Title 6. Taxable Property; Imposition of Tax; Setting Tax Rates — Subtitle 3. Setting Property Tax Rates
Statutes in effect as of October 1, 2026.
Md. Code Ann., Tax-Prop. § 6-301 (2026)
Title 6. Taxable Property; Imposition of Tax; Setting Tax Rates
Subtitle 3. Setting Property Tax Rates
§ 6–301LinkCopy Citation
(a)
Except as provided in subsection (b) of this section, the Board of Public Works annually shall set the rates for State property tax for the next taxable year as authorized by the General Assembly.
(b)
(1)
Intangible personal property is subject to State property tax as otherwise provided in this title at the rate set annually by the Board of Public Works under subsection (a) of this section, if:
(i)
the intangible personal property has paid interest or dividends during the 12 months that precede the date of finality;
(ii)
interest or dividends were withheld on the intangible personal property during the 12 months that precede the date of finality to avoid the tax under this subsection;
(iii)
the intangible personal property consists of newly issued bonds, certificates of indebtedness, or evidences of debt on which interest is not in default; or
(iv)
a stock dividend has been declared on the intangible personal property during the 12 months that precede the date of finality.
(2)
The State property tax rate for the intangible personal property may not exceed 15 cents for each $100 of an assessment.
Md. Code Ann., Tax-Prop. § 6-302 (2026)
Title 6. Taxable Property; Imposition of Tax; Setting Tax Rates
Subtitle 3. Setting Property Tax Rates
§ 6–302LinkCopy Citation
(a)
Except as otherwise provided in this section and after complying with § 6–305 of this subtitle, in each year after the date of finality and before the following June 20, the Mayor and City Council of Baltimore City or the governing body of each county annually shall set the tax rate for the next taxable year on all assessments of property subject to that county’s property tax.
(b)
(1)
Except as provided in subsection (c) of this section and §§ 6–305 and 6–306 of this subtitle:
(i)
there shall be a single county property tax rate for all real property subject to county property tax except for operating real property described in § 8–109(c) of this article; and
(ii)
the county tax rate applicable to personal property and the operating real property described in § 8–109(c) of this article shall be no more than 2.5 times the rate for real property.
(2)
Paragraph (1) of this subsection does not affect a special rate prevailing in a taxing district or part of a county.
(c)
(1)
The Mayor and City Council of Baltimore City or the governing body of a county may set a special rate for a vacant lot or improved property cited as vacant and unfit for habitation or other authorized use on a housing or building violation notice.
(2)
On or before December 1 each year, the Mayor and City Council of Baltimore City or the governing body of a county that enacts a special rate under paragraph (1) of this subsection shall report to the Department of Housing and Community Development and, in accordance with § 2–1257 of the State Government Article, to the General Assembly on:
(i)
the special rate set under paragraph (1) of this subsection;
(ii)
the number of properties to which the special rate applies;
(iii)
the revenue change resulting from the special rate;
(iv)
the use of the revenue from the special rate; and
(v)
whether properties subject to the special rate are viable for adaptive reuse, as defined in § 1–102 of the Housing and Community Development Article, and plans to convert viable properties.
(d)
The Mayor and City Council of Baltimore City may, by law, impose on real property that would otherwise be exempt from property tax under § 7–202 or § 7–204 of this article the general property tax rate set under subsection (b)(1)(i) of this section and the special rate authorized under subsection (c)(1) of this section if the real property is:
(1)
a vacant lot; or
(2)
improved property cited as vacant and unfit for habitation or other authorized use on a housing or building violation notice.
Md. Code Ann., Tax-Prop. § 6-303 (2026)
Title 6. Taxable Property; Imposition of Tax; Setting Tax Rates
Subtitle 3. Setting Property Tax Rates
§ 6–303LinkCopy Citation
(a)
(1)
Except as provided in paragraph (2) of this subsection, in each year after the date of finality and before the following June 20, the governing body of each municipal corporation annually shall set the tax rate for the next taxable year on all assessments of property subject to municipal corporation property tax.
(2)
If not otherwise prohibited by this article, the governing body of a municipal corporation may set special rates for any class of property that is subject to the municipal corporation property tax.
(b)
The governing body of a municipal corporation may change a property tax rate that is fixed in its charter if:
(1)
the rate causes a loss of revenue because of exemption of property that is subject to the tax rate; or
(2)
a loss of revenue is caused by any special rate of municipal corporation property tax.
(c)
(1)
Unless otherwise provided by the governing body of the municipal corporation:
(i)
there shall be a single municipal corporation property tax rate for all real property subject to municipal corporation property tax except for operating real property described in § 8-109(c) of this article; and
(ii)
the municipal tax rate applicable to personal property and the operating real property described in § 8-109(c) of this article for taxable years beginning after June 30, 2001 shall be 2.5 times the rate for real property.
(2)
Paragraph (1) of this subsection does not affect a special rate prevailing in a taxing district or part of a municipal corporation.
Md. Code Ann., Tax-Prop. § 6-304 (2026)
Title 6. Taxable Property; Imposition of Tax; Setting Tax Rates
Subtitle 3. Setting Property Tax Rates
§ 6–304LinkCopy Citation
If a special rate of county or municipal corporation property tax is provided by this subtitle, that rate may be applied to the appropriate assessment of property without the Mayor and City Council of Baltimore City or the governing body of the county or of the municipal corporation passing a law to set that rate.
Md. Code Ann., Tax-Prop. § 6-305 (2026)
Title 6. Taxable Property; Imposition of Tax; Setting Tax Rates
Subtitle 3. Setting Property Tax Rates
§ 6–305LinkCopy Citation
(a)
In this section, “tax setoff” means:
(1)
the difference between the general county property tax rate and the property tax rate that is set for assessments of property in a municipal corporation; or
(2)
a payment to a municipal corporation to aid the municipal corporation in funding services or programs that are similar to county services or programs.
(b)
This section applies only in:
(1)
Allegany County;
(2)
Anne Arundel County;
(3)
Baltimore County;
(4)
Garrett County;
(5)
Harford County;
(6)
Howard County;
(7)
Montgomery County; and
(8)
Prince George’s County.
(c)
The governing body of the county shall meet and discuss with the governing body of any municipal corporation in the county the county property tax rate to be set for assessments of property in the municipal corporation as provided in this section. After the meeting if it can be demonstrated that a municipal corporation performs services or programs instead of similar county services or programs, the governing body of the county shall grant a tax setoff to the municipal corporation.
(d)
In determining the county property tax rate to be set for assessments of property in a municipal corporation, the governing body of the county shall consider:
(1)
the services and programs that are performed by the municipal corporation instead of similar county services and programs; and
(2)
the extent that the similar services and programs are funded by property tax revenues.
(e)
The county property tax rate for assessments of property located in a municipal corporation is not required to be:
(1)
the same as the rate for property located in other municipal corporations in the county; or
(2)
the same as the rate set in a prior year.
(f)
(1)
At least 180 days before the date that the annual county budget is required to be approved, any municipal corporation in the county that desires that a tax setoff be provided shall submit to the county a proposal that states the desired level of property tax setoff for the next fiscal year.
(2)
(i)
A request submitted under paragraph (1) of this subsection shall be accompanied by:
(1)
a description of the scope and nature of the services or programs provided by the municipal corporation instead of similar services or programs provided by the county; and
(2)
financial records and other documentation regarding municipal revenues and expenditures.
(ii)
The materials submitted under subparagraph (i) of this paragraph shall provide sufficient detail for an assessment of the similar services or programs.
(3)
After receiving a proposal from a municipal corporation requesting a tax setoff under this subsection, the governing body of the county shall promptly submit to the municipal corporation financial records and other documentation regarding county revenues and expenditures.
(g)
(1)
At least 90 days before the date that the annual county budget is required to be approved, the county and any municipal corporation submitting a tax setoff request under subsection (f) of this section shall designate appropriate policy and fiscal officers or representatives to meet and discuss the nature of the tax setoff request, relevant financial information of the county and municipal corporation, and the scope and nature of services provided by both entities.
(2)
A meeting held under paragraph (1) of this subsection may be held by the county representatives jointly with representatives from more than one municipal corporation.
(3)
(i)
The county officers or representatives may request from the municipal corporation officers or representatives additional information that may reasonably be needed to assess the tax setoff.
(ii)
The municipal corporation officers or representatives shall provide the additional information expeditiously.
(h)
(1)
At or before the time the proposed county budget is released to the public, the county commissioners, the county executive of a charter county, or the county council of a charter county without a county executive shall submit a statement of intent to each municipal corporation that has requested a tax setoff.
(2)
The statement of intent shall contain:
(i)
an explanation of the level of the proposed tax setoff;
(ii)
a description of the information or process used to determine the level of the proposed tax setoff; and
(iii)
an indication that, before the budget is enacted, appropriate officials or representatives of the municipal corporation are entitled to appear before the county governing body to discuss or contest the level of the proposed tax setoff.
(i)
Representatives of each municipal corporation in the county requesting a tax setoff shall be afforded an opportunity to testify before the county governing body during normally scheduled hearings on the county’s proposed budget.
(j)
Notwithstanding the provisions of subsections (d), (f), and (g) of this section:
(1)
a county and one or more municipal corporations may enter into an agreement setting different terms or timing for negotiations, calculations, or approval of a tax setoff; and
(2)
a county may grant a tax setoff to a municipal corporation that does not make a request in the fashion described in this section.
(k)
(1)
On or before October 31 each year, the governing body of Prince George’s County shall complete a report that includes:
(i)
the amount of the tax setoff granted to each municipal corporation in the current fiscal year;
(ii)
in the form provided by each municipal corporation, a detailed description of the scope and nature of the individual services or programs provided by each municipal corporation instead of similar services or programs provided by the county; and
(iii)
a detailed description of the methodology used by the county to determine the amount of the tax setoffs, including any formulas.
(2)
Notwithstanding any other provision of law, the report required under this subsection shall be:
(i)
available to municipal corporations in Prince George’s County on request; and
(ii)
submitted to the Prince George’s County House Delegation and the Prince George’s County Senators.
Md. Code Ann., Tax-Prop. § 6-305.1 (2026)
Title 6. Taxable Property; Imposition of Tax; Setting Tax Rates
Subtitle 3. Setting Property Tax Rates
§ 6–305.1LinkCopy Citation
(a)
In this section, “tax setoff” means:
(1)
the difference between the general county property tax rate and the property tax rate that is set for assessments of property in a municipal corporation; or
(2)
a payment to a municipal corporation to aid the municipal corporation in funding services or programs that are similar to county services or programs.
(b)
(1)
The governing body of Frederick County shall annually meet and discuss with the governing body of each municipal corporation in the county the county property tax rate to be set for assessments of property in the municipal corporation.
(2)
(i)
After the meeting if it can be demonstrated that a municipal corporation performs services or programs instead of similar county services or programs, the governing body of Frederick County shall grant a tax setoff to the municipal corporation in accordance with a formula agreed to by the county and the municipal corporation.
(ii)
If the governing body of Frederick County and the governing body of a municipal corporation fail to reach an agreement concerning the formula by which a tax setoff is to be calculated, the governing body of Frederick County shall grant a tax setoff in accordance with the formula used during the preceding taxable year.
(3)
Frederick County and a municipal corporation shall agree to phase in over a period of 3 to 5 years, beginning on July 1, 2016, any increase in the level of a tax setoff above the level of the tax setoff granted in the fiscal year beginning July 1, 2015, if the increase is attributable to the funding of new services or programs.
Md. Code Ann., Tax-Prop. § 6-306 (2026)
Title 6. Taxable Property; Imposition of Tax; Setting Tax Rates
Subtitle 3. Setting Property Tax Rates
§ 6–306LinkCopy Citation
(a)
In this section, “tax setoff” means:
(1)
the difference between the general county property tax rate and the property tax rate that is set for assessments of property in a municipal corporation; or
(2)
a payment to a municipal corporation to aid the municipal corporation in funding services or programs that are similar to county services or programs.
(b)
This section applies to any county not listed in § 6-305 of this subtitle.
(c)
The governing body of the county shall meet and discuss with the governing body of any municipal corporation in the county the county property tax rate to be set for assessments of property in the municipal corporation as provided in this section. After the meeting if a municipal corporation performs services or programs instead of similar county services or programs, the governing body of the county may grant a tax setoff to the municipal corporation.
(d)
In determining the county property tax rate to be set for assessments of property in a municipal corporation, the governing body of the county may consider:
(1)
the services and programs that are performed by the municipal corporation instead of similar county services and programs; and
(2)
the extent that the similar services and programs are funded by property tax revenues.
(e)
The county property tax rate for assessments of property located in a municipal corporation is not required to be:
(1)
the same as the rate for property located in other municipal corporations in the county; or
(2)
the same as the rate set in a prior year.
(f)
(1)
At least 180 days before the date that the annual county budget is required to be approved, any municipal corporation in the county that desires that a tax setoff be provided shall submit to the county a proposal that states the desired level of property tax setoff for the next fiscal year.
(2)
(i)
A request submitted under paragraph (1) of this subsection shall be accompanied by:
(1)
a description of the scope and nature of the services or programs provided by the municipal corporation instead of similar services or programs provided by the county; and
(2)
financial records and other documentation regarding municipal revenues and expenditures.
(ii)
The materials submitted under subparagraph (i) of this paragraph shall provide sufficient detail for an assessment of the similar services or programs.
(3)
After receiving a proposal from a municipal corporation requesting a tax setoff under this subsection, the governing body of the county shall promptly submit to the municipal corporation financial records and other documentation regarding county revenues and expenditures.
(g)
(1)
At least 90 days before the date that the annual county budget is required to be approved, the county and any municipal corporation submitting a tax setoff request under subsection (f) of this section shall designate appropriate policy and fiscal officers or representatives to meet and discuss the nature of the tax setoff request, relevant financial information of the county and municipal corporation, and the scope and nature of services provided by both entities.
(2)
A meeting held under paragraph (i) of this subsection may be held by the county representatives jointly with representatives from more than one municipal corporation.
(3)
(i)
The county officers or representatives may request from the municipal corporation officers or representatives additional information that may reasonably be needed to assess the tax setoff.
(ii)
The municipal corporation officers or representatives shall provide the additional information expeditiously.
(h)
(1)
At or before the time the proposed county budget is released to the public, the county commissioners, the county executive of a charter county, or the county council of a charter county without a county executive shall submit a statement of intent to each municipal corporation that has requested a tax setoff.
(2)
The statement of intent shall contain:
(i)
an explanation of the level of the proposed tax setoff;
(ii)
a description of the information or process used to determine the level of the proposed tax setoff; and
(iii)
an indication that, before the budget is enacted, appropriate officials or representatives of the municipal corporation are entitled to appear before the county governing body to discuss or contest the level of the proposed tax setoff.
(i)
Representatives of each municipal corporation in the county requesting a tax setoff shall be afforded an opportunity to testify before the county governing body during normally scheduled hearings on the county’s proposed budget.
(j)
Notwithstanding the provisions of subsections (d), (f), and (g) of this section:
(1)
a county and one or more municipal corporations may enter into an agreement setting different terms or timing for negotiations, calculations, or approval of a tax setoff; and
(2)
a county may grant a tax setoff to a municipal corporation that does not make a request in the fashion described in this section.
Md. Code Ann., Tax-Prop. § 6-307 (2026)
Title 6. Taxable Property; Imposition of Tax; Setting Tax Rates
Subtitle 3. Setting Property Tax Rates
§ 6–307LinkCopy Citation
The governing body of Anne Arundel County or of Howard County may not impose a county property tax on property of a resident of a municipal corporation for any service that the municipal corporation provides for the resident.
Md. Code Ann., Tax-Prop. § 6-308 (2026)
Title 6. Taxable Property; Imposition of Tax; Setting Tax Rates
Subtitle 3. Setting Property Tax Rates
§ 6–308LinkCopy Citation
(a)
In this section, “taxing authority” means:
(1)
the county council or board of county commissioners;
(2)
the City Council of Baltimore City; and
(3)
the governing body of a municipal corporation.
(b)
(1)
Unless the requirements of this section are met, a taxing authority may not set a county or municipal corporation real property tax rate that exceeds the current taxable year’s real property tax rate.
(2)
A taxing authority does not meet the requirements of this section until it provides to the Department evidence of the notices described in subsection (c) of this section.
(c)
If a taxing authority intends to increase the county or municipal corporation real property tax rate, it shall advertise to the public by:
(1)
placing a public notice in a newspaper of general circulation in the jurisdiction of the taxing authority; and
(2)
(i)
publishing a copy of the notice on the website of the taxing authority; or
(ii)
if the taxing authority does not have a website, posting a copy of the notice in a place that is easily accessible to the public.
(d)
If the taxing authority intends to set a real property tax rate that exceeds the current taxable year’s real property tax rate, the notice shall be in the following form:
“........ (NAME OF JURISDICTION) NOTICE OF A PROPOSED REAL PROPERTY TAX RATE INCREASE
For the taxable year beginning July 1,......, the ...... (name of taxing authority) of ...... (name of jurisdiction) proposes to increase real property tax rates from $...... per $100 of assessment to $...... per $100 of assessment.
A public hearing on the proposed real property tax rate increase will be held at...... (time) on...... (date) at...... (location). The hearing is open to the public, and public testimony is encouraged. Persons with questions regarding this hearing may call...... (phone number) for further information.”.
(e)
(1)
The meeting on the proposed county or municipal corporation real property tax rate increase shall be held:
(i)
on or after the 7th day and on or before the 21st day after the notice is published as required by subsection (c) of this section; and
(ii)
on or before June 17th before the date required by law for imposition of the real property tax.
(2)
The meeting may coincide with the meeting on the proposed budget of the taxing authority.
(3)
In computing periods of time under this subsection all calendar days shall be counted including Saturdays, Sundays, and holidays.
(f)
After the meeting, the taxing authority may adopt by law an increase in the county or municipal corporation real property tax rate:
(1)
on the day of the meeting; or
(2)
on a later day, if the day, time, and location to consider the increase are announced at that meeting.
(g)
(1)
Annually, a county shall include on the face of a real property tax bill:
(i)
the county real property tax rate for the current taxable year and the county real property tax rate for the immediately preceding taxable year; and
(ii)
the amount, if any, by which the county real property tax rate for the current taxable year exceeds the county real property tax rate for the immediately preceding taxable year.
(2)
If the total real property tax rate for the current taxable year, including the State and county rates and any municipal or special rates, does not exceed the total real property tax rate for the immediately preceding taxable year, the county shall include with the real property tax bill a notice that any increase in the total amount of property tax owed, exclusive of any fees included on the property tax bill, in the current taxable year compared to the previous taxable year is due to an increase in the taxable assessed value of the property.
(h)
A taxing authority that in good faith has made all reasonable efforts to comply with the requirements of subsections (b) through (f) of this section and provides satisfactory evidence to the Department that any lack of compliance with the requirements was for reasons beyond the taxing authority’s control:
(1)
is deemed to have complied with the requirements; and
(2)
may set a real property tax rate that exceeds the tax rate for the current taxable year.
(i)
(1)
The Director shall report to the Attorney General any taxing authority that appears to have violated the requirements of this section.
(2)
(i)
The Attorney General shall investigate the report forwarded by the Director.
(ii)
If the Attorney General finds that a taxing authority violated the requirements of this section, the Attorney General shall institute appropriate legal action to effect compliance with the requirements of this section.
(3)
If a court finds that a taxing authority violated this section, the real property tax rate of that taxing authority shall be the same as the tax rate for the current taxable year.