Did Your Property Tax Bill Go Up? Here’s Why

Did Your Property Tax Bill Go Up? Here’s Why

Montgomery County homeowners opening their property tax bills for the year that began July 1, 2026, will most likely find them higher than last year’s, even though the county did not raise the property tax. So, what changed?! The County Council voted to eliminate the Income Tax Offset Credit (ITOC) for 2026. The credit was $692 in levy year 2025 for owner-occupied properties and appeared on tax bills as “County Property Tax Credit.” The Council reduced it to $zero.

The Council did not repeal the ITOC permanently. So, it is still important to make sure that your home has a Homestead application on file. You can check the status through the State’s real property search at sdat.dat.maryland.gov/Real Property and select Montgomery County.

I don’t know the background on how the Council came to this decision to give Montgomery County homeowners almost a $700/year tax hike, but I do know that with the high cost of housing in our county, rising interest rates, and overall inflation, this was not a good time to make buying a home here even more expensive and further out of reach for so many people.