The Montgomery County Senior’s Guide to Property Tax Relief
If you own a home in Montgomery County and you’re 65 or older, there’s a good chance you’re leaving real money on the table every single year.
Maryland and Montgomery County offer a layered set of property tax relief programs specifically designed for senior homeowners. Last year alone, the combined county credit averaged $1,381 per household among the more than 4,100 county residents who claimed it. Yet the majority of eligible seniors never apply — either because they didn’t know these programs exist, or because they assumed they wouldn’t qualify.
This guide walks you through every program available right now, with plain-language explanations of who qualifies, how much you could save, and exactly how to apply.
Program 1: The Homestead Tax Credit
One-Time Application · No Income Limit · Automatic Once Filed
This is the foundation of Maryland’s property tax protection system — and it’s the one program every homeowner should have in place before anything else.
What it does: It caps how much your taxable assessment can increase from year to year. In Montgomery County, that cap is 10%. So even if your home’s market value jumps 20% in a reassessment year, you only pay taxes on the first 10% of that increase. The credit compounds and grows the longer you stay in your home.
Who qualifies: Any homeowner who uses the property as their principal residence. There is no age requirement and no income limit.
How to apply: It’s a one-time application filed with the Maryland State Department of Assessments and Taxation (SDAT). Many longtime homeowners have already filed. You can check your status in SDAT’s Real Property database online. If you have never filed, do it now. Filing caps your future assessment increases immediately — and since any future return of the ITOC would require entirely new county legislation, the most important reason to file is simply to protect yourself from rising assessments right away.
Program 2: Homeowners’ Property Tax Credit (HOTC)
Annual Application · Income-Based · Deadline: October 1, 2026
This is Maryland’s main income-based property tax credit — and one of the most generous in the region. It sets a limit on how much of your income you should have to pay in property taxes, then credits you for anything above that limit.
Who qualifies: You must own and occupy the home as your principal residence, have combined gross household income of $60,000 or less, and have a combined net worth of $200,000 or less — not counting the value of your home and qualified retirement savings such as IRAs and 401(k)s.
Important note: Social Security income counts toward the $60,000 income limit — even though it may not be taxable for federal purposes.
How to apply: File the Homeowners’ Tax Credit Application with SDAT each year by October 1. One application covers eligibility for the state credit, the Montgomery County Supplement, and the Senior Tax Credit (see below).
Program 3: Montgomery County Supplemental Credit
No Separate Application · More Generous Than State Limits · Deadline: October 1, 2026
Montgomery County layers its own supplemental credit on top of the state HOTC — and uses more generous qualification thresholds, meaning some residents who don’t qualify for the state credit alone may still receive the county benefit.
2026 limits: The maximum assessed home value to which the credit applies is $383,100. Rather than enforcing a strict flat income cutoff, Montgomery County mirrors the state’s $60,000 income floor but then scales the supplement dynamically — calculating how much your property taxes exceed a set percentage of your income and crediting the difference. The figure often cited, $76,620, reflects the upper income threshold at which the county supplement phases out under typical calculations, but your actual benefit depends on your specific tax-to-income ratio. When in doubt, apply — SDAT will calculate your eligibility for you.
Good news: No separate application is required. When you file the state HOTC application, you are automatically considered for the county supplement as well.
Special provision for seniors 70+: If you are at least 70 years of age, you may be eligible to file retroactive applications — meaning you could potentially recover credits from prior years if you missed filing.
Program 4: Montgomery County Senior Tax Credit
Age 65+ · Automatically Calculated · Same Application as HOTC
This is an additional county-level credit specifically for senior homeowners, introduced by Montgomery County in 2007 and calculated as 50% of the combined state HOTC and county supplement that you receive.
Who qualifies: Homeowners who are at least 65 years of age and use the home as their principal residence — and who qualify for either the state HOTC or the county supplement.
Together, the HOTC, county supplement, and senior credit averaged $1,381 per household for the 4,100+ county residents who received them last year.
Program 5: New Maryland Age 77+ Supplemental Tax Credit
Brand New for 2026 · Higher Income Limits · Filed on State Tax Return
Starting with tax year 2026, Maryland introduced a brand-new credit for residents aged 77 and older that uses significantly higher income thresholds than the standard HOTC — making it accessible to seniors who previously did not qualify.
| Age | Credit Amount |
|---|---|
| Age 77 | 25% of your state income tax liability |
| Age 78 | 50% of your state income tax liability |
| Age 79 | 75% of your state income tax liability |
| Age 80+ | 100% of your state income tax liability |
Income limits: Up to $175,000 for single filers and $250,000 for joint filers — far above the standard HOTC threshold.
Can you claim both this credit and the HOTC? Yes — if you meet both programs’ eligibility requirements, you can benefit from both in the same year. They work on entirely different tracks: the HOTC is a property tax credit administered locally that reduces your property tax bill; the Age 77+ credit is an income tax credit that reduces your Maryland state income tax liability. There is no statutory restriction preventing you from claiming both simultaneously. Consult your tax advisor to make sure you are capturing every benefit available to you.
How to claim it: This credit is filed on your Maryland state income tax return — not through SDAT.
Quick Reference: At a Glance
| Program | Who Qualifies | Deadline |
|---|---|---|
| Homestead Credit | All principal-residence homeowners | One-time only |
| HOTC (State) | Income ≤$60K, net worth ≤$200K | Oct 1, 2026 |
| County Supplement | Scaled formula; home assessed value ≤$383,100 (apply — SDAT calculates your benefit) | Oct 1, 2026 |
| Senior Tax Credit | Age 65+, qualifies for HOTC or supplement | Same as HOTC |
| Age 77+ Credit (New) | Age 77+, income ≤$175K single / ≤$250K joint | State tax return |
A Note from Charlie and Debbie
Whether you’re thinking about staying in your current home for years to come, or beginning to explore your options, we believe every senior homeowner in Montgomery County deserves to know what financial protections are available to them.
If you have questions about any of these programs — or about how your property value may be affecting your eligibility — we’re happy to talk. And if you’re starting to think about a move, we’d love to share how our New Homefinder and Special Homefinder programs can help you find the right home before it ever hits the public market.
The Encore Team at RE/MAX Realty Services
Cell: 240-351-8214 · Office: 240-403-0400
Rockville, MD · Specializing in Montgomery County
This report is provided for informational purposes only. Program rules, income limits, and deadlines are subject to change. Always confirm current details directly with SDAT or Montgomery County before applying.
