Maryland Homeowners and Businesses Face Higher Property Taxes in 2025 as Assessments Soar by 20%

Maryland homeowners and businesses should brace for higher property tax bills in 2025 as property assessments see a sharp increase. The Maryland Department of Assessments and Taxation (SDAT) recently reassessed over 700,000 properties across the state, reporting an average property value jump of 20.1%.

Residential properties experienced an average increase of 21.1%, while commercial properties saw a 16.4% rise. This surge in assessments highlights the impact of Maryland's limited housing supply and escalating real estate prices, signaling higher tax obligations for many property owners in the coming year.

These property assessments are part of Maryland’s triennial reassessment process, which evaluates one-third of the state’s properties annually. As a result, some property owners will feel the financial impact immediately, while others may encounter tax adjustments over the next few years.

For those who believe their property values have been overestimated, SDAT provides an appeals process to challenge the assessment. Additionally, Maryland offers a range of tax credit programs aimed at helping eligible homeowners offset the burden of increased property taxes.

Property owners are encouraged to carefully review their reassessment notices and seek professional guidance to better understand how these changes may affect their financial outlook.