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Updated 2025 Tax Year

Caroline County
Property Tax Guide

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

10 Official Sources
8 min read
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Quick Facts
Tax Rate
0.9800% base rate ($9.80 per $1,000 assessed value), varies by special taxing districts and municipal boundaries
1st Due
Jul 1
2nd Due
Dec 31
Exemptions
5+ Available
Section 1

How Property Tax Works

Caroline County, Maryland operates on a property tax system that serves as the primary funding source for essential local services including public schools, emergency services, road maintenance, and county administration. The county's property tax rate for FY 2025 is 0.9800% (or $9.80 per $1,000 of assessed value) for most unincorporated areas, though this rate can vary depending on your specific location within the county due to special taxing districts and municipal boundaries.

Property taxes in Caroline County are based on assessments conducted by the State Department of Assessments and Taxation, with properties reassessed on a three-year cycle. The effective tax burden varies not only by property value but also by the specific taxing district where your property is located, as areas within incorporated towns like Preston, Ridgely, Hillsboro, and Marydel may have different rates. Property owners may be eligible for various tax credits that can reduce their annual tax bill, though these typically require separate applications and are not automatically applied.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $1,000)Description
Base County Rate$9.80Standard rate for unincorporated Caroline County (FY 2025)
Hillsboro District$9.24Constant Yield Tax Rate for properties in Hillsboro area
Marydel District$9.17Constant Yield Tax Rate for properties in Marydel area
Preston District$9.14Rate for properties within Preston taxing district
Ridgely DistrictVariesRate determined by municipal boundaries and services

Note: These rates apply to Levy Year 2025 and are subject to annual adjustment. Properties located within incorporated municipalities may have additional municipal taxes. The Constant Yield Tax Rate (CYTR) system means rates can vary slightly between districts to maintain consistent revenue levels despite assessment changes.

Section 3

When Are Property Taxes Due?

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

First Installment
Jul 1
Delinquent after Dec 10
Second Installment
Dec 31
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 taxes in Caroline County are additional property tax assessments that occur when there are changes to a property's assessed value during the tax year, outside of the regular assessment cycle. Common triggers include new construction completion, major renovations that add significant value, ownership transfers that prompt reassessment, or corrections to previous assessments.

When a supplemental assessment is issued, the additional tax is calculated by applying the current tax rate to the difference between the old and new assessed values, prorated for the remaining months in the tax year. For example, if a $100,000 home improvement is completed and assessed in January, and the county tax rate is $9.80 per $1,000, the supplemental tax would be approximately $980 for the full year, or about $817 if assessed with 10 months remaining in the tax year.

Example Calculation

Example 1: $300,000 Home

  • Assessed Value: $300,000
  • Less: Homestead Credit (if applied for): Varies based on assessment increase cap
  • Net Taxable Value: $300,000 (assuming no credits applied)
  • Annual Tax: $300,000 ÷ $1,000 × $9.80 = $2,940
  • Monthly Escrow: $245

Example 2: $600,000 Home

  • Assessed Value: $600,000
  • Less: Homestead Credit (application required): Potential savings on assessment increases
  • Net Taxable Value: $600,000 (assuming no credits)
  • Annual Tax: $600,000 ÷ $1,000 × $9.80 = $5,880
  • Monthly Escrow: $490

Example 3: $1,000,000 Home

  • Assessed Value: $1,000,000
  • Less: Available tax credits (must apply separately): Varies by eligibility
  • Net Taxable Value: $1,000,000 (assuming no credits)
  • Annual Tax: $1,000,000 ÷ $1,000 × $9.80 = $9,800
  • Monthly Escrow: $817

Note: These examples use the base county rate. Actual taxes may vary based on special taxing districts and available tax credits that require separate applications.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Caroline County require property tax escrow accounts for borrowers with less than 20% down payment, though some lenders mandate escrow regardless of down payment amount. Your lender collects monthly escrow payments equal to approximately 1/12th of your annual property tax bill, plus a small cushion typically not exceeding two months of payments as allowed by federal law.

Caroline County property taxes are billed semi-annually with due dates of May 2nd and September 30th. Lenders typically pay these bills directly from your escrow account before the due dates. Your lender must provide an annual escrow analysis showing how your payments were used and any adjustments needed for the coming year. If your property taxes increase due to reassessment or rate changes, your monthly escrow payment may increase accordingly. You can verify that your lender has paid your taxes correctly by checking with the Caroline County tax office or accessing their online payment system.

How HonestCasa Helps
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Section 6

Frequently Asked Questions

Q: When are property taxes due in Caroline County for the current fiscal year? A: Property taxes are due semi-annually on May 2nd and September 30th for FY 2025.

Q: What tax credits are available and do they apply automatically? A: The primary tax credit available is the Homestead Credit, but it requires a separate application filed by October 1st deadline. This credit limits assessment increases rather than reducing your property's market value, and is NOT automatically applied.

Q: How does the Homestead Credit work? A: The Homestead Credit caps the amount of assessment increase on which you pay property taxes in a given year on your primary residence. It does not reduce your property's assessed value but limits year-over-year tax increases due to assessment growth. You must apply for this credit - it's not automatic.

Q: How often are properties reassessed in Caroline County? A: Properties are reassessed on a three-year cycle by the Maryland State Department of Assessments and Taxation. You can appeal your assessment if you believe it's incorrect.

Q: What are the penalties for late property tax payments? A: Late payments typically incur interest charges and penalties. Contact the Caroline County tax office for specific penalty rates and collection procedures.

Q: Can I pay my property taxes online? A: Check with Caroline County's official website or tax office for current online payment options and accepted payment methods.

Q: Why is my tax rate different from my neighbor's? A: Tax rates vary based on special taxing districts within Caroline County. Properties in different areas (such as Hillsboro, Marydel, Preston, or Ridgely districts) may have different rates based on local services and municipal boundaries.

Q: Where do I apply for tax credits and what's the deadline? A: Tax credit applications, including the Homestead Credit, must typically be filed with the county assessor by October 1st. Contact Caroline County's tax office for specific application forms and requirements, as most credits require documentation and are not automatically granted.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
Tax Doc
CONSTANT YIELD TAX RATE 2025dat.maryland.gov
02
County
County-Municipal Property Tax Ratesdls.maryland.gov
03
Tax Doc
2024-2025 TAX RATES & HOMESTEAD CREDIT CAPSdat.maryland.gov
04
Tax Doc
Tax Sale Scheduledat.maryland.gov
05
Tax Doc
Question and Answers on Semiannual Property Tax Paymentdat.maryland.gov
06
County
Draft EA- Caroline County, MD - Farm Service Agencyfsa.usda.gov
07
Tax Doc
Maryland Homestead Property Tax Credit Programdat.maryland.gov
08
Real Property Exemptionsdat.maryland.gov
09
Tax Doc
Homestead Tax Creditmountairymd.gov
10
May 3, 2016 Minutes.pdftalbotcountymd.gov
All sources verified as of 2025 Tax Year

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