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.