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Updated 2025 Tax Year

Montgomery County
Property Tax Guide

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

7 Official Sources
8 min read
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Quick Facts
Tax Rate
1.04% effective rate (varies by municipality and special districts)
1st Due
Jul 1
2nd Due
Dec 1
Exemptions
5+ Available
Section 1

How Property Tax Works

Montgomery County, Maryland operates under a comprehensive property tax system that serves as the primary funding mechanism for essential local services including public schools, police and fire protection, parks and recreation, libraries, and infrastructure maintenance. The county's property tax system is administered at both the state and county levels, with the Maryland Department of Assessments and Taxation handling property assessments and the Montgomery County Department of Finance managing tax collection.

Property owners in Montgomery County can expect an effective tax rate of approximately 1.04%, which is competitive with other jurisdictions in the Washington, D.C. metropolitan area. This rate combines various components including general county operations, Montgomery County Public Schools (MCPS), transit services, fire district services, and the Maryland-National Capital Park and Planning Commission (M-NCPPC). The county reassesses all properties triennially to ensure fair market valuations, and property taxes are typically paid semi-annually with bills issued twice per year.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
General County$0.4247Funds general county operations, services, and infrastructure
Montgomery County Public Schools (MCPS)$0.4247Primary funding for public education system
Transit Services$0.0754Supports public transportation including Ride On bus service
Fire District Tax$0.0400Funds fire and rescue services countywide
M-NCPPC$0.0754Maryland-National Capital Park and Planning Commission services
Total Combined Rate$1.0402Per $100 of assessed value (effective July 1, 2025 - June 30, 2026)

Note: Rates are expressed per $100 of assessed value and may vary slightly in certain special taxing districts.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Montgomery 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 Montgomery County are triggered by specific events that change the ownership or assessed value of a property during the tax year. The primary triggers include ownership changes through sale or transfer, completion of new construction projects, additions or major improvements to existing properties, and subdivision of land. When these events occur, the county assesses the difference between the old and new property values and calculates a prorated tax for the remaining portion of the fiscal year.

The supplemental tax is calculated by taking the difference between the new assessed value and the previous assessed value, multiplying by the current tax rate, and then prorating based on the number of months remaining in the fiscal year. For example, if a property's assessed value increases by $50,000 due to completed renovations in January, and there are six months remaining in the fiscal year, the supplemental tax would be: ($50,000 ÷ 100) × $1.0402 × (6 ÷ 12) = $260.10.

Example Calculation

Example 1: $300,000 Property

  • Assessed Value: $300,000
  • Less Homeowners' Exemption: -$0 (varies by eligibility)
  • Net Taxable Value: $300,000
  • Annual Tax: ($300,000 ÷ 100) × $1.0402 = $3,120.60
  • Monthly Escrow: $260.05

Example 2: $600,000 Property

  • Assessed Value: $600,000
  • Less Homeowners' Exemption: -$0 (varies by eligibility)
  • Net Taxable Value: $600,000
  • Annual Tax: ($600,000 ÷ 100) × $1.0402 = $6,241.20
  • Monthly Escrow: $520.10

Example 3: $1,000,000 Property

  • Assessed Value: $1,000,000
  • Less Homeowners' Exemption: -$0 (varies by eligibility)
  • Net Taxable Value: $1,000,000
  • Annual Tax: ($1,000,000 ÷ 100) × $1.0402 = $10,402.00
  • Monthly Escrow: $866.83

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Section 5

Escrow & Property Taxes

Most Montgomery County property owners with mortgages have their property taxes collected through an escrow account managed by their mortgage lender. The lender collects monthly payments equal to 1/12 of the annual property tax bill and holds these funds in an escrow account. When property tax bills become due, typically in July and December, the lender pays the taxes directly to Montgomery County on behalf of the homeowner.

Property owners should verify that their lender has current tax information and is making timely payments to avoid penalties or interest charges. The Montgomery County Department of Finance maintains detailed records and payment options at https://www.montgomerycountymd.gov/finance/taxes.html, where taxpayers can view their account status, payment history, and make direct payments if needed. Lenders are required to provide annual escrow statements showing deposits, payments, and account balances, and homeowners should review these statements to ensure adequate funds are being collected for property tax obligations.

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 Montgomery County? A: Property taxes are typically due semi-annually, with bills usually issued in July and January for the following six-month periods.

Q: What exemptions are available to reduce my property tax bill? A: Montgomery County offers various exemptions including homeowners' tax credits based on income eligibility, senior citizen credits, disability exemptions, and veterans' exemptions. Contact the county assessor for specific qualification requirements.

Q: How often are properties reassessed in Montgomery County? A: Montgomery County conducts comprehensive property reassessments every three years, though the county may also conduct interim assessments for properties that have undergone significant changes.

Q: How do I appeal my property assessment? A: Property assessment appeals must be filed with the Maryland Department of Assessments and Taxation within 45 days of receiving your assessment notice. Visit https://dat.maryland.gov/realproperty/ for appeal forms and procedures.

Q: What happens if I pay my property taxes late? A: Late payments incur interest charges and penalties. Interest typically begins accruing the day after the due date at rates set by state law.

Q: Can I pay my property taxes online? A: Yes, Montgomery County offers online payment options through their official website. Electronic payments, checks, and money orders are accepted payment methods.

Q: What happens to my property taxes if I sell my home mid-year? A: Property taxes are typically prorated between the buyer and seller at closing based on the closing date, with each party responsible for their portion of the annual tax bill.

Q: How do I verify that my property taxes have been paid? A: You can check payment status online through the Montgomery County tax portal or contact the Department of Finance directly to verify payment history and current account status.

Verified Sources

Backed by 7 Official Government Sources

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

01
County
Montgomery County Assessordat.maryland.gov
02
Tax Doc
Local Real Property Tax Rates in Marylanddls.maryland.gov
03
County
Special County Property Tax Ratesdls.maryland.gov
04
Tax Doc
2025 LEVY YEAR PERSONAL PROPERTY TAX RATE ...montgomerycountymd.gov
05
Tax Doc
Supplemental Homeowners Property Tax Creditmontgomerycountymd.gov
06
Frequently Asked Questions - Department of Financemontgomerycountymd.gov
07
Tax Doc
Supplemental Tax Bill Types and Coverage - MC311www3.montgomerycountymd.gov
All sources verified as of 2025 Tax Year

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