Montgomery County MD Property Tax 2026: Rates, Bill Calculator & How to Appeal

Part of: Buying a Home in Montgomery County · Selling a Home in Montgomery County

The combined property tax rate in Montgomery County, MD for FY 2027 (July 1, 2026 to June 30, 2027) is $1.1521 per $100 of assessed value, or about 1.15%, for a principal residence outside a municipality. On a $600,000 assessment, that works out to about $6,913 per year, or roughly $576 per month added to your mortgage payment. Homes in the Bethesda, Silver Spring and Wheaton urban districts pay slightly more, and homes inside Rockville, Gaithersburg, Takoma Park and other municipalities have a different rate mix. Here's exactly how the rate is calculated, what you'll owe, and how to legally appeal your bill.

Use the estimator above to run your own numbers.

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How Montgomery County Property Tax Is Calculated

Maryland and Montgomery County property taxes are assessed on the home's taxable assessment value, which is set by the Maryland State Department of Assessments and Taxation (SDAT) — not the purchase price.

The key distinction: Your taxable assessment may be significantly different from what you paid. Maryland conducts reassessments on a triennial (3-year) cycle. If you buy a home that was last assessed three years ago at a value well below current market, your taxable assessment will be below your purchase price — until the next reassessment cycle.

When the reassessment comes (every 3 years), two separate protections soften an increase:

• Phase-in (applies to everyone): an increase at a regular reassessment is phased in over the three years of the cycle. A decrease takes effect all at once.
• Homestead Tax Credit (principal residences only, if you've applied): caps the increase in your taxable assessment at 10% per year in Montgomery County (5% in the Town of Kensington).

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The Tax Rate Components

For FY 2027, the Montgomery County Council set the following rates per $100 of assessed value (County Council Resolution 20-1141, adopted May 21, 2026). These apply to a principal residence outside a municipality:

Component	Rate per $100	On a $600,000 assessment
State of Maryland	$0.1120	$672.00
County general (includes MCPS and Montgomery College)	$0.6706	$4,023.60
MCPS supplemental	$0.0470	$282.00
Mass transit	$0.0828	$496.80
Fire (one countywide rate)	$0.1196	$717.60
Recreation	$0.0329	$197.40
Storm drainage	$0.0000	$0.00
M-NCPPC parks and planning	$0.0872	$523.20
County total	$1.0401	$6,240.60
Combined State + County	$1.1521	$6,912.60

A few things to know about the table:

• The fire tax is countywide. It's a single $0.1196 rate, not a rate that varies by fire district.
• Urban districts add a small rate. Bethesda adds $0.012, Silver Spring $0.024 and Wheaton $0.030 per $100. On a $600,000 assessment that's an extra $72, $144 or $180 a year.
• Municipalities are different. Homes in Rockville, Gaithersburg, Takoma Park and other municipalities pay a different county rate mix plus a municipal tax rate. Check the current rates for your town with Montgomery County Finance.
• Non-tax charges are extra. Your bill also includes non-tax charges such as the solid waste fee, which vary by property.
• Rates change every year. For comparison, the county general rate was $0.6742 in FY 2026.

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What You'll Actually Pay: Three Scenarios

At the FY 2027 combined rate of $1.1521 per $100 (outside a municipality, before credits and non-tax charges):

Assessed Value	Annual Tax (est.)	Monthly
$400,000	$4,608	$384
$600,000	$6,913	$576
$800,000	$9,217	$768

The bill is based on SDAT's assessed value, and on a typical resale the assessment usually lags behind the purchase price. Even so, budget on your purchase price: the assessment tends to catch up at the next reassessment, and on a renovated home it can jump much sooner (see below). Verify the specific property's current assessment and tax bill at SDAT before closing — see how to look up Montgomery County real estate records for the exact steps.

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Just Bought? Why Your First Bills Can Be Higher

Three things catch new owners off guard, especially on renovated or flipped homes. I walk through all three in a real example in why property taxes jump after buying a flipped home.

• No Homestead cap in your first full year. A new owner isn't eligible for the Homestead Tax Credit in the first full fiscal year of ownership. The seller's cap doesn't carry over to you, so nothing limits the increase that year.
• Big renovations get picked up mid-cycle. Improvements or new construction that add more than $100,000 of value trigger an out-of-cycle reassessment, and that added value is not phased in. You can also receive a supplemental, partial-year bill for the rest of the tax year.
• The seller's tax estimate doesn't use your price. Montgomery County Code §40-12C requires sellers to give buyers an estimate of the first full fiscal year's property tax, but it's based on SDAT's current or phase-in assessment at current rates, not on what you're paying. On a renovated home that assessment may still reflect the house before the work, so the estimate can be far too low.

The fix is simple: estimate your taxes from the purchase price, and ask your lender to escrow on that number.

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The Homestead Tax Credit

The Homestead Tax Credit is the most important property tax protection for Maryland homeowners. Once your home is your principal residence:

• Your taxable assessment can only increase by a maximum of 10% per year in Montgomery County (not 10% over 3 years — 10% per year, compounded)
• This protection begins after the first full tax year you own and occupy the property (new owners aren't eligible in their first full fiscal year)
• You must apply for the credit (it's not automatic). It's a one-time application filed with SDAT

For buyers who purchase at current market prices, the Homestead Credit protects against runaway tax increases if the market continues to appreciate significantly.

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Senior Tax Credits and Other Exemptions

Senior Tax Credit (Maryland): Homeowners age 70+ who have owned their home for at least 3 years and meet income thresholds may qualify for significant property tax reductions.

Homeowner's Property Tax Credit: Maryland offers an income-based credit for homeowners whose property taxes exceed a defined percentage of income. Income limits apply.

Veterans' Exemption: Disabled veterans may qualify for property tax exemptions depending on disability rating.

Energy credits: Solar installations may qualify for property tax assessment exclusions — the added value of a solar system may not be included in assessed value.

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How Property Taxes Are Paid

Maryland's tax year runs July 1 to June 30, and bills are issued in July. On a principal residence, property taxes are due in two installments: September 30 and December 31 (full schedule in when Montgomery County real estate taxes are due). Most homeowners with mortgages have their property taxes escrowed — the lender collects roughly 1/12 of your annual tax bill each month and pays the county when due.

When you close on a home, you'll typically need to fund the escrow account with 2–6 months of property taxes depending on where in the tax year you close.

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Frequently Asked Questions

How much is property tax in Montgomery County, MD?

For FY 2027, the combined State and County rate is $1.1521 per $100 of assessed value (about 1.15%) for a principal residence outside a municipality. On a $600,000 assessment, expect about $6,913 per year, or about $576 per month in your escrow. Urban districts and municipalities have different rates, and non-tax charges are extra.

How are homes assessed for property tax in Maryland?

The Maryland State Department of Assessments and Taxation (SDAT) assesses all residential properties on a 3-year cycle. The assessment is SDAT's estimate of the property's market value. You can appeal an assessment if you believe it's too high.

Can I appeal my property tax assessment in Maryland?

Yes. You can appeal within 45 days of the date on an Assessment Notice. If you bought the home and it transferred to you between January 1 and June 30, you can appeal within 60 days of the transfer. And in the years your property isn't being reassessed, anyone can file a Petition for Review by the first working day after January 1, for the tax year starting the following July 1 (SDAT appeal process). Appeals are decided on market value, not on how much your tax went up, and an appeal can result in an increase. Comparable sales data, a recent appraisal, or documented condition issues can support your case. See how Montgomery County assessments work and how to appeal.

What is the Montgomery County Homestead Tax Credit?

The Homestead Credit limits annual increases in taxable assessments to 10% per year for owner-occupied primary residences in Montgomery County. This protects homeowners from large tax spikes when property values rise quickly. You must apply for it, and new owners aren't eligible in their first full fiscal year of ownership.

Are Montgomery County property taxes high compared to Virginia?

Montgomery County's combined rate is about 1.15% of assessed value outside municipalities for FY 2027. How that compares depends on the Virginia county's current rate and on the prices of the homes you're comparing; I break down the side-by-side in Montgomery County vs. Fairfax County.

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Sources & further reading

The primary sources behind the tax and assessment figures in this post:

• Montgomery County Council Resolution 20-1141: FY 2027 tax rates — the adopted State and County rate components used above
• SDAT: Assessment Appeal Process — appeal deadlines and levels
• SDAT: Maryland Homestead Property Tax Credit — eligibility and the one-time application
• Montgomery County Office of Consumer Protection: Estimated Real Property Tax (§40-12C) — how the seller's tax estimate is calculated
• IRS Topic 701 — Sale of Your Home — the capital-gains exclusion rules in the IRS's own words
• Comptroller of Maryland — Maryland state tax rules, forms and withholding on property sales
• Montgomery County Department of Finance — current county tax rates, billing dates and transfer/recordation figures