There has been a change in Maryland law that could restrict a homeowner’s eligibility for a $692 Montgomery County property tax credit. The new State law requires all residential property owners to also have an approved Homestead Application on file with the State Department of Assessments and Taxation (SDAT) to be eligible for the County’s Income Tax Offset Credit (ITOC). This credit appears on annual property tax bills.
The one-time application must be completed to keep the ITOC tax credit that was on July 1, 2022, tax bills. If an approved application is not on file by May 1, 2023, State law will require the County to recapture the $692 ITOC that was granted on your tax bill. Additionally, the ITOC tax credit itself will no longer appear on all future tax bills until there is an approved Homestead Application on file with SDAT.
The Homestead Application can be filed online or by mailing an application to SDAT.
To file an application online, a property owner will first need an Access Number issued by SDAT. To obtain an access number, email your name and address with the subject line of “Montgomery County Homestead Tax Credit” to firstname.lastname@example.org. Within a few days, SDAT will send the access number and directions for filing online.
To file an application by mail, complete the application form and mail it to the address listed on the form. The link to the paper application form can be found at https://dat.maryland.gov/SDAT%20Forms/Homestead_application.pdf.
Once an application has been filed, or if you believe you already have a Homestead Application on file with SDAT, check the status of your Homestead Application on the SDAT webpage at https://sdat.dat.maryland.gov/RealProperty/.
Between October 2022 and February 2023, SDAT will be changing its Homestead Application process and will no longer require the access number for the online application.