Real Property Assessments

The triennial assessment cycle, or three-year reassessment cycle, means that approximately one-third of the properties are reassessed in each jurisdiction each year. Properties are reassessed once every three years, and property owners are notified of any change in their assessment in late December. Counties contain 3 reassessment regions (cycles), which allows for approximately 1/3 of the property accounts to be reassessed each year.

In Maryland, there are more than two million property accounts. The Department of Assessments and Taxation must appraise each of these properties once every three years.

Assessments are certified by the Department to local governments where they are converted into property tax bills by applying the appropriate property tax rates. An assessment is based on an appraisal of the fair market value of the property. An appraisal is an estimate of value.

Assessors

Assessors are the appraisers who estimate the value of the property for tax purposes. Assessors are trained to use standard appraisal approaches and techniques to determine the appraisal estimate. The Department of Assessments and Taxation must appraise each property once every three years. To accomplish this task, the Department employs and trains assessors to inspect, analyze markets, and value real estate. Assessors must be familiar with local property characteristics that affect value.

Fair market value

Article 15 of the Declaration of Rights of Maryland's Constitution requires that all property be assessed and taxed uniformly. State law specifically requires that all taxable property shall be assessed based on its fair market value. The courts have also interpreted this requirement to mean that assessments must be based on the fair market value of the property.

Uniformity

Properties in Maryland are required to be assessed and taxed in a like manner. The courts have held that the standard for uniformity is fair market value.

Fair Market value appraisal

There are three accepted approaches to market value:

1. the sales approach
2. the cost approach
3. the income approach

The sales approach and the cost approach are the two appraisal approaches used by assessors to estimate fair market value for residential properties. Assessors in Maryland use a blend of both the sales and cost approaches to appraise residential property. The value of the land is based on the sales approach. However, when limited land sales data is available an allocation, or percentage, method may be used. The value of the dwelling is estimated using the cost approach applied with a neighborhood adjustment factor. The neighborhood adjustment factor is created by analyzing sales of similar modeled dwellings in similar market areas.

The income approach is appropriate for properties that produce an income stream from rent or lease agreements.

While differing in the method of calculation, each approach is designed to indicate the property's fair market value. 

Sales approach

• The sales approach is one of the three generally accepted approaches to determining a residential property's fair market value.
• Sales data is reviewed and applied to properties to determine the fair market value.
• The premise of the sales approach is that a purchaser would pay no more for a property than the amount of money needed to purchase a comparable property.
• The fair market value of a given property (called the subject property) may be determined by examining the sale prices of comparable properties.
  • If similar properties sold for approximately $100,000, you can assume that other comparable properties would sell in the $100,000 range.
• The key to the sales approach is comparability and the availability of sufficient data.

Cost approach

• The cost approach is also one of the three generally accepted approaches to determining a residential property's fair market value. 
• The cost approach is that the fair market value of a given property equals the total of the cost to construct a similar improvement, less any depreciation for age and condition, and the price of the land.
  • For example, if the cost to construct an 1,800 square foot rancher is $70,000, the cost approach assumes that a prospective purchaser would not pay more than $70,000, plus the cost of the land, for a home which is already built. If the existing house were not new, it may sell for less than $70,000. In general, the older the house, the greater the loss in value due to depreciation. A house which is 10 years old will usually sell for less than a comparable house which was recently built.

Income approach

• The income approach is only used for commercial rental or leased properties.
• It rests on the premise that a purchaser of a commercial property will pay no more than the property is worth as an investment, and the seller will accept no less than it is worth as an investment.

Property Assessment Worksheet

The property record card for each parcel of real estate. It contains information on ownership, legal description, land and building valuation, and sales data for that parcel. A customer may obtain a copy of their property worksheet at any time from their local assessment office. The property worksheet details the improvements and land maintained on the account by the assessment office. The property worksheet also contains information, including a description of the property, as well as calculations made to reach the appraisal estimate. Area Sales Listing: A document that summarizes the comparable sales for a specific area or group of properties that was used in the analysis of sales.

Real Property Assessment data and filings are free

The Maryland Depart​ment of Assessments & Taxation never charges a fee to property owners requestin​g a copy of their property assessment worksheet or to file an appeal of their property assessment. You may obtain p​ublic​ly available assessment data at no charge by using our Real Property Search.

The Department's Petition for Review or New Owner Appeal form - PDF - 810.48 KB can be filed free of charge.  ​Please be aware of any unsolicit​ed mail offering to provide you with your assessment records or to file an appeal on your behalf for a fee.

Tax Exemption Application and Forms are available online or by contacting your local Department of Assessments and Taxation office. Completed forms must be returned to the local assessment office where the property is located.

The phase-in value is the increase in assessment from one reassessment to another is spread (phased-in) equally over the three-year period between reassessments.

For any increase in the full cash value of a property, state law requires that the increase in value over the old assessment is "phased-in" over the next three years. Use,​ as an example, a new appraisal of $130,000 compared to an old appraisal of $100,000. In this example, the new appraisal is $30,000 higher than the old appraisal. That $30,000 increase is "phased-in" equally over the next three years: 1st year, $110,000; 2nd year, $120,000; and 3rd year, $130,000.

Land Value

The location of the land is a major factor in determining its value. For example, land located near the water is generally more valuable than land located inland. Likewise, land located near an urban center is usually more valuable than land located miles away. Land sales are reviewed and analyzed by assessors in order to determine location factors. In the absence of sufficient land sale information, assessors estimate the value of the land using an allocation or percentage method. This method employs the valuation of the total property, using property sales of similar houses, and then separating land and improvement values based on a percentage of the total for each component. Depending on the size and/or type of parcel, the land is reflected as square feet, acres, or number of building sites.

Land Rates

A dollar rate that, when multiplied by the area of a parcel of land, will produce a land value. Rates are derived from an analysis of comparable land sales or an allocation method. The property worksheet indicates the manner in which the land value was calculated, specifying the size of the parcel and the rates used. Typically, the same rate is used for the minimum building lot size for similar lots. Rates may vary depending on size, location, and zoning. A lot which is larger than the minimum building lot size required by the zoning will be valued at more than one rate. One rate will be for the minimum area needed to build a house and the other rate(s) will be for the land area in excess of what is needed to build. The first rate is known as the "primary" rate and produces the basic home site value. Additional rates for the "excess land” are typically lower than the "primary" rate and will sometimes reduce as the size of the parcel increases.

The property worksheet includes administrative data and details of the dwelling; including information as to the year built, quality, condition, size, and additional items such as decks, bathrooms, fireplaces, or air conditioning. Listed on the property worksheet are the basic rates per square foot or any flat charges used for each component of the building (improvement). Multipliers, factors, depreciation, and other adjustments are also enumerated. 

Common factors listed on the worksheet are described below:

• Neighborhood Adjustment: The multiplier used to link the cost and sales approaches to value. It is applied to the value indicated by the cost approach to adjust for market conditions.
• County Multiplier: The multiplier that is used specifically for a region of the state in order to update its cost and market factors to the current time.
• Quality Factor: The index applied to the dwelling based on its quality of construction.

The "Neighborhood Adjustment" noted on the worksheet (formerly known as Market Value Index or MVI) represents the blend between the sales and cost approaches noted previously. The multiplier used to link the cost and sales approaches to value. It is applied to the value indicated by the cost approach to adjust for market conditions. The “Neighborhood Adjustment” allows for market factors to be applied and influence the value of the dwelling. This adjustment factor provides for adjustments based on elements such as the market location of the dwelling within the jurisdiction, the demand for the model type of home, and the overall housing market.
 

A sales analysis of the neighborhood(s) and dwelling model(s) is completed at each reassessment cycle in order to determine the Neighborhood Adjustment. For example, assume that the cost approach indicates a value for a dwelling of $70,000. However, an analysis of sales in the area reveals that this particular model of dwelling has been attractive in the real estate market in recent years and is actually selling for $77,000, plus the value of the land. A "Neighborhood Adjustment" of +10% would be used to adjust the cost to the market of $77,000. The "Neighborhood Adjustment" is expressed as a decimal ($70,000 x 1.10 = $77,000). The "Neighborhood Adjustment" is also used to reduce the cost estimate if an analysis of sales indicates that the market is less than the cost estimate. If the market analysis indicated that the dwelling was selling for approximately $63,000, an "MVI" of .90 would be needed ($70,000 x .90 = $63,000). 

County Multiplier

The "County Multiplier" noted on the worksheet is a regional multiplier that is applied to the cost. This accounts for regional differences in cost and market throughout Maryland. 

Quality Factor

The “Quality Factor” noted on the worksheet is an index applied based on the quality selection of the dwelling. The quality selections are based on a numerical scale of 1-9. The amount of customizations and features within a dwelling; the dwelling’s design and architecture; and the construction materials and methods used in construction of the dwelling are a few of the considerations that aid in determination of the quality selection.

An area sales listing is a listing of property sales in a given area or neighborhood that have occurred during a specified time. In Maryland, all property transfers are recorded with the Clerk of the Court for the County in which the property is located. These recorded transfers are copied to local assessment offices for updating of Departmental records. These transfers are reviewed, and the transfers that are considered to be arms-length in nature and representative of the market area are then used in a sales analysis.  The sale transactions that have been used by the Department are included on the area sales listing report. All transactions can also be viewed by going to our website and using the real property search of sales.

For each residential property, the following characteristics are identified:

1. Property Site Address
2. Residential Property Type – Split Level, Split Foyer, Standard Unit Detached Dwelling, Townhouse End Unit, Townhouse Center Unit, Condo, etc.
3. Stories – Split Foyer, 1 Story No Basement, 1 Story With Basement, 2 Story No Basement, 2 Story With Basement, etc.
4. Quality – Construction Quality based on a numeric scale of 1-9.
5. Actual Year Built
6. Enclosed Area - Area which is above ground level. Finished areas in the attic or basement are NOT included in the Enclosed Area calculation. Any above grade area of the dwelling that has been adjusted for an unfinished portion is NOT deducted from the Enclosed Area calculation. If more than one dwelling exists on an account, the Enclosed Area calculation will reflect the combined area of all dwellings.
7. Land Area - Total land area is expressed in square feet, acres, or simply as the number of building sites.
8. Sales Date
9. Sales Price
10. Account Number

How SDAT uses sales listing information

The sales for market areas are analyzed as a part of our valuation process. Residential property is valued using both a cost model and a sales comparison model. The basic concept of the sales comparison model is that the estimated market value of a property equals the sale price of a comparable property after adjustments for differences are made. For example, if property X has a garage but the comparable property has none, the value of the garage would be added to the sale price of the comparable property. The result would be evidence of what property X’s selling price might be. Assessors use more than one comparable to determine values using the sales approach. By using statistical models, similar properties in similar markets are analyzed so that a neighborhood adjustment factor can be derived at the reassessment. Rather than considering properties one at a time, assessors use mass appraisal techniques and computer software to appraise many properties of the same general type. This listing represents one part of the total process to determine market value.

The Department also uses the sales listing as a quality control measure. For assessments, one measurement of quality is the ratio of the assessed value to the sales price. Simply stated, a ratio is the relationship of two numbers. The assessed value (the Department’s estimated market value) divided by the sale price will provide the ratio. This allows assessors to measure how closely their assessed values compare to the actual sale prices.

How customers can use sales listing information

The customer can use the sales listing as a tool to compare their property to similar properties that have recently sold in their neighborhood or surrounding area. The best indicator of fair market value is market activity. Buyers and sellers create market values by their transactions. In an appeal, the best evidence of market value is sale price - the sale price of the subject property or of similar properties.

Go through the area sales listing to find properties that are most similar to the property in question. Compare the market value of the property in question to the prices at which the similar properties have sold. Remember, sale dates are also important when comparing values. Assessed values are as of January 1 of the year indicated on the report, while sale prices are as of the date of sale. The real estate market is constantly changing. Therefore, the most recent sales of comparable properties typically offer the best evidence of market value.

An assessment is an estimate of the current market value of your property as determined by the Department of Assessments and Taxation. Local governments will apply their tax rates to the assessment in determining your annual property tax bill.​

The new market value of which you are being notified is the estimate of the market value based on a cost and sales comparison analysis. Very simply stated the cost approach is the estimated value of the land plus an estimate of the cost to rebuild the structures (less depreciation). The sales approach is an estimate of value based on recent sales of comparable properties.​

The figures on the assessment notice are to advise property owners of their old and new market values and possible credits. Reading the notice narrative can help you better understand the assessment process. A more detailed explanation is available above under "Assessment Notice".​

Comparable properties are recently sold properties that are similar to the property being appraised. The closer they resemble a property, the more the sale price represents the value of the unsold property.​

The increase in your assessment from the old market value to the new market value is equally divided over three years. The phase-in is designed to spread your property value increase over the next three years so that the full increase will not be subject to taxes in one year. This is not a projection of the market value of the property at a future date.​

Property is reassessed every 3 years so each property owner pays their appropriate share of local taxes. Property values rise and fall over time. Reassessment is necessary to reflect the current market value of property.​

The Homeowners' Tax Credit Program is a State property tax relief program that allows a property tax credit to households whose total gross income is below a standard set by law. This program provides property tax credits for homeowners of all ages depending on their incomes. In addition to the State's program, local governments can now supplement the amount subsidized by the State.​

Each county and municipality is required to limit taxable assessment increases to 10% or less over the prior year's taxable assessment. The lower the percentage set by a local government, the greater the savings to the property owner. If, for example a county sets a 4% assessment cap, the local tax bill will increase by no more than 4% over the previous year's tax bill if the county uses the same tax rate. If the county uses the Constant Yield Tax Rate, your tax bill will be even less.​

The Homestead Property Tax Credit, commonly referred to as the Assessment Cap, is a program for homeowners who qualify that limits the taxation of large annual assessment increases on a property owner's principal residence. For State tax purposes any annual assessment increase for a home or homesite that is greater than 10% is not taxed. Counties and municipalities may limit assessment increases for local tax purposes to less than 10% annually.​

The State Department of Assessments and Taxation (SDAT) is required by law to establish a Constant Yield Tax Rate for each county and local jurisdiction. This is an important consumer protection tool for notifying ​​homeowners when jurisdictions decide to raise more revenue.

As property values rise, total tax revenues increase if counties choose to adopt a tax rate that exceeds the Constant Yield Tax Rate. Any increase in revenue that is generated by adopting a real property tax rate that is higher than the Constant Yield Tax Rate is a tax increase, even if the adopted tax rate is the same as the previous year's tax rate.

While SDAT assesses the value of your property, the jurisdiction determines how much tax you will pay.

*Example:* The total taxable assessment for Kent County was $3,000,000,000 on 7/1/2020. The tax rate was $1.022 per $100 of assessed value resulting in real property tax revenue for Kent County of $30,660,000.

Kent County decided to maintain the current tax rate and not adopt the Constant Yield. The total taxable assessment for Kent County was $4,000,000,000 on 7/1/2021. Maintaining the current tax rate generated $40,880,000 which is a tax increase of $10,220,000 in new tax revenue.

If Kent County decided to adopt the Constant Yield Tax Rate, it would have maintained the current tax revenue of $30,660,000.​​

Your tax bill is based on the spending needs of your local county or municipal government. An increase in the assessment does not necessarily cause an increase in taxes. Your tax bill is a direct result of your local subdivision's budgetary needs.​

The Department of Assessments and Taxation appraises property as a service to local governments. The Department is not involved with the establishment of local tax rates upon which the tax bill is calculated. Therefore, your questions concerning taxes must be directed to your local officials.​

Owners may appeal the total new market value within 45 days from the date on the notice. The decision to appeal should be based upon whether the Total Market Value (the value of the land and building together as a whole) reflects the market value of the property. For your convenience, your appeal may be submitted in writing, discussed in a telephone hearing, or in a personal hearing with an assessor.​

There is an appeal form included with your assessment notice that explains the appeals process. Instructions are included to help you complete the form.​

The hearings at the first level (Supervisor's level) are informal. An assessor will verify property data and explain the basis of the assessment. It is an opportunity for the property owner to identify errors in the assessment or provide additional information regarding the property.​

The value of your house may increase due to inflation and other normal factors that impact the real estate market. Your property is valued every three years. The new market value reflects the changes in the real estate market from the time it was last valued.​

Yes, if you are not satisfied with the decision made as a result of the Supervisor's hearing, you may appeal further to the Property Tax Assessment Appeal Board and then to the Maryland Tax Court. Both are separate and independent agencies from the Department of Assessments and Taxation.​

The current valuation reflects the changes in the real estate market since you purchased the property. Sales that have taken place in the last three years indicate that the market value of your property has increased.​

The Department constantly monitors the market statewide. All sale transactions are processed through the local assessment offices as deeds are recorded. Each property's sale price is compared to its assessment. The Department reduces assessments if a downward trend occurs.​

An appraisal made for fire insurance purposes does not include the land.​

Land is valued based on the market or comparative sales approach and the allocation approach. Sale properties are analyzed and compared. Units of comparison such as square feet, acreage and front foot are used to develop land value from the sale properties. These land values are then applied to non-sale properties based on their comparability.​

Market conditions are reflected in the land values. When valuing building lots, small building lot size does not usually indicate a significant difference in the lot value. Factors such as location and topography can affect the land value.​

When valuing property all economic and physical factors affecting value are analyzed. The land rates and improvement values reflect the various individual differences in properties. Waterfront land rates normally differ depending on many factors such as water depth and location.​

The land value attributed to an individual condominium is based on the principle of allocation. A percentage of the total value is assigned to the land.​

SDAT Real Property Division conducts property assessments; provides assessment roll information; and maintains our records based on the official records recorded among Land Records.

The Maryland Department of Planning (MDP), Planning Data and Research Unit, is responsible for maintaining tax maps for the 23 counties in Maryland. Tax Maps are meant to provide a graphic representation of real property by reflecting individual property boundaries in relationship to contiguous real property. 

The maps provided by MDP are NOT to be construed or used as a "legal description." It is not a survey product and not to be used for the design, modification, or construction of improvements to real property or for flood plain determination. MDP does not provide an guaranty of accuracy or completeness regarding the map information. Any errors should be reported to the Maryland Department of Planning, Planning Data and Research Unit.

​Tax Property Article 2-211(b)(1) requires that the owner of a tax account be shown on our Department's records. Our records reflect the ownership of property listed within the deeds that are officially recorded among the County's Land Records. Our Department cannot control how third party website searches reflect the address information of an individual or obtain the information they use for their online searches.

If you would like your name to be concealed with the property that you reside at for our records and still be qualified as your principle residence for homestead credits, you could create a trust and list yourself and others as the beneficiaries​. A new deed would then need to be recorded in Land Records with your property transferred into that trust. You would need to consult with an attorney for more information on how to go about this process.

​Under Tax-Property Article, § 8-105(b) the Supervisor of Assessments is authorized to collect actual income and expense information relative to income producing properties during our reassessment review.  This information is used in valuing property by the capitalization of income method.  In order to obtain reliable information and assist in the uniform and accurate valuation of income-producing properties, owners are requested to submit their actual income and expense information for their respective property. This information is required by the required deadline for real property with an assessed value over $5,000,000 or a penalty may result.

Pursuant to Tax-Property Article § 14-508(a), if a property owner fails to submit the required income and expense information, the owner may not challenge the value of the property on the basis of the capitalization of income method beyond the supervisor level of appeal, unless the property owner provides the actual income and expense information at the supervisor level.​

If you have a mortgage, your lender typically pays your property taxes annually from your escrow account. Part of your monthly payment to your lender, or escrow agent, includes an amount equal to one-twelfth of your annual property tax bill. By switching from one to two payments, you will create a one-time surplus in your escrow account that must be returned to you. Technically, this is not a tax refund, but a refund of surplus funds in your escrow account.​

As of in July of 2000, the taxes for your primary residence will be paid in two installments: one by September 30, and one by December 31; you still have the ability to elect a one-payment schedule.​

To reduce closing costs for home buyers. By moving to a two-payment property tax system, persons buying homes will pay less property tax at settlement.​

Nothing. Your escrow agent annually calculates the amount needed to pay property taxes, insurance, and other charges for the next year for your property. Each year you receive a copy of that escrow analysis. If there is a surplus in your escrow account, the escrow agent will send you a check for that amount. The timing of the escrow analysis and the resulting payment of any surplus amounts varies by lender, but is frequently done after the end of the calendar year.​​

Under the two-payment plan, the local governments may add a service fee of up to 1.65% of the second payment to your tax bill. This amount is to compensate the local government for lost interest and additional administrative expenses of sending two tax bills. This fee will be added to the second payment.

You can get a rough idea of the amount of surplus escrow funds that will be rebated as follows:

1. Look at your last tax bill, and find the amount for your property taxes only. Do not include additional fees that may be on your tax bill such as front-foot assessments, trash collection, or other taxes not based on the assessment on your home.
2. Divide that amount by 12. This is roughly what you pay in property taxes each month to your lender.
3. Find your county in the list below to get the multiplier:

Multiply your monthly property tax amount by the multiplier shown in the box above to get an estimate of the amount of your refund.

Tax payments are generally made by lenders at the latest date possible. Some counties offer a discount for paying the tax bill before September 30. If a county offers this discount, federal law requires your escrow agent to take advantage of it because it saves you money. Since everyone's second payment will be due by December 31, and the first payments are made at different times, there is a difference in the number of months between the two payments. The refund you get is based on the amount of time between the first payment and the second payment.

Note: Not all of the provisions of this law apply in Frederick County, for which there is a different statutory arrangement for property tax payments. Contact your lender to find out how and when your taxes will be paid and what effect any change may have on your escrow account.​

If other fees are sent on the same bill along with your property tax, such as garbage collection, sewer & water, or other fees, they may all be due with the first half of your tax.

If you have questions about your property tax assessment contact your local assessment office.

For tax payment information contact your county finance (or treasurer/ comptroller) office.​​

There are other items that may be paid by your escrow agent. The most common is your homeowners insurance premium. If your insurance premium goes up, this will reduce the surplus in your escrow account, and thus the refund you will get. Also, if your property assessment is increasing, and your local government does not reduce taxes to offset this increase, your taxes will go up, reducing your refund. Local governments that do not decrease their tax rate to offset the increase in assessments are required to publish advertisements in a local newspaper advising property owners that their taxes will be increasing. This information will also be included on your tax bill under the heading "Constant Yield Tax Rate."​

Under Tax-Property Article, § 8-105(b) the Supervisor of Assessments is authorized to collect actual income and expense information relative to income producing properties during our reassessment review.  This information is used in valuing property by the capitalization of income method.  In order to obtain reliable information and assist in the uniform and accurate valuation of income-producing properties, owners are requested to submit their actual income and expense information for their respective property. This information is required by the required deadline for real property with an assessed value over $5,000,000 or a penalty may result.

Pursuant to Tax-Property Article § 14-508(a), if a property owner fails to submit the required income and expense information, the owner may not challenge the value of the property on the basis of the capitalization of income method beyond the supervisor level of appeal, unless the property owner provides the actual income and expense information at the supervisor level.​

Learn more about the Maryland General Assembly Statutes related to SDAT. 

• Code of Maryland Regulations (COMAR) - Title 18
• Md. Code Ann., Tax-Property Title 6
• ​Md. Code Ann., Tax-Property Title 7
• ​Md. Code Ann., Tax-Property Title 8
• ​Md. Code Ann., Tax-Property Title 9

View Real Property Reports including Sales Data, Tax Rates, AIMS, Constant Yield Tax Crate Reports, Reassessment Reports, Residential Cost Rates, Ratio reports, and more on our Reports page. 

• 2026 Residential Cost Rates - PDF - 193.38 KB
• 2025 Residential Cost Rates - PDF - 181.23 KB​
• 2024 Residential Cost Rates​ - PDF - 146.64 KB
• Explanation of Commercial Maryland Cost Worksheet - PDF - 499.65 KB
• Explanation of Residential Maryland Cost Worksheet - PDF - 548.59 KB
• Residential Grade Definitions - PDF - 86.06 KB​​
• Residential Worksheet Request Form - PDF - 643.41 KB

Department of Housing & Community Development

• Foreclosure Assistance
• Ground Rent Redemption Loan Program
• Maryland Mortgage Program

Department of Planning​

• Order Prop​erty Tax Maps & Other Products