Homeowners' Property Tax Credit - Eligibility and Calculation - Alterations

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0812*

SENATE BILL 812
Q1 6lr3325

By: Senator Hayes
Introduced and read first time: February 6, 2026
Assigned to: Budget and Taxation

A BILL ENTITLED

AN ACT concerning 1

Homeowners’ Property Tax Credit – Eligibility and Calculation – Alterations 2

FOR the purpose of altering the calculation of a certain homeowners’ property tax credit; 3
increasing a certain combined gross income limit used for determining eligibility for 4
the credit; and generally relating to the homeowners’ property tax credit. 5

BY repealing and reenacting, without amendments, 6
Article – Tax – Property 7
Section 9–104(a)(1) and (14) and (f) 8
Annotated Code of Maryland 9
(2019 Replacement Volume and 2025 Supplement) 10

BY repealing and reenacting, with amendments, 11
Article – Tax – Property 12
Section 9–104(g) and (j)(1) 13
Annotated Code of Maryland 14
(2019 Replacement Volume and 2025 Supplement) 15

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY O F MARYLAND, 16
That the Laws of Maryland read as follows: 17

Article – Tax – Property 18

9–104. 19

(a) (1) In this section the following words have the meanings indicated. 20

(14) (i) “Total real property tax” means the product of the sum of all 21
property tax rates on real property, including special district tax rates, for the taxable year 22
on a dwelling, multiplied by the lesser of: 23

2 SENATE BILL 812

1. $300,000; or 1

2. the assessed value of the dwelling reduced by the amount 2
of any assessment on which a property tax credit is granted under § 9–105 of this subtitle. 3

(ii) “Total real property tax” does not include any adjustment for any 4
other property tax credit under this title claimed against the property tax imposed on the 5
dwelling. 6

(f) A homeowner who meets the requirements of this section shall be granted the 7
property tax credit under this section against the property tax imposed on the real property 8
of the dwelling. 9

(g) (1) Except as provided in subsection (h) of this section, the property tax 10
credit under this section is the total real property tax of a dwelling, less the percentage of 11
the combined income of the homeowner that is described in paragraph (2) of this subsection. 12

(2) The percentage is: 13

(i) 0% of the 1st [$8,000] $15,000 of combined income; 14

(ii) [4%] 3% of the next [$4,000] $7,500 of combined income; 15

(iii) [6.5%] 6% of the next [$4,000] $7,500 of combined income; and 16

(iv) 9% of the combined income over [$16,000] $30,000. 17

(j) (1) A property tax credit under this section may not be granted to a 18
homeowner whose combined net worth exceeds $200,000 as of December 31 of the calendar 19
year that precedes the year in which the homeowner applies for the property tax credit or 20
whose combined gross income exceeds [$60,000] $100,000 in that same calendar year. 21

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 22
1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026. 23