For Immediate Release: Tuesday, April 4, 2023

Montgomery Homeowners Will Lose $692 ‘County Income Offset Tax Credit’ If They Do Not Follow New Requirement to First Apply for ‘Maryland Homestead Credit’ by May 1

Montgomery County homeowners in past years have automatically received a $692 County “Income Tax Offset Credit” (ITOC) on their annual property tax bills if it referred to a home that was their primary residence. However, a new Maryland requirement, that is in place for the first time in 2023, requires that every homeowner apply for the “Maryland Homestead Tax Credit” by May 1 to qualify for the Montgomery ITOC. Homeowners who do not apply for the Homestead credit will lose the Montgomery ITOC.

Montgomery County’s Income Tax Offset Credit program grants County homeowners a $692 tax credit if the home is their primary residence. The new State law requires residential property owners who have been receiving the State Homestead Tax Credit (HTC) to reapply for that with the Maryland State Department of Assessments and Taxation (SDAT) before May 1. By applying for the Homestead credit, they could then be eligible for the County ITOC.

If a property owner received the ITOC credit previously, but does not apply for the Homestead credit before the May 1 deadline, they will be billed $692 on their July 2023 property tax bill and will not receive the tax credit until the State processes their application. Once the application is on file, it will automatically apply to future years.

Montgomery County’s Department of Finance in March mailed postcards to that still has not applied for the Homestead Tax Credit to let them know how to rectify their status.

Homeowners should not assume that they already have a Homestead application on file.

“The $692 Income Tax Offset Credit is important to every residential homeowner,” said County Executive Marc Elrich. “We have taken important steps to make sure homeowners are aware of this new state requirement to apply for the credit—even if they have received it in the past.  I want to thank our Department of Finance and innovation team for developing postcards that we sent to 80,000 households trying to catch their attention. I urge every homeowner to make sure they apply for the Homestead credit so they do not lose the County ITOC.”

Montgomery County Department of Finance records indicate that more than 80,000 properties do not currently have a State Homestead application on file and are at risk for losing the County ITOC credit.

For information on how to check the status of the Homestead Tax Credit for an individual home, and for more detailed instructions and language assistance, a property owner can go to https://montgomerycountymd.gov/finance/itoc.html.

To apply for the Homestead Tax Credit directly, go to the State Department of Assessments and Taxation’s website at https://sdathtc.dat.maryland.gov/ or call the State Department of Assessments and Taxation at 410-767-2165.

# # #

Media contact: Neil H. Greenberger, 240-205-1915, or neil.greenberger@montgomerycountymd.gov