A tax credit is available for elderly, disabled, and low income renters. The property tax relief provided by this law is based on a calculation that includes tenant's total income and the actual amount paid as occupancy rent, excluding charges for utilities and furnishings if those charges are included in the rent. The maximum amount of the credit provided for a renter under this law is $1,000 per year. The credit will not be granted to any renter whose dwelling is exempt from property tax or whose combined net worth exceeds $200,000 on December 31 of the calendar year for which relief is sought.
To be eligible, a tenant must be:
- At least 60 years old; or
- Found to be permanently and totally disabled and has qualified for certain federal benefits; or
- Found to be permanently and totally disabled by a county health officer or the Baltimore City Commissioner of Health; or
- Under age 60 and
- Has gross income below the poverty level established by the U.S. Census Bureau,
- Has 1 or more dependent children under 18 years of age living with the tenant, and
- Does not live in public housing and does not receive a state or federal housing subsidy.
The renter must actually reside in the rented dwelling for at least 6 months of the calendar year for which the credit is sought. “Dwelling” is the rental unit that is the renter's principal residence and includes a mobile home pad on which the renter’s principal residence is placed.
Information about this tax relief program is included in each packet of state income tax forms and instructions. Applications must be made by October 1 of the year following the calendar year for which property tax relief is sought. For more information, contact the Maryland Department of Assessments and Taxation's Renters' Tax Credit Program at [email protected] or 410-767-5915.
Read the Law: Md. Code, Tax-Property § 9–102
Read the Regulations: Code of Md. Regulations, Title 18, Subtitle 7, Chapter 2