Please be advised that applications submitted by mail will take longer to process than applications submitted online. Please be certain your computer has the free Adobe Reader , or other PDF reader software available to access the application. Once completed, applications should be mailed to:
State Department of Assessments & Taxation Renters' Tax Credit Program P.O.Box 49006 Baltimore, MD 21297Please do not email any tax credit applications to the Department containing personal information, such as social security numbers and/or income tax returns. Instead, please mail your completed application and supporting documents to the Department, so your personal information remains confidential.
The property tax relief a renter may receive is based upon a comparison of the assumed real property tax in the yearly rent minus a percentage of the household income as shown here:
0% of the first $4,000 of income
2.5% of the next $4,000 of income
5.5% of all income in excess of $8,000
Estimating your own tax credit can be done by taking these three steps. Remember, the key to the plan is your rent in relationship to your income. The plan assumes that 15% of your occupancy rent goes toward the payment of property taxes. Occupancy rent does not include charges for heat, utilities, or any other fees paid with the rent.
Step 1: Find your 2022 income and tax limit from the chart in the next column.
Example: If your income is $11,000, your tax limit is $265.
Step 2: Take 15% of the total occupancy rent for the year 2022.
Example: A monthly rental of $300 would amount to $3,600 a year. Fifteen percent of $3,600 is $540.
Step 3: Subtract your tax limit amount from the assumed property tax.
Example: $540 15% of occupancy rent
-265 tax limit from chart
$275 amount of tax credit
The amount of the renters' tax credit will vary according to the relationship between the rent and income, with the maximum allowable credit being $1,000. Those found eligible for a credit as determined by the State Department of Assessments and Taxation will receive a check directly from the State Treasury. Anyone who is found ineligible will be notified in writing and given the reason why.
IMPORTANT : If 15% of your occupancy rent is more than the tax limit amount shown on the schedule below for your income, you are urged to file a Renters' Tax Credit application.
The Renters' Tax Credit Program provides property tax credits for renters who meet certain requirements. The plan was modeled after and designed to be similar in principle to the Homeowners' Tax Credit Program, which is known to many as the Circuit Breaker Program. The concept rests on the reasoning that renters indirectly pay property taxes as part of their rent and thus should have some protection, as do homeowners.
The plan is based upon the relationship between rent and income. If the portion of rent attributable to the assumed property taxes exceeds a fixed amount in relation to income, the renter can, under specified conditions, receive a credit of as much as $1,000. The credit is paid as a direct check from the State of Maryland.
The rented dwelling may be an apartment in an individual house or any type of apartment building, duplex, co-op, condominium, house trailer, or mobile home pad. The dwelling must be the principal residence in Maryland and the renter must live there at least six months of the year. You are only eligible to receive a tax credit for rent paid in the State of Maryland.
The applicant must have a bona fide leasehold interest in the property and be legally responsible for the rent. If the dwelling that is rented is owned by a tax exempt, charitable organization or is exempt in any way from property taxation, a tax credit cannot be granted.
COMBINED INCOMES: Credits are calculated according to total income, meaning all combined gross household income before deductions. This includes income from all sources, whether or not taxable for federal and state income tax purposes. It also includes Social Security as well as all other retirement benefits.
If you are age 60 or over or 100% disabled, use the chart below to determine if it is worthwhile for you to file an application.