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Updated 2025 Tax Year

Dorchester County
Property Tax Guide

Everything you need to know about property taxes in Dorchester 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
1.142% effective rate for fiscal year 2025-2026, varies by municipality and special taxing districts
Exemptions
5+ Available
Section 1

How Property Tax Works

Dorchester County, Maryland operates on a property tax system that serves as the primary funding source for local government services, including public schools, public safety, road maintenance, and county administration. The county assesses real property at 100% of market value and applies a combined tax rate that includes both state and county components. For fiscal year 2025-2026, property owners can expect an effective tax rate of approximately 1.142% of assessed value, though this can vary significantly based on location within the county.

The actual tax rate you pay depends on your property's location within Dorchester County, as certain municipalities and special taxing districts maintain different county tax rates. These variations reflect local service levels and infrastructure needs. Property tax bills are typically sent in July and may be paid annually or semi-annually depending on your property type and payment preferences. It's important to understand that most tax credits and exemptions require formal application and are not automatically applied to your assessment.

Section 2

What Makes Up Your Tax Bill

ComponentRate per $100Description
State Real Property Tax$0.112Maryland state-level property tax
County Real Property Tax$1.030Base Dorchester County tax rate (FY 2025-2026)
Total Base Rate$1.142Combined rate before special districts

Note: These rates apply to fiscal year 2025-2026. Certain municipalities within Dorchester County have different county tax rates due to special taxing districts, municipal services, or local improvement districts. Contact the Dorchester County Assessor's office to determine the exact rate applicable to your specific property location. Personal property is taxed at a separate rate of $2.44 per $100 of assessed valuation.

Section 3

When Are Property Taxes Due?

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

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 Dorchester County are additional tax bills issued when there are changes to property ownership, new construction, or improvements that occur during the tax year. These supplements ensure that property taxes are collected on the updated assessed value for the portion of the tax year after the change occurred. Common triggers include home purchases, completion of additions or major renovations, and subdivision of property.

The supplemental tax is calculated by taking the difference between the old and new assessed values, multiplying by the applicable tax rate, and prorating for the remaining months in the fiscal year. For example, if you purchase a home in October that was previously assessed at $200,000 but now reflects a market value of $300,000, you would receive a supplemental bill for the $100,000 difference in assessed value, multiplied by the tax rate, and prorated for the remaining nine months of the fiscal year.

Example Calculation

Example 1: $300,000 Home

  • Market/Assessed Value: $300,000
  • Homestead Credit Applied: Caps future increases only
  • Net Taxable Value: $300,000
  • Tax Rate: 1.142% ($1.142 per $100)
  • Annual Tax: $3,426
  • Monthly (if escrowed): $286

Example 2: $600,000 Home

  • Market/Assessed Value: $600,000
  • Homestead Credit Applied: Caps future increases only
  • Net Taxable Value: $600,000
  • Tax Rate: 1.142% ($1.142 per $100)
  • Annual Tax: $6,852
  • Monthly (if escrowed): $571

Example 3: $1,000,000 Home

  • Market/Assessed Value: $1,000,000
  • Homestead Credit Applied: Caps future increases only
  • Net Taxable Value: $1,000,000
  • Tax Rate: 1.142% ($1.142 per $100)
  • Annual Tax: $11,420
  • Monthly (if escrowed): $952

Note: These examples assume the base county tax rate and that Homestead Credit applications have been filed. Actual taxes may vary based on special district rates and other applicable credits that require separate applications.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Dorchester County require property tax escrow accounts for borrowers with less than 20% down payment, though some lenders may require escrow regardless of down payment amount. Your lender collects approximately 1/12th of your estimated annual property tax bill with each monthly mortgage payment, depositing these funds into a dedicated escrow account. When your property tax bill becomes due, typically in July, your lender pays the county directly from your escrow account.

Lenders are required to provide annual escrow statements showing deposits, payments, and account balances. Since property taxes can change due to reassessments or rate adjustments, your monthly escrow payment may be adjusted annually. If your escrow account has insufficient funds, you may need to pay a shortage or increase your monthly payment. Conversely, if there's an overage, you may receive a refund or see reduced monthly payments. Property owners who pay taxes directly (without escrow) should budget for the July billing and consider the option of semi-annual payments if available.

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 for fiscal year 2025-2026? A: Property tax bills are sent in July and due by June 18, 2026. The county holds a tax sale on June 17, 2026 for delinquent properties.

Q: What is the Homestead Property Tax Credit and how do I apply? A: The Homestead Credit limits annual assessment increases on your primary residence, providing tax relief over time. This credit requires application and is NOT automatic. Contact the Dorchester County Assessor's office for application forms and deadlines.

Q: Are there other property tax credits available? A: Yes, various credits may be available for seniors, veterans, disabled individuals, and other qualifying circumstances. All credits require separate applications and have specific eligibility requirements. Check with the county assessor for available programs.

Q: How often are properties reassessed? A: Maryland requires assessments to reflect current market value. Contact the State Department of Assessments and Taxation (www.dat.maryland.gov) for specific reassessment schedules and procedures.

Q: Can I appeal my property assessment? A: Yes, property owners have appeal rights through the Maryland Property Tax Assessment Appeals process. Deadlines and procedures are available through the State Department of Assessments and Taxation.

Q: What are the penalties for late payment? A: Late payments incur penalties and interest charges. Properties with delinquent taxes may be subject to tax sale proceedings, as occurs annually in June.

Q: Can I pay my property taxes online? A: Check the Dorchester County website at www.dorchestercountymd.com for current online payment options and accepted payment methods.

Q: Why is my tax rate different from my neighbor's? A: Tax rates vary by location within Dorchester County due to special taxing districts and municipalities that have different county tax rates based on local services and assessments.

Q: What's the difference between annual and semi-annual payment options? A: Some properties may qualify for semi-annual payment plans. Contact the county tax office to determine if your property is eligible and for payment scheduling.

Q: Do I need to reapply for tax credits every year? A: Most tax credits require initial application only, but some may require periodic renewal or income verification. Contact the assessor's office to confirm requirements for your specific credits.

Verified Sources

Backed by 10 Official Government Sources

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

01
County
2026 Taxpayer Information - Dorchester County Governmentdorchestermd.gov
02
County
Draft-Budget-Bill-May-6-13-25.pdf - Dorchester Countydorchestermd.gov
03
Tax Doc
2024-2025 TAX RATES & HOMESTEAD CREDIT CAPSdat.maryland.gov
04
County
DORCHESTER COUNTY, MARYLAND 2025 TAX SALE ...dorchestermd.gov
05
Tax Doc
Tax Sale Scheduledat.maryland.gov
06
Land Records Departmentmdcourts.gov
07
County
Dorchester County Property Taxnacdashboard.nara.gov
08
To be completed by the VFD Member (Homeowner) Districtdorchestermd.gov
09
County
Bill No. 2023-5 - Dorchester County Governmentdorchestermd.gov
10
County
FY2023-Annual-Report.pdf - Dorchester Countydorchestermd.gov
All sources verified as of 2025 Tax Year

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