Five Things Every Anne Arundel County Homeowner Should Know About Their Property Tax Bill

David Orso

Berkshire Hathaway Home Services/PenFed Realty

For many Anne Arundel County homeowners, opening the annual property tax bill can spark confusion, frustration and often a few questions. Property taxes are one of the largest recurring costs of homeownership, yet many residents do not fully understand how their bill is calculated, when it is due or what options they may have to lower it. Here are five things every Anne Arundel County homeowner should know.

1. Your tax bill is based on your home’s assessed value — not necessarily its market value

One of the biggest misconceptions homeowners have is assuming their tax bill is based on what their home could sell for today. Anne Arundel County property taxes are based on the assessed value determined by the Maryland State Department of Assessments and Taxation (SDAT).

The state reassesses properties on a three-year cycle, meaning your tax bill may reflect a valuation that lags behind current market conditions. If home values in your neighborhood have risen dramatically, your assessment may increase gradually rather than all at once. Likewise, if market values have declined, your assessment may not immediately reflect that change.

It is important to review your assessment notice carefully to ensure it accurately reflects your property’s condition, size and features.

2. You have the right to appeal your assessment

If you believe your home has been overvalued, you are not stuck with the assessment. Anne Arundel County homeowners have the right to file an appeal with SDAT.

Common reasons to appeal include inaccurate square footage, outdated records, or comparable homes in your neighborhood being assessed lower. The appeals process typically begins with a written request and may include providing recent comparable sales data or evidence of issues with the property that impact value.

The deadline to appeal is strict, so homeowners should act quickly after receiving an assessment notice. A successful appeal can reduce your tax burden for years to come.

3. Tax credits and exemptions may significantly reduce what you owe

Many homeowners are unaware that they may qualify for property tax relief programs.

The Maryland Homestead Tax Credit is one of the most valuable protections available. It limits how much a homeowner’s taxable assessment can increase each year, even if market values rise sharply. This can provide substantial savings in fast-appreciating neighborhoods. Make sure you have applied and it is noted on your bill.

Other programs include the Homeowners’ Property Tax Credit for income-qualified residents, exemptions for veterans with disabilities, and senior tax relief options in certain cases.

If you have recently purchased a home, make sure your primary residence status is properly recorded so you receive all applicable benefits.

4. Your bill funds more than just county services

A significant portion supports Anne Arundel County Public Schools, including teacher salaries, school maintenance and educational programs. Other portions fund public safety services such as police, fire departments and emergency response, as well as libraries, parks, road maintenance and local infrastructure improvements.

Special taxing districts may also apply depending on your neighborhood, which can add costs for local services such as community improvements or watershed restoration efforts.

5. There is no such thing as a “waterfront tax”

I will often hear homeowners of a water view property say, “You get this amazing view without the waterfront tax.” That statement is 100% true because nobody has a waterfront tax. The source of this falsehood is unknown to me, but rest assured, waterfront homes are paying the same rate as non-waterfront homes.

Last but not least, the most common question I am asked is, “Why are bills sent in the middle of the year?” The property tax calendar is July 1 – June 30, not the calendar year. The bill also gives options for full payment or semi-annual payments. Taxes are complicated and it is wise to track your bill closely in a market that has seen major appreciation over the last several years.