Baltimore Unveils Property Tax Relief and Tax Sale Reforms
New Baltimore Initiatives Aim to Ease Property Tax Burden and Reform Tax Sales
Baltimore officials have announced two major initiatives aimed at easing the property tax burden on residents while making the city’s tax sale process more equitable. City leaders say the combined efforts are designed to improve Baltimore’s competitiveness on property taxes and provide meaningful relief, particularly for vulnerable homeowners.
The first initiative focuses on lowering the effective property tax rate for residential homeowners. Mayor Brandon Scott said the city recognizes that Baltimore’s property tax rate has long been a challenge and emphasized that this strategy works alongside broader housing affordability investments. The goal is to bring the effective residential property tax rate below $2.00 per $100 of assessed value within the year, CBS Baltimore reports.
To achieve this, the city plans to implement a three-part property tax relief strategy. The approach includes adjusting the Homestead Tax Credit, expanding the Targeted Homeowners Tax Credit, and increasing enrollment in existing state tax credit programs. Legislation to adjust the Homestead Tax Credit cap from 4 percent to 6 percent is expected to be introduced in the City Council, with implementation targeted for the 2027 tax season. State law allows local jurisdictions to set this cap anywhere between 0 and 10 percent, and Baltimore’s current rate has remained unchanged since the 1990s.
In addition, the city plans to increase funding for the Targeted Homeowners Tax Credit, which would lower the effective homeowner tax rate from $2.048 to $1.99 per $100 of assessed value. Officials say this change should offset potential increases tied to the Homestead adjustment, allowing many homeowners to see lower tax bills or remain financially neutral when the changes take effect in 2027. The proposal will be presented to the Board of Estimates as part of the city’s 2027 budget.
The second initiative addresses reforms to Baltimore’s tax sale process. Following an agreement with Maryland Legal Aid, the city plans to raise the minimum tax sale bid to a property’s assessed value to protect homeowners from losing equity. The proposal also includes establishing payment plans for eligible residents, a move that would require additional City Council approval.
