The 2026 Maryland Property Tax Spike: How to Appeal Your Assessment Before You Sell

If you have opened your mailbox recently only to find your stomach dropping at a new property valuation notice, you are definitely not alone. Property tax assessments across Maryland have surged by a statewide average of 12.7%. For homeowners, this sticker shock sparks immediate panic about skyrocketing monthly mortgage escrows and upcoming tax bills. But if you are planning to sell your home soon, this spike introduces an entirely new hurdle: a bloated tax history can actively scare off buyers who are already highly sensitive to monthly carrying costs.

To understand why this is happening now, you have to look at Maryland’s unique triennial system. The State Department of Assessments and Taxation (SDAT) splits the state into three geographic assessment zones: Group 1, Group 2, and Group 3. Only one group is reassessed each year, meaning your new valuation reflects three full years of market growth packed into a single update.

Fortunately, Maryland’s Homestead Tax Credit acts as a shield for primary residences, capping how much your taxable assessment can increase each year. However, if your market valuation is fundamentally incorrect or vastly outpaces recent local sales, letting it sit unchallenged will directly damage your property’s competitive edge when you hit the market.

However, for those in Montgomery County, the Income Tax Offset Credit (ITOC), which was a flat-rate $692 property tax credit automatically applied to your annual bill was just eliminated by the County Council so you folks are getting an additional $692 tax increase beginning July 1, 2026.

Fortunately, fighting an unfair valuation is a straightforward process that any homeowner can handle. If you want to protect your bottom line and improve your home's marketability before listing, you can formally appeal your valuation through SDAT by following these four basic steps:

• Step 1: Check Your Deadline. If you just received a new triennial assessment notice, you have exactly 45 days from the date printed on the notice to file an official appeal. If you missed that window, or if it isn't your property's scheduled reassessment year, you can still file what is called a "Petition for Review" by the first business day of January to challenge the upcoming tax year.

• Step 2: File the Initial Appeal. You can submit your challenge quickly and securely online via the SDAT Assessment Appeals Portal using the control number found right on your notice. Alternatively, you can fill out and mail back the paper form included with your assessment.

• Step 3: Gather Your Evidence. To win your case, you must prove that SDAT’s valuation is higher than true market value. Focus strictly on hard data: pull up a list of similar homes in your immediate neighborhood that have sold recently for less than your assessed value, or find factual errors on your property worksheet, such as an incorrect bathroom count or mismatched square footage. Note that complaining about the tax rate itself or past valuation percentages will not be considered by the assessor.

• Step 4: Present Your Case. You can opt for a purely written appeal by submitting your documentation, or you can request an informal 15-minute hearing (held via phone, video, or in person) with a local supervisor or assessor. They will review your neighborhood sales data, and if your evidence is clear, they will adjust your property valuation downward.

Successfully lowering your assessment keeps your holding costs low while you prepare to sell and presents an incredibly attractive, stable tax history to potential buyers. Don't let an inaccurate state computer dictate your home's financial narrative. If you want me to refer you to a local company who can make the appeal for you, reach out to me today!