Maryland · Montgomery County · Local exemptions · Updated Oct 2026
Montgomery County, MD property tax exemptions (2026)
The property tax breaks that are set or run locally in Montgomery County, on top of Maryland’s statewide rules: what each is worth here, who qualifies, where to apply and the deadline.
What is different in Montgomery County
Montgomery County layers its own Senior Tax Credit and a county supplement on top of the state Homeowners' credit (one SDAT application), gives a 20% county credit for 7 years to owners 65+ who have lived in their home 40 years or are military retirees, and gives 25%-50% credits to partially disabled veterans. The Income Tax Offset Credit that once took about $692 off bills was set to $0 for levy year 2026. The Homestead cap is 10% (Kensington 5%).
Apply at
Montgomery County Department of Finance, Division of Treasury
Phone
240-777-0311
Local breaks
Homestead Property Tax Credit (local cap), Senior Property Tax Credit, Individuals 65 and Above and Retired Military Services Members Tax Credit, Property Tax Credit for Disabled Veterans, Senior Property Tax Deferral Program, Income Tax Offset Credit (ITOC)
Tax year
2026-27
Where to apply in Montgomery County
Montgomery County Department of Finance, Division of Treasury
Montgomery County tax: the taxable assessment on your home can rise at most 10% a year; State tax: 10% a year. You pay no tax on the part of an increase above the cap. Towns with a different cap for town tax: Town of Kensington 5% (see the table).
Set by
state program, local amount
Tax year
2026-27
Who qualifies
Owner-occupants of their principal residence; no age or income limit.
How to apply
One-time application to SDAT (online at Maryland OneStop / sdathtc.dat.maryland.gov, or the paper form). Check SDAT Real Property Search first: if it shows 'No Application', apply.
Individuals 65 and Above and Retired Military Services Members Tax Credit
20% of county property tax for 7 consecutive years.
Set by
county
Tax year
2026-27
Who qualifies
Owner on the deed who is 65 or older and either has owned and lived in the home for at least 40 consecutive years (assessment $700,000 or less at application) or is retired from the U.S. armed forces, NOAA or Public Health Service uniformed services, the reserves or the National Guard (assessment $550,000 or less); unremarried surviving spouses of eligible military retirees. The county page's example dates (born by June 30, 1960; deed dated by June 30, 1985) are for bills starting July 1, 2025.
How to apply
County application (and trust affidavit if titled in a trust) mailed to the Division of Treasury, Attn: Bill 42-16 Tax Credit.
Defers (without interest) the amount by which this year's county property tax exceeds last year's; a lien is recorded and the deferred tax is due when the home is sold or no longer your residence.
Set by
county
Tax year
2026-27
Who qualifies
At least one applicant 65+, living in the home as principal residence for 5 consecutive years.
Income limit
Combined household income of $80,000 or less in the previous calendar year.
How to apply
Senior Citizens Tax Deferral Application plus Tax Deferral and Lien Agreement to the Division of Treasury.
Roughly what an exemption could save you a year: the value it takes off, times your tax rate.
Eligibility finder for Montgomery County
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Document checklist for Montgomery County
Pick the breaks you plan to apply for. You get a checklist of forms, documents, steps and deadlines to print or keep on your phone.
Questions about property tax exemptions in Montgomery County
What property tax exemptions are there in Montgomery County?
Montgomery County layers its own Senior Tax Credit and a county supplement on top of the state Homeowners' credit (one SDAT application), gives a 20% county credit for 7 years to owners 65+ who have lived in their home 40 years or are military retirees, and gives 25%-50% credits to partially disabled veterans. The Income Tax Offset Credit that once took about $692 off bills was set to $0 for levy year 2026. The Homestead cap is 10% (Kensington 5%). Local breaks here: Homestead Property Tax Credit (local cap); Senior Property Tax Credit; Individuals 65 and Above and Retired Military Services Members Tax Credit; Property Tax Credit for Disabled Veterans; Senior Property Tax Deferral Program; Income Tax Offset Credit (ITOC).
Where do I apply for a property tax exemption in Montgomery County?
Montgomery County Department of Finance, Division of Treasury Phone: 240-777-0311 Address: 27 Courthouse Square, Suite 200, Rockville, MD 20850. Also: Maryland Department of Assessments and Taxation (SDAT) – Tax Credit Programs, which state program: Homestead and Homeowners' tax credits (and county supplements run through the HTC form). Also: SDAT Montgomery County Assessment Office, which SDAT local assessment office: assessments, disabled-veteran and blind exemptions.
When is the deadline to apply in Montgomery County?
Homestead Property Tax Credit (local cap): not confirmed; ask the office. Senior Property Tax Credit: October 1 (state HTC deadline). Individuals 65 and Above and Retired Military Services Members Tax Credit: April 1. Property Tax Credit for Disabled Veterans: April 1. Senior Property Tax Deferral Program: September 1 each year. Income Tax Offset Credit (ITOC): not confirmed; ask the office.
Is there an income limit for Montgomery County’s local breaks?
Homestead Property Tax Credit (local cap): no income limit listed. Senior Property Tax Credit: no income limit listed. Individuals 65 and Above and Retired Military Services Members Tax Credit: no income limit listed. Property Tax Credit for Disabled Veterans: no income limit listed. Senior Property Tax Deferral Program: Combined household income of $80,000 or less in the previous calendar year. Income Tax Offset Credit (ITOC): no income limit listed.
Do I have to reapply every year in Montgomery County?
Homestead Property Tax Credit (local cap): One-time application. Senior Property Tax Credit: Every year. Individuals 65 and Above and Retired Military Services Members Tax Credit: Credit lasts 7 years, then ends. Property Tax Credit for Disabled Veterans: not confirmed. Senior Property Tax Deferral Program: Apply every year. Income Tax Offset Credit (ITOC): not confirmed.
Good to know in Montgomery County
Montgomery County credits apply to county property tax only, not State or municipal tax.
Median effective tax rate for Montgomery County: U.S. Census Bureau, American Community Survey, 2020–2024 5-year estimates, county figures as published by Tax Foundation. The rate is property taxes paid divided by home value.