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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1427*
HOUSE BILL 1427
Q1 6lr2787
By: Delegate Ruth
Introduced and read first time: February 13, 2026
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Property Tax Credits – Renters’ Tax Credit, Homeowners’ Tax Credit, and 2
Homestead Tax Credit – Altering Eligibility and Amount 3
FOR the purpose of altering eligibility for the renters’ tax credit; altering the calculation of 4
and the maximum amount of the renters’ tax credit for certain taxable years; altering 5
the eligibility for and the calculation of the homeowners’ tax credit for certain taxable 6
years; making homeowners with a certain federal adjusted gross income ineligible 7
for the homestead property tax credit; and generally relating to property tax credits. 8
BY repealing and reenacting, without amendments, 9
Article – Tax – Property 10
Section 9–102(a)(1) and (b) and 9–104(b)(1) 11
Annotated Code of Maryland 12
(2019 Replacement Volume and 2025 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Tax – Property 15
Section 9–102(a)(9), (h), and (i) and 9–104(g) and (j) 16
Annotated Code of Maryland 17
(2019 Replacement Volume and 2025 Supplement) 18
BY adding to 19
Article – Tax – Property 20
Section 9–105(a–1) 21
Annotated Code of Maryland 22
(2019 Replacement Volume and 2025 Supplement) 23
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24
That the Laws of Maryland read as follows: 25
Article – Tax – Property 26
2 HOUSE BILL 1427
9–102. 1
(a) (1) In this section the following words have the meanings indicated. 2
(9) “Renter” means an individual, who during the calendar year for which 3
the property tax relief under this section is sought, actually occupies a dwelling in which 4
the individual has a leasehold interest and who: 5
(i) is at least 60 years old; 6
(ii) has been found permanently and totally disabled and has 7
qualified for benefits under: 8
1. the Social Security Act; 9
2. the Railroad Retirement Act; 10
3. any federal act for service members; or 11
4. any federal retirement system; 12
(iii) has been found permanently and totally disabled by a county 13
health officer or the Baltimore City Commissioner of Health; or 14
(iv) is under the age of 60 years and: 15
1. has gross income bel ow 200% OF the poverty threshold 16
that is established by the U.S. Department of Commerce, Bureau of the Census in August 17
of the previous calendar year; 18
2. has 1 or more dependent children under 18 years old living 19
with the renter; and 20
3. does not receive federal or State housing subsidies or 21
reside in public housing. 22
(b) There is a property tax relief program for any renter. 23
(h) (1) The property tax relief that a renter may receive under this section is 24
the assumed property tax on real property less a percentage of the combined income of the 25
renter. 26
(2) The percentage is: 27
(I) FOR THE TAXABLE YEAR BEGINNING JULY 1, 2027: 28
HOUSE BILL 1427 3
[(i)] 1. 0% of the 1st [$4,000] $8,000 of combined income; 1
[(ii)] 2. 2.5% of the 2nd [$4,000] $8,000 of combined income; and 2
[(iii)] 3. 5.5% of the combined income over [$8,000] $16,000; 3
(II) FOR THE TAXABLE YEAR BEGINNING JULY 1, 2028: 4
1. 0% OF THE 1ST $12,000 OF COMBINED INCOME; 5
2. 2.5% OF THE 2ND $12,000 OF COMBINED INCOME ; 6
AND 7
3. 5.5% OF THE COMBINED INCOME OVER $24,000; AND 8
(III) FOR THE TAXABLE YEAR BEGINNING JULY 1, 2029, AND 9
EACH TAXABLE YEAR THEREAFTER: 10
1. 0% OF THE 1ST $16,000 OF COMBINED INCOME; 11
2. 2.5% OF THE 2ND $16,000 OF COMBINED INCOME ; 12
AND 13
3. 5.5% OF THE COMBINED INCOME OVER $32,000. 14
(i) The property tax relief under this section may not be: 15
(1) more than [$1,000]: 16
(I) FOR THE TAXABLE YEAR BEGINNING JULY 1, 2027, $1,200; 17
(II) FOR THE TAXABLE YEAR BEGINNING JULY 1, 2028, $1,500; 18
AND 19
(III) FOR THE TAXABLE YEAR BEGINNING JULY 1, 2029, AND 20
EACH TAXABLE YEAR THEREAFTER, $2,000; 21
(2) granted to any renter whose combined net worth exceeds $200,000 as 22
of December 31 of the calendar year for which the property tax relief is sought; 23
(3) granted to any renter whose dwelling is exempt from property tax; and 24
(4) granted if the credit under this section is less than $1 in any year. 25
4 HOUSE BILL 1427
9–104. 1
(b) (1) The homeowners’ tax credit under this section is a State –funded 2
program. 3
(g) (1) Except as provided in subsection (h) of this section, the property tax 4
credit under this section is the total real property tax of a dwelling, less the percentage of 5
the combined income of the homeowner that is described in paragraph (2) of this subsection. 6
(2) The percentage is: 7
(I) FOR THE TAXABLE YEAR BEGINNING JULY 1, 2027: 8
[(i)] 1. 0% of the 1st [$8,000] $10,000 of combined income; 9
[(ii)] 2. 4% of the next [$4,000] $6,000 of combined income; 10
[(iii)] 3. 6.5% of the next [$4,000] $6,000 of combined income; and 11
[(iv)] 4. 9% of the combined income over [$16,000] $22,000; 12
(II) FOR THE TAXABLE YEAR BEGINNING JULY 1, 2028: 13
1. 0% OF THE 1ST $12,000 OF COMBINED INCOME; 14
2. 4% OF THE 2ND $10,000 OF COMBINED INCOME; 15
3. 6.5% OF THE NEXT $10,000 OF COMBINED INCOME ; 16
AND 17
4. 9% OF THE COMBINED INCOME OVER $32,000; 18
(III) FOR THE TAXABLE YEAR BEGINNING JULY 1, 2029: 19
1. 0% OF THE 1ST $12,000 OF COMBINED INCOME; 20
2. 4% OF THE 2ND $14,000 OF COMBINED INCOME; 21
3. 6.5% OF THE NEXT $14,000 OF COMBINED INCOME ; 22
AND 23
4. 9% OF THE COMBINED INCOME OVER $40,000; AND 24
HOUSE BILL 1427 5
(IV) FOR THE TAXABLE YEAR BEGINNING JULY 1, 2030, AND 1
EACH TAXABLE YEAR THEREAFTER: 2
1. 0% OF THE 1ST $12,000 OF COMBINED INCOME; 3
2. 4% OF THE 2ND $18,000 OF COMBINED INCOME; 4
3. 6.5% OF THE NEXT $20,000 OF COMBINED INCOME ; 5
AND 6
4. 9% OF THE COMBINED INCOME OVER $50,000. 7
(j) (1) A property tax credit under this section may not be granted to a 8
homeowner whose combined net worth exceeds $200,000 as of December 31 of the calendar 9
year that precedes the year in which the homeowner applies for the property tax credit or 10
whose combined gross income exceeds [$60,000 in that same calendar year ] THE 11
FOLLOWING AMOUNTS: 12
(I) FOR THE CALENDAR YEA R ENDING DECEMBER 31, 2026, 13
$65,000; 14
(II) FOR THE CALENDAR YEA R ENDING DECEMBER 31, 2027, 15
$72,000; 16
(III) FOR THE CALENDAR YEA R ENDING DECEMBER 31, 2028, 17
$80,000; AND 18
(IV) FOR THE CALENDAR YEA R ENDING DECEMBER 31, 2029, 19
AND EACH CALENDAR YEAR THEREAFTER, $88,000. 20
(2) If a property tax credit under this section is less than $1 in any taxable 21
year, the credit may not be granted. 22
(3) A homeowner may claim a property tax credit under this section for 23
only 1 dwelling. 24
(4) Except as provided in subsection (u) of this section, if a property tax 25
credit is issued under this section, the credit or a voucher for a credit may be used only in 26
the taxable year in which it was issued or the next succeeding taxable year. However, a 27
homeowner whose dwelling is sold for taxes may receive the credit until the final decree 28
under § 14–844 of this article is entered. 29
9–105. 30
6 HOUSE BILL 1427
(A–1) (1) A HOMEOWNER WITH A FEDERAL ADJUSTED GROSS INCOME THAT 1
IS GREATER THAN $300,000 IS NOT ELIGIBLE FOR THE PROPERTY TAX CRE DIT 2
UNDER THIS SECTION. 3
(2) THE DEPARTMENT SHALL ADOPT REGULATIONS THAT ESTABLISH 4
PROCEDURES TO VERIFY THE INCOME OF HOMEOW NERS FOR PUR POSES OF THIS 5
SUBSECTION. 6
(3) NOTWITHSTANDING § 13–202 OF THE TAX – GENERAL ARTICLE, 7
THE COMPTROLLER SHALL PROVI DE THE DEPARTMENT WITH ANY I NFORMATION 8
REQUIRED TO CARRY OUT THIS SUBSECTION. 9
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 10
1, 2027, and shall be applicable to all taxable years beginning after June 30, 2027. 11