Find Information on Tax Credits Available

Homestead Tax Credit

Anyone can apply as long as you live in the primary residence.  Applications due by September 1st.  You need only apply once, as this credit will carryover year after year as long as you live in the same residence.  

What is the Homestead Credit?

To help homeowners deal with large assessment increases on their principal residence, state law has established the Homestead Property Tax Credit. The Homestead Credit limits the increase in taxable assessments each year to a fixed percentage. Every county and municipality in Maryland is required to limit taxable assessment increases to 10% or less each year. 

Technically, the Homestead Credit does not limit the market value of the property as determined by the Department of Assessments and Taxation. Instead, it is actually a credit calculated on any assessment increase exceeding 10% (or the lower cap enacted by the local governments) from one year to the next. The credit is calculated based on the 10% limit for purposes of the State property tax, and 10% or less (as determined by local governments) for purposes of local taxation. In other words, the homeowner pays no property tax on the market value increase which is above the limit.

Assume that your old assessment was $100,000 and that your new phased-in assessment for the 1st year is $120,000. An increase of 10% would result in an assessment of $110,000. The difference between $120,000 and $110,000 is $10,000. The tax credit would apply to the taxes due on the $10,000. If the tax rate was $1.04 per $100 of assessed value, the tax credit would be $104 ($10,000 ÷ 100 x $1.04).

Homeowners' Property Tax Credit Program

The deadline to apply is October 1st of each year. However, it is to your advantage to submit the application by April 15 so that any credit due you can be deducted before hand from the initial July tax bill.

What is the Homeowners' Property Tax Credit Program?

The State of Maryland has developed a program which allows credits against the homeowner's property tax bill if the property taxes exceed a fixed percentage of the person's gross income. In other words, it sets a limit on the amount of property taxes any homeowner must pay based upon his or her income.

Additionally, the Frederick County Senior Tax Credit is a supplement to the State's Homeowner Tax Credit.  The State administers the credit as part of the State Homeowner Tax Credit program.

Renter's Tax Credits

Must apply by October 1st of each year.

The Renters' Tax Credit Program provides property tax credits for renters who meet certain requirements. The plan was modeled after and designed to be similar in principle to the Homeowners' Tax Credit Program, which is known to many as the Circuit Breaker Program. The concept rests on the reasoning that renters indirectly pay property taxes as part of their rent and thus should have some protection, as do homeowners.

The plan is based upon the relationship between rent and income. If the portion of rent attributable to the assumed property taxes exceeds a fixed amount in relation to income, the renter can, under specified conditions, receive a credit of as much as $1,000. The credit is paid as a direct check from the State of Maryland.

Town of Thurmont Senior Tax Credit Application and Information

Eligibility for the Town of Thurmont Senior Tax Credit :

  • At least one owner of the property must be 65 years of age as of January 1st.
  • Adjusted Gross Income of the residents of the property shall not exceed $70,000.
  • All municipal taxes must be paid and current.
  • The credit is applicable only if the property is the principal residence of the property owners (Any property that is in a Trust of any kind is not eligible).

The Application along with the required documentation is accepted until September 1st of each year.  If approved, the tax credit issued is 10% of your paid Town of Thurmont Tax.  Tax Credit checks are issued on a monthly basis.