Homeowners’ and Renters’ Tax Credit Applications Deadline is Approaching

The Maryland State Department of Assessments and Taxation (SDAT) is urging Marylanders to consider whether they may be eligible to receive a homeowners’ or renters’ property tax credit and to submit an annual application before the September 4, 2018 deadline. Combined, these two tax credit programs helped more than 55,000 Marylanders save more than $65 million in taxes in 2017. SDAT has also signed a Memorandum of Understanding (MOU) with Benefits Data Trust (BDT) to promote these tax credits and help low-income homeowners’ and renters’ complete their applications.

“Every year, our Department contacts more than one hundred thousand low-income Marylanders who may be eligible for tax relief, and we remain committed to finding innovative and effective ways to encourage them to apply,” said SDAT Director Michael Higgs. “We are excited about our new partnership with BDT, which will make it even easier for individuals and families in-need to find and apply for the homeowners’ and renters’ tax credits.”

The Homeowners’ Property Tax Credit Program provides tax relief for eligible homeowners by setting a limit on the amount of property taxes owed based on their income. If a resident has already paid their property taxes and applies before September 1, any tax credit that the homeowner may be eligible for will be refunded by their county finance office. The Renters’ Property Tax Credit Program similarly provides tax relief for eligible renters who pay high monthly rent relative to their total income. This credit is issued in the form of a direct check payment of up to $1,000 a year.

To determine whether you are eligible to receive a tax credit, you may call 410-767-4433 or 1-800-944-7403 (toll free within Maryland). To receive an application, please email sdat.taxcreditapp@maryland.gov or call 410-767-4238.

In 2017, approximately 47,000 homeowners received an average of $1,339 in tax relief, while more than 8,800 renters received an average of $402 in tax relief. These two tax credit programs alone saved Maryland taxpayers more than $65 million last year. Homeowners may also be eligible to receive the Homestead Tax Credit to limit taxable assessment increases on their principal residence. Many counties and municipalities also provide supplemental homeowners’ credits, which provide additional tax relief. If a resident is approved to receive the state homeowners’ credit, they will automatically receive any local supplemental homeowners’ credit for which they are eligible.
SDAT has entered into a partnership with BDT, which is a national non-profit committed to transforming how families and individuals in-need access essential benefits and services in Maryland through the Maryland Benefits Center. Multi-lingual outreach specialists will assist individuals during the entire application process for the homeowners’ and renters’ tax credits. They will also immediately connect applicants with numerous other state, local, and community programs available to ensure they are able to meet their basic needs.

Additionally, SDAT recently conducted a tax credit awareness campaign to educate Maryland homeowners and renters about the availability of these tax credits. Over 77,000 postcards were mailed to low-income homeowners who may be eligible to receive a tax credit, but have not yet submitted an application. SDAT has also been proactively sharing this information with the public through direct mail, email campaigns, social media, and other forms of community outreach.

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