Buying or selling in Baltimore, Maryland? Before a client falls in love with a property, they’ll need to know about the Baltimore city property tax rate. Unfortunately, too many people don’t consider property taxes when looking for a new home.
Preparing your clients with the right information is a way to gain trust and build a great reputation (meaning more referrals for you). Hoping to learn more about Baltimore’s property tax? Get the information you need here, just in time for 2023.
Living in Baltimore, MD
Baltimore is the most populous city in Maryland, with over 500,000 people. It has over 225 different neighborhoods and a rich history.
With over 60 museums and tourist spots, including Edgar Allen Poe’s grave and Babe Ruth’s birthplace, and home to the Baltimore Ravens and the Orioles, there’s something for everyone in Charm City!
Baltimore’s average annual salary is $62,510, with plenty of job opportunities, especially in the medical and bioscience industries. Baltimore is also home to Johns Hopkins University and several other major medical hospitals and research centers.
The cost of living in Baltimore is 9% more than the national average, with nearly 15% higher cost of groceries than the rest of the United States. The median house price is $206,379, up 9% from 2021.
Property tax rates in Baltimore for 2023
Baltimore’s property tax rate for the 2022-2023 fiscal year is 2.248% or $2.248 per $100 of assessed property—the highest in Maryland. This is because many homeowners have to take on additional expenses not covered by unoccupied, vacant buildings.
In addition to the city’s property tax, Maryland has a state property tax rate of $0.112 per $100, making Baltimore’s total property tax rate 2.36%.
Will property tax rates rise?
It’s unlikely that the property tax rates in Baltimore will rise as they have been at the same base rate of 2.48% for quite some time. However, state taxes or special district tax rates could change, impacting the overall rate a homeowner pays. Additionally, property values are increasing in Baltimore, which raises the cost of homeowner’s property taxes.
Because of this, several activist groups and initiatives hope to lower the burden on taxpayers by lowering the property tax rate in the city. That said, petitions have yet to make it to voter ballots.
Tax rates in surrounding areas
Baltimore has a very high property tax rate compared to other cities in the state. Thankfully, Maryland is fairly small, meaning you can live close to Baltimore without actually living in the city.
If you want to live close to Baltimore without paying the price, consider a few other cities and towns. We’ve listed some below, with all rates, including any additional county tax rates and the state tax rate of 0.112:
- Annapolis: 1.40%
- Cumberland: 1.98%
- Elkton: 1.76%
- Highland Beach: 1.16%
- Oakland: 1.64%
What does property tax revenue fund in Baltimore?
Property tax collected in Baltimore funds many public services, including:
- Fire and police protection
- Schools
- Parks
- Transportation (CityLink, LocalLink, Charm City Circulator, etc.)
- Libraries
- Street maintenance
- Community centers
Important information to know when moving to Baltimore, MD
Moving to Baltimore? It’s important to know a few important tax dates and details.
Maryland has the 11th highest tax burden in the United States, making it fairly expensive to live there. Make sure you can budget for every potential expense before making any big moves.
The State of Maryland also charges a 6% sales tax on regular purchases and 9% on alcoholic beverages.
The first due date for property taxes in Baltimore County is July 1st, but payments can be made until September 30th without interest or penalties.
The second is December 1st. You can still pay by December 31st to avoid penalties and interest. Late payments are subject to tax sales and liens on their property.
Additionally, if you pay your property taxes by July 31st, the city reduces your bill by 0.5%, which is huge in a city where property taxes are soaring.
Even if you can’t make your property tax payment early, Baltimore offers many options for property tax exemptions, including ones for veterans, artists, and business owners. Knowing what your clients may qualify for as a real estate professional is essential, especially if they are first-time homeowners!
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