When money is tight, it can be tempting to put taxes on the back burner. But for low- to moderate-income Marylanders, a little planning – and the right information – can make a big difference. In fact, several tax credits exist that could save you thousands of dollars and even help you keep your home.
Below are key property tax and income tax credits you may qualify for – and steps you can take now to apply.
PROPERTY TAX CREDITS
Homeowners’ Tax Credit (HOTC)
The Homeowners’ Tax Credit is an income-based credit you must apply for every year. To qualify, the home must be your primary residence and your household income cannot exceed $60,000. Generally, the less you earn, the lower your property taxes will be.
Baltimore City residents can apply online, by mail or in person at the State Department of Assessments and Taxation (SDAT) between February and October 1. If you’ve never applied before – or if you applied in prior years but missed the current one – you have until April 15 to apply.
Many people don’t realize that heirs to a property may still be eligible for this credit, even if their name is not yet on the deed. Unfortunately, Maryland Volunteer Lawyers Service (MVLS) has seen heirs mistakenly turned away. If you are an heir and need help applying for HOTC, contact the MVLS Tangled Title Team at 443-451-4066.
Another lesser-known benefit: if you’re 70 or older, you can apply for retroactive HOTC credits for the past three years. For help with this process, reach out to the Securing Older Adult Resources (SOAR) Program.
Homestead Tax Credit
The Homestead Tax Credit is available simply for owning and living in your home. It places a cap on how much your property taxes can increase each year. There are no income requirements, and you only need to apply once.
To check whether you’re enrolled, visit the SDAT website or call 410-767-2165. Your property record will show whether the Homestead Credit is active. If not, you can apply online or submit an application by mail or in person at SDAT.
Veterans’ Property Tax Exemption
Disabled veterans may qualify for a full or partial exemption from real property taxes. To learn more about eligibility and how to apply, visit the Maryland Department of Veterans and Military Families website or call 800-446-4926, ext. 6450.
Baltimore City Employees Tax Credit
If you are a Baltimore City employee earning less than $56,994, you may qualify for a property tax credit of up to $2,500. Applications are accepted February 1 through March 31 and can be completed online.
Renters’ Tax Credit
Renters may also be eligible for a tax credit based on income and annual rent paid. To check eligibility and apply, visit the SDAT website or contact the Renters’ Tax Credit Program at 410-767-5915.
INCOME TAX CREDITS
Earned Income Tax Credit (EITC)
The Earned Income Tax Credit is one of the most valuable tax credits available to working families – yet many eligible people don’t claim it. If you earned less than $62,000 last year, it’s worth checking to see if you qualify.
The credit amount depends on your income and number of dependents. For 2025, families with three or more qualifying dependents could receive up to $8,046 on their federal return. Maryland also offers a state EITC, which can further increase your refund.
To find out if you qualify, use the IRS’ free EITC Assistant at https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit-eitcIRS.gov. This is a guided questionnaire that will go through all the relevant rules to let you know if you can claim the EITC. The Maryland Comptroller offers a similar tool (https://www.marylandcomptroller.gov/individuals/eitc.html) for state taxes.
If you are eligible, consider using free tax preparation services. Maryland 211 (dial 211 or visit the website) provides a list of free resources, including Volunteer Income Tax Assistance (VITA) sites and secure online filing options.
Act Now
With rising taxes and everyday costs stretching household budgets, these programs exist to help ease the burden. If you think you may qualify – even if you’re unsure –apply or ask for help. A single credit could mean the difference between falling behind and staying secure in your home.
Don’t leave money – or your housing stability – on the table.
John Hardt serves as director of the Low Income Tax Clinic at Maryland Volunteer Lawyers Service, and Morgan Murphy is the organization’s tangled title paralegal.