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Updated 2025 Tax Year

Allegany County
Property Tax Guide

Everything you need to know about property taxes in Allegany County, MD. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
Quick Facts
Tax Rate
Base rate: 6.43 mills ($0.643 per $100 assessed value), varies by district with municipal and special assessments
1st Due
Jul 1
2nd Due
Dec 1
Exemptions
5+ Available
Section 1

How Property Tax Works

Allegany County, Maryland operates under a property tax system that serves as the primary funding source for essential local services including public schools, law enforcement, fire protection, road maintenance, and county government operations. Property taxes are administered by the Allegany County Department of Assessments and Taxation in coordination with Maryland's State Department of Assessments and Taxation (SDAT).

For the 2025 tax year, Allegany County's base property tax rate is 6.43 mills, which translates to $0.643 per $100 of assessed value. However, actual tax rates vary by location within the county due to special taxing districts, municipal taxes, and additional assessments for services like fire protection or sanitary districts. Property owners should verify their specific tax rate based on their property's location, as urban areas and incorporated municipalities may have different effective rates than rural areas.

The county follows Maryland's assessment practices where properties are reassessed every three years, with the most recent countywide assessment cycle determining current assessed values. Property owners receive annual tax bills that reflect these assessments along with any applicable tax credits or special district charges.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $100)Description
County General Tax$0.643Base county property tax rate for FY 2025-2026
Municipal TaxesVariesAdditional taxes for incorporated cities/towns (if applicable)
Special DistrictsVariesFire districts, sanitary districts, or other special assessments
School BondsIncluded in baseDebt service for school construction projects
General Obligation BondsIncluded in baseCounty infrastructure and capital improvements

Note: The 6.43 mill rate applies to the county's general tax levy for fiscal year 2025-2026. Properties located within incorporated municipalities such as Cumberland, Frostburg, or Westernport may be subject to additional municipal property taxes. Special taxing districts for fire protection, sanitary services, or other local improvements can add to the effective tax rate. Property owners should contact the Allegany County Department of Assessments and Taxation to determine their specific total tax rate based on property location.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Allegany County, property taxes are due in two installments:

First Installment
Jul 1
Delinquent after Dec 10
Second Installment
Dec 1
Delinquent after Apr 10
Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental property taxes in Allegany County are triggered by specific events that change a property's assessed value during the tax year. The primary triggers include change of ownership through sale or transfer, completion of new construction, additions or major improvements to existing structures, and changes in property use classification.

When a supplemental assessment occurs, the tax is calculated based on the difference between the old and new assessed values, prorated for the remaining months in the tax year. For example, if a property sells in January and the new assessment increases the value from $200,000 to $250,000, the supplemental tax would be calculated on the $50,000 difference at the current tax rate, applied for the remaining 11 months of the fiscal year.

Supplemental tax bills are typically issued 30-60 days after the triggering event and become due immediately upon issuance. These taxes are separate from the annual property tax bill and must be paid according to the specific due date listed on the supplemental bill to avoid penalties and interest charges.

Example Calculation

Example 1: $300,000 Home

  • Market/Assessed Value: $300,000
  • Less Homestead Credit (if applied): -$0 (caps future increases)
  • Net Taxable Assessment: $300,000
  • Annual Tax ($300,000 × 0.00643): $1,929
  • Monthly Payment: $161

Example 2: $600,000 Home with Homestead Credit

  • Market/Assessed Value: $600,000
  • Less Homestead Credit: -$0 (limits assessment growth to 10% annually)
  • Net Taxable Assessment: $600,000
  • Annual Tax ($600,000 × 0.00643): $3,858
  • Monthly Payment: $322

Example 3: $1,000,000 Property

  • Market/Assessed Value: $1,000,000
  • Less Senior Citizen Tax Credit (if qualified): -$200 maximum credit
  • Net Tax Due: $6,430 - $200 = $6,230
  • Monthly Payment: $519

Note: Tax credits require annual application and approval. The Homestead Credit limits assessment increases rather than reducing current assessed value. Additional special district taxes may apply depending on property location.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Allegany County require property tax escrow accounts to ensure timely payment of property taxes. Lenders typically collect monthly escrow payments equal to 1/12 of the annual property tax bill plus a small cushion amount as allowed by federal regulations. These funds are held in a separate escrow account and used to pay property taxes when due.

Property tax bills in Allegany County are mailed annually in late fall or early winter, with payment due dates extending through April 30 of the following year. Lenders usually pay property taxes during the gross payment period to take advantage of any available discounts. For the current tax year, a 2% discount is available for payments made by March 31, 2026, with the final payment deadline of April 30, 2026.

Property owners with escrowed taxes should review their annual escrow analysis statement to ensure adequate funds are being collected. If property taxes increase due to reassessment or rate changes, escrow payments may need adjustment to prevent shortages that could result in the lender paying taxes and charging the borrower for the advance.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are property taxes due in Allegany County? A: For the current tax year, the gross payment period ends April 30, 2026. A 2% discount is available for payments made by March 31, 2026. Taxes become delinquent on May 1, 2026, with a 5% penalty plus 1% monthly interest.

Q: What tax credits are available and how do I apply? A: Allegany County offers several tax credits including the Homestead Credit (limits assessment increases to 10% annually), Senior Citizen Tax Credit, Disabled Veteran Credit, and others. All credits require annual application through the Maryland State Department of Assessments and Taxation. Applications must typically be filed by September 1st for the following tax year.

Q: How does the Homestead Credit work? A: The Homestead Credit caps the annual increase in assessed value to 10% for owner-occupied principal residences. This credit does not reduce your current assessment but limits future assessment growth. You must apply initially, and the credit continues automatically as long as you remain eligible.

Q: How often are properties reassessed? A: Allegany County follows Maryland's three-year assessment cycle. Properties are physically inspected and reassessed every three years, with annual updates for market changes, new construction, or property improvements between full assessments.

Q: What happens if I pay my property taxes late? A: A one-time penalty of 5% of the gross tax due is applied on May 1, 2026, for delinquent taxes. Additionally, interest of 1% of the gross tax amount is charged monthly. Continued delinquency can result in tax sale proceedings.

Q: Can I pay my property taxes online? A: Yes, Allegany County accepts online property tax payments through their official website. Electronic payments are typically processed immediately, and confirmation receipts are available for printing.

Q: How do special district taxes work? A: Properties located within special taxing districts (fire districts, sanitary districts, etc.) pay additional taxes beyond the base county rate. These appear as separate line items on your tax bill and fund specific local services.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Maryland Property Tax Assessment Appeal Board within 60 days of receiving your assessment notice. Appeals can be based on valuation errors, incorrect property information, or inequitable assessment compared to similar properties.

Q: What exemptions are available for non-profit organizations? A: Qualifying non-profit, religious, and charitable organizations may receive property tax exemptions. Applications must be filed with SDAT and meet specific criteria regarding property use and organizational purpose.

Q: Are personal property taxes separate from real estate taxes? A: Yes, Maryland assesses personal property taxes on business equipment, vehicles, and other personal property separately from real estate. Business owners should contact the county for personal property tax requirements and filing deadlines.

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