Homestead Deductions in DC and MD
If you buy your home in DC or in Maryland, and will live in the property, you will want to apply for the homestead deduction.
The homestead deduction will limit how much your property taxes can increase annually and potentially reduce your tax bill.
In DC, with the homestead deduction your assessed value will be reduced by $73,350. This drops your monthly property taxes by $51.95. More information: https://otr.cfo.dc.gov/page/homesteadsenior-citizen-deduction The application for the program is here. The homestead deduction will also limit your annual property tax increases by 10%.
In Maryland, the Homestead Tax Credit will also reduce the impact of rising assessments on your tax bill. Your property tax increases will be limited to 10% or less on an annual basis, provided you live in the property and receive the homestead credit on your tax bill. The application for this program is here, or apply online here.
Certain counties, in addition, will give you a reduction on your property taxes. Around June of each year, the county council will vote on whether to include a property tax deduction for homeowners who live in their property. In Montgomery County for example the reduction is $692 a year which is $57.66/mo.