In 2026, the 449th Maryland General Assembly session convened on January 14th and adjourned on April 13th. Maryland REALTORS® issues a recap of all of the pertinent legislation affecting the real estate industry. Below is a summary of the “Tax Rates and Credits” related legislation that passed.
HB 1330 Homeowners’ Property Tax Credit – Year–Round Application – Effective 10/1/26
This bill allows homeowners to apply for the homeowners’ property tax credit on a year-round basis beginning in FY 2028 (taxable year 2027).
HB 753 Tax Sales - Homeowner Protections– Effective 10/1/26
The bill protects homeowners with serious illness or hardship from losing their homes in tax sales and gives them priority for assistance. It also raises the home value limit to qualify for help from $300,000 to $450,000. Homeowners choose someone to work with the State Tax Sale Ombudsman on their behalf.
SB 765/HB 1148 Property Taxes - Tax Sales, Legacy Protection Program, & Tax Credits– Effective 10/1/26
Establishes the Legacy Protection Program within SDAT for the purpose of (1) allowing heirs who inherit a dwelling to become the record title holder of the dwelling; (2) preventing tax sales of dwellings inherited by heirs; and (3) allowing heirs to remain in their homes.
HB 1096 Property Tax Credits - Notice Through Property Tax Bill – Effective 10/1/26
Requires each county tax collector to include with the property tax bill a website address or QR code for a county government webpage that lists each property tax credit available to taxpayers and a brief explanation of how to apply.
SB 194 Income and Property Tax Incentives - Members & Veterans of the Space Force – Effective 7/1/26
Makes members and veterans of the U.S. Space Force eligible for existing tax credits or exemptions, including the property tax exemption for disabled veterans, disabled active‐duty service members, and surviving spouses, and the property tax credit for disabled veterans and surviving spouses.
HB 842 Property Tax Credit - Surviving Spouse of Military Service Member – Effective 6/1/26
Allows local governments to offer a property tax credit to surviving spouses of service members who don’t qualify for an existing exemption. Localities can decide the credit amount, how long it lasts, eligibility rules, and application procedures.
HB 1611 Credit for Dwelling of Disabled Veterans and Surviving Spouses – Eligibility – Effective 6/1/26
Beginning in fiscal 2027, the bill raises the income limits for a local property tax credit for certain disabled veterans and surviving spouses from $100,000 to $150,000 for individual filers and $300,000 for joint filers.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
