FAQs • Caroline County, MD • CivicEngage

What is the Homestead Credit?: The Homestead Credit is a credit against state, county, and municipal property taxes. It is designed to decrease the tax liability for owner occupied properties that experience rapidly increasing assessments. There is a cap of 10% on state-taxable assessment increases from one year to the next. There is a 5% cap on county-taxable assessment increases from one year to the next. You must apply to the state department of assessments for a one-time application for this credit. It is no longer automatically calculated. If you would like additional information on the Homestead Credit, please visit the SDAT website.

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Property Taxes - Can I get a break on my property taxes?

1. What is the significance of "principal residence" on my tax bill?: Your tax bill must indicate your property as a "principal residence" in order to be eligible for Homestead credit benefits. You also must have filed a one-time Homestead Application as well as having the Principal Residence designation in order to receive the Homestead Credit. Also, if your property is not designated as a "principal residence," you are not eligible for the semi-annual payment schedule option and your tax bill will only reflect the annual payment due on September 30. Should you feel that your property has been designated incorrectly, please contact the supervisor of assessments for Caroline County, 207 South Third Street, Denton, Maryland 21629 at 410-819-4450.

2. Are there any tax programs that provide tax relief based on income?: The State Homeowner's Property Tax Credit Program provides property tax credits for homeowners of all ages who qualify on the basis of a comparison of their tax bill to their income. Anyone whose combined gross household family income is below $30,000 should consider filing an application. Applications can be picked up at the Caroline County Tax Office at 109 Market Street Room 133, Denton, Maryland 21629 or the State Department of Assessments for Caroline County at 207 South Third Street, Denton, Maryland 21629 at 410-819-4450. The cutoff for this credit for taxpayers under age 70 is September 1.

3. What is the Homestead Credit?: The Homestead Credit is a credit against state, county, and municipal property taxes. It is designed to decrease the tax liability for owner occupied properties that experience rapidly increasing assessments. There is a cap of 10% on state-taxable assessment increases from one year to the next. There is a 5% cap on county-taxable assessment increases from one year to the next. You must apply to the state department of assessments for a one-time application for this credit. It is no longer automatically calculated. If you would like additional information on the Homestead Credit, please visit the SDAT website.

4. What is the County Senior Credit?: This credit is for seniors 70 and over who have owned property in Caroline County for 15 years. You can download the senior credit form from our site. If you currently receive a Homeowners Credit from the state you will also receive the senior credit without having to fill in the county form. Once you have filed a form with the county, you do not need to file again.
Download the form here

5. Are there other exemptions that taxpayers can apply for?: The State of Maryland provides for other exemptions including those for disabled veterans and blind persons. More information is available at the State Department of Assessments and Taxation website.