your Form 4-H remains active.

What happens if you sell or move

The exemption ends on the date you sell the property or move out. If you sell mid-year, the exemption applies only to the portion of the year you owned and occupied the home. The new owner can file their own Form 4-H if they meet the requirements, but they start fresh—they do not inherit your exemption.

If you move to a different Maryland home, you must file a new Form 4-H for the new address. The exemption does not transfer automatically. File the new form before the deadline to avoid losing a year of tax savings. If you move out of state, you lose the exemption permanently for that property.

Frequently Asked Questions

What if I inherit a home—can I claim the homestead exemption?

Yes, if you move into the inherited home and it becomes your primary residence. Bring the death certificate, probate documents, and proof that you now live there. File Form 4-H within the deadline. If you inherit the home but do not live in it, you cannot claim the exemption.

Can I claim the exemption if I rent out part of my home?

Yes, as long as you live in the home as your primary residence. The exemption applies to the whole property, not just the part you occupy. You do not lose it because you rent out a room or a basement apartment.

What if I filed Form 4-H but did not receive a confirmation letter?

Call your county assessor's office and ask whether the form was received and processed. Bring your name, address, and the date you filed. If the form was lost, file again immediately. If the deadline has passed, ask whether you can still file for the current year or whether you must wait until next year.

Does the homestead exemption affect my home's market value or resale price?

No. The exemption only reduces the assessed value used to calculate property tax. It does not change what your home is actually worth or what a buyer will pay for it. The exemption is a tax benefit only.

Can I claim the homestead exemption if I own the home in a trust?

Yes, but you must be the trustee and the home must be your primary residence. Bring a copy of the trust document along with Form 4-H. Some counties have specific instructions for trust-owned properties, so call your assessor's office before filing to confirm what they need.