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If you own a home in Anne Arundel County, you may have recently received a property tax assessment that’s higher than expected. These increases can catch homeowners off guard, but they also present an opportunity to reassess your financial options. Whether you’re looking to challenge the assessment, take advantage of tax credits, or explore selling your home, it’s essential to make an informed decision.
Understanding Property Tax Assessments
Anne Arundel County re-assesses property values every 3 years, and these assessments determine how much you owe in property taxes. An increase in your assessment means your home’s market value has risen—at least in the eyes of the county. While this can be a sign of a strong housing market, it can also lead to a higher annual tax bill.
Fortunately, you have options when faced with a higher tax assessment. Here are three paths you can take:
1. Appeal Your Tax Assessment
If you believe your home’s assessed value is inaccurate or too high compared to similar properties in your area, you have the right to appeal.
Steps to appeal:
File an initial appeal with the Maryland Department of Assessments and Taxation (SDAT). This is your first opportunity to contest the valuation.
Take your case to the Property Tax Assessment Appeal Board if you are not satisfied with SDAT’s decision.
Further appeals can be made to the Maryland Tax Court if necessary.
Timing is crucial—most appeals must be filed within 30 days of receiving your assessment notice. If you’re considering this route, gathering recent sales data and obtaining a professional market valuation will strengthen your case.
2. Apply for the Homestead Property Tax Credit
For homeowners who intend to stay in their property long-term, Maryland offers the Homestead Property Tax Credit, which limits annual assessment increases for principal residences. In Anne Arundel County, the cap is 2% per year, which can provide relief from steep tax hikes.
To benefit from this program, you must apply and meet eligibility requirements. This credit ensures that even if your home’s value rises significantly, your taxable amount increases at a controlled rate.
3. Consider Selling Your Home
If your tax assessment has increased significantly, it may reflect strong market demand for homes like yours. This could be the right time to explore selling—especially if you were already considering a move.
A professional market valuation can help you determine whether now is the right time to list your home. If the assessed value aligns with current market conditions, selling could allow you to maximize your home’s value before tax obligations rise further.
What’s Next? Get a Market Valuation
Regardless of which path you choose, understanding your home’s true market value is essential. As experienced real estate professionals in Anne Arundel County, we can provide a comprehensive valuation to help you decide your next steps.
Options at a Glance:
✔ Appeal if you believe your assessment is too high.
✔ Apply for tax credits to reduce your liability.
✔ Sell if market conditions are in your favor.
If you have questions about your tax assessment or need help evaluating your options, contact us today. We’re here to guide you through the process and ensure you make the best decision for your financial future.