The Maryland Department of Assessments and Taxation announced last week its 2023 reassessment of 779,573 residential and commercial properties collectively known as “Group 2.” Overall, the statewide increase for this group over the past three years was 20.6 percent, higher than 2022’s 12 percent, and 96.4 percent of Group 2 residential properties saw a value increase.

In Maryland, SDAT’s Real Property Valuation Division values more than 2 million property accounts throughout the state. These properties are split into three groups, each of which is appraised every three years. The values are then certified to local governments, which use the assessments to collect property taxes.

Since the last Group 2 reassessment for January 2020, there was an average value increase of 22.2 percent for all residential properties and 15.8 percent for all commercial properties over the three-year period. All 23 counties and Baltimore City saw an increase.

In Dorchester County specifically, residential property values increased 25.5 percent, and commercial values increased 9.9 percent.

“This is a good indicator that the market remains strong and growth is steady here in Maryland,” said SDAT Director Michael Higgs.

The 2023 Group 2 property assessments were based on an evaluation of 89,880 sales made within the group in the past three years. If a property’s value was adjusted because of the reassessment, any increase in value will be added gradually over the next three years, while any value decrease will be fully effected in the 2023 tax year. Property tax assessment notices were mailed to Group 2 property owners on Dec. 27.

“As part of our Tax Credit Awareness Campaign,” said Higgs, “each reassessment notice includes information about the Homeowners’ and Homestead Tax Credits, which save Marylanders more than $260 million in taxes each year.”

The Homeowners’ Property Tax Credit Program allows credits against the homeowner’s property tax bill if the property taxes exceed a fixed percentage of the owner’s gross income. To qualify, the owner must live in the dwelling at least 6 months per year, and the combined gross household income cannot exceed $60,000. Income from all sources must be reported whether or not the monies received are included as income for federal and state tax purposes.

Residential property owners who complete a one-time application and meet certain requirements can also receive a Homestead Property Tax Credit, which limits the increase in taxable assessments on the principal residence each year to 10 percent or less.

For more information about assessments, contact Public Information Officer Meghann Malone at meghann.malone@maryland.gov or 410-767-0365, or Supervisor of Assessments JoAnn Kuneman at sdat.dor@maryland.gov or 410-228-3380. For additional questions regarding the Homeowners’ Tax Credit, email sdat.homeowners@maryland.gov or call 410-767-5900.