Montgomery County Property Taxes: What Homeowners, Sellers and Buyers Should Know

How much are property taxes in Montgomery County, Maryland?

For the tax year that began July 1, 2026, most homes in Montgomery County that are not inside an incorporated town pay a combined rate of about $1.15 for every $100 of assessed value, or roughly 1.15% of the assessment each year. That rate includes the state, county and special service area taxes. On a home assessed at $1,200,000, that comes to about $13,825 a year, before credits and before the solid waste and water quality charges that also appear on the bill.

The rate itself did not change this year, but many homeowners are seeing higher bills. The County Council eliminated the $692 credit that used to appear on owner-occupied bills, and assessments in many neighborhoods are still rising. This guide explains how the bill is built, what changed in 2026, and what sellers and buyers in Bethesda, Chevy Chase, Silver Spring and the rest of the county should know.

What Your Tax Bill Is Made Of

A Montgomery County property tax bill has several parts, and they all appear on one bill:

• State tax. About 11 cents per $100 of assessed value, the same everywhere in Maryland.
• County tax. The largest piece, which funds the county budget and the public school system.
• Special service area taxes. Smaller rates for transit, fire and rescue, and parks, which depend on where the home sits.
• Town tax, if you live in an incorporated town. Places such as Chevy Chase Village, the Town of Chevy Chase, Somerset, Kensington, Garrett Park, Rockville, Gaithersburg and Takoma Park add a town tax, and in some towns part of the county rate is reduced because the town provides certain services. Your bill will show the exact combination for your address.
• Solid waste and water quality charges. These are flat fees, not rates. The solid waste charge pays for trash disposal and, in some areas, collection and leaf vacuuming. The water quality protection charge pays for stormwater maintenance and water quality work.

Because the combination varies, two homes a mile apart can pay different rates. The simplest way to see yours is to look up the address on the county's real property tax bill site, which shows every line of the current bill.

What Changed in 2026: The $692 Credit Is Gone

For years, owner-occupied homes in Montgomery County received a credit of $692 on every bill, listed as the County Property Tax Credit. In its fiscal year 2027 budget, the County Council set that credit to zero instead of raising the tax rate. The county rate stayed the same, so the change shows up on bills as a $692 increase for most homeowners, on top of any increase from a higher assessment.

The credit was set to zero, not repealed, so a future council could bring it back. If it returns, it would apply only to homes with a homestead application on file with the state, which is one more reason every owner-occupant should make sure that application is filed.

How Your Home Is Assessed

The county sets the rate, but the State of Maryland sets the value the rate is applied to. The State Department of Assessments and Taxation reassesses every property once every three years. About a third of the county is reassessed each year, and owners receive a notice around the end of the year.

When an assessment goes up, the increase is phased in over three years rather than all at once. When it goes down, the lower value takes effect right away. If you think your new assessment is too high, you have 45 days from the date of the notice to appeal. A recent sale of a similar house nearby, or problems with the condition of your home, are the most useful evidence.

The Homestead Credit: Why a Seller's Bill Isn't the Buyer's Bill

If a home is your principal residence, the homestead credit limits how much your taxable assessment can rise each year. In Montgomery County the cap is 10% a year (5% in Kensington). If your assessment jumps 30% in a reassessment, you are taxed on only a 10% increase in the first year, and the rest is phased in only as the cap allows.

Here is the part that surprises buyers. The cap belongs to the owner, not the house, and it does not carry over to the next owner. Someone who has owned a home for many years may be paying taxes on an assessment well below the current value. When the home sells, the new owner is taxed on the full assessment, and the homestead cap does not apply in the first year after a purchase. That means the tax figure in a listing, which reflects the seller's bill, can be noticeably lower than what the buyer will pay.

For example, if a home's full assessment is $1,300,000 but the long-time owner is taxed on $1,000,000 because of the cap, the seller's bill is based on $1,000,000. At the typical combined rate, the buyer's bill could be about $3,450 a year higher once it is based on the full $1,300,000.

If you are buying, ask your agent to estimate taxes on the full assessment, not the seller's bill, and file a homestead application with the state after you move in. It is a one-time application, and the credit only applies once it is on file.

If you are selling, it helps to know this before buyers ask. A buyer's lender will usually escrow taxes based on the full assessment, so explaining the difference early avoids surprises during the loan process.

When Taxes Are Due

The Montgomery County tax year runs from July 1 to June 30, and taxes are paid in advance for that year. Bills are posted online by July 1 and mailed in July.

• If the home is your principal residence, the bill is split into two payments, due September 30 and December 31, with no extra charge. You can choose to pay it all at once instead.
• For other properties, the full bill is due September 30.
• Late payments add interest and penalties of 1 2/3% a month.

If you have a mortgage, your lender usually pays the bill from your escrow account. It is still worth checking each July that the bill was paid and that any credits you qualify for appear on it.

How Property Taxes Work When You Sell

All property taxes must be current before the deed can be recorded, so the settlement company checks the tax status before closing. Because Maryland taxes are paid in advance, the seller has usually paid for months they won't own the home. At settlement, the taxes are divided by date. If the seller has already paid through June 30 and settles in March, the buyer reimburses the seller for April through June.

Between July and December, when a principal residence bill is split into two payments, the settlement figures also depend on whether the second payment has been made. If it is still open at settlement, the buyer typically takes it over and the credit to the seller is smaller. Either way, the net result for the seller is the same: you pay taxes for the time you owned the home.

Property taxes are only one line on the settlement statement. My guides to Montgomery County transfer and recordation taxes for sellers and seller net proceeds in DC, Maryland and Virginia cover the rest, and what happens after you accept an offer walks through the weeks between contract and settlement.

Other Credits Worth Knowing About

The state and county also offer credits for homeowners with limited incomes and for owners 65 and older. These are not automatic. Each requires an application with the state, and the income-based credit must be renewed every year. If you think you may qualify, the county's tax questions page is the place to start.

What This Means in Bethesda and Chevy Chase

In neighborhoods where prices have risen quickly, such as Sumner, Glen Echo Heights and Bannockburn, the gap between a long-time owner's taxable assessment and the full assessment can be large. That is where buyers are most likely to see a jump in their first full tax bill, and where sellers benefit most from explaining it up front.

The homes themselves are still selling. In September, detached houses in Bethesda sold at a median 98.5% of their original asking price, and in Chevy Chase at full asking price. My September Bethesda and Chevy Chase market update has the full numbers.

I also work in Upper Northwest DC, Chevy Chase DC, Arlington, Alexandria and McLean. If you are comparing the two sides of the line, my guide to DC transfer tax for sellers covers the DC side of closing costs.

Frequently Asked Questions

What is the property tax rate in Montgomery County, Maryland?

For the tax year that began July 1, 2026, most homes outside an incorporated town pay a combined rate of about $1.15 per $100 of assessed value, including the state tax. Homes in towns such as Chevy Chase Village, Rockville or Takoma Park pay a different combined rate.

Did Montgomery County property taxes go up in 2026?

The rate did not change, but most owner-occupied homes lost the $692 County Property Tax Credit, and many assessments rose. For most homeowners, the bill went up.

What happened to the $692 property tax credit in Montgomery County?

The County Council set the credit to zero in its fiscal year 2027 budget, starting with the bills issued in July 2026. It was not repealed, so it could return in a future budget.

How much can my Montgomery County assessment go up each year?

If the home is your principal residence and you have a homestead application on file, your taxable assessment can rise no more than 10% a year, or 5% in Kensington.

Will my property taxes go up when I buy a house in Montgomery County?

Often, yes. The seller's homestead cap does not transfer to the buyer, so the buyer is taxed on the full assessment. Estimate taxes on the full assessment, not the seller's current bill.

When are Montgomery County property taxes due?

Bills are issued in July. For a principal residence, payments are due September 30 and December 31. For other properties, the full bill is due September 30.

Thinking About Selling or Buying in Montgomery County?

Whether you want to know what a buyer will pay in taxes on your home or what your own bill will look like after you buy, I'd be glad to walk through the numbers with you. Call or text me at 202.536.4043, email sherine@smdg-llc.com, or request a home value review. My selling guide and buying guide cover the rest of the process. Sherine is here whenever you're ready.

Sources: Montgomery County 2026 Real Property Tax Rate Schedule; Maryland State Department of Assessments and Taxation, 2026-2027 tax rates and homestead credit caps; Montgomery County Department of Finance, tax questions; Montgomery Community Media, May 2026 and its report on the July 2026 tax bills. Rates and credits change with each county budget. This is general information, not tax or legal advice.

About Sherine Monir

Sherine Monir is a Realtor with Compass and also a licensed Interior Designer in DC (NCIDQ, CID, ASID), with a master's degree in interior design from Marymount University. Licensed in DC, Maryland and Virginia since 2013, she has sold over 200 homes totaling more than $115 million and is ranked in the top 5% of DC Metro agents. She was named to RealTrends America's Best 2026 (top 1.5% nationally), is a Washingtonian Elite Producer and Bethesda Magazine Top Producer, and is a DC Real Estate Awards honoree. She represents sellers and buyers across Upper Northwest DC, Bethesda, Chevy Chase, Arlington, Alexandria and McLean. Compass, 1313 14th Street NW, Washington DC 20005. Office 202.386.6330.