How Much Is Property Tax on a $600K Home in Montgomery County, MD?

Property taxes in Montgomery County are a significant ownership cost that buyers often underestimate. On a $600,000 home, you're looking at roughly $7,500–$9,000 per year — $625–$750 per month added to your mortgage payment. Here's exactly how it breaks down and what you can do about it.

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How Montgomery County Property Tax Is Calculated

Maryland and Montgomery County property taxes are assessed on the home's taxable assessment value, which is set by the Maryland State Department of Assessments and Taxation (SDAT) — not the purchase price.

The key distinction: Your taxable assessment may be significantly different from what you paid. Maryland conducts reassessments on a triennial (3-year) cycle. If you buy a home that was last assessed three years ago at a value well below current market, your taxable assessment will be below your purchase price — until the next reassessment cycle.

However, when the reassessment comes (every 3 years), it can increase. Maryland caps annual increases at 10% per year for most homeowners — so large jumps are phased in over time.

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The Tax Rate Components

Montgomery County property taxes have multiple components:

Maryland State Property Tax Rate: $0.112 per $100 of assessed value (2025–2026). On $600,000: ~$672/year.

Montgomery County Property Tax Rate: $0.9321 per $100 of assessed value (2025–2026). On $600,000: ~$5,593/year.

Montgomery County Fire Tax: Varies by district, typically $0.043–$0.098 per $100. On $600,000: ~$258–$588/year.

Special taxing districts: Some areas have additional district taxes for transit, parks, or special services. Depends on specific location.

Combined effective rate: Approximately 1.2–1.45% of assessed value depending on location within the county.

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What You'll Actually Pay: Three Scenarios

| Home Value | Assessed Value (estimate) | Annual Tax (est.) | Monthly | |---|---|---|---| | $400,000 | $400,000 | $5,000–$5,800 | $417–$483 | | $600,000 | $600,000 | $7,500–$8,700 | $625–$725 | | $800,000 | $800,000 | $10,000–$11,600 | $833–$967 |

These estimates assume assessed value equals purchase price (typical for new purchases). Verify the specific property's current assessment and tax bill at the SDAT website before closing.

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The Homestead Tax Credit

The Homestead Tax Credit is the most important property tax protection for Maryland homeowners. Once your home is your principal residence:

• Your taxable assessment can only increase by a maximum of 10% per year (not 10% over 3 years — 10% per year, compounded)
• This protection begins after the first full tax year you own and occupy the property
• You must apply for the credit (it's not automatic) — applications are filed with the SDAT

For buyers who purchase at current market prices, the Homestead Credit protects against runaway tax increases if the market continues to appreciate significantly.

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Senior Tax Credits and Other Exemptions

Senior Tax Credit (Maryland): Homeowners age 70+ who have owned their home for at least 3 years and meet income thresholds may qualify for significant property tax reductions.

Homeowner's Property Tax Credit: Maryland offers an income-based credit for homeowners whose property taxes exceed a defined percentage of income. Income limits apply.

Veterans' Exemption: Disabled veterans may qualify for property tax exemptions depending on disability rating.

Energy credits: Solar installations may qualify for property tax assessment exclusions — the added value of a solar system may not be included in assessed value.

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How Property Taxes Are Paid

In Maryland, property taxes are due twice per year: September 30 and December 31. Most homeowners with mortgages have their property taxes escrowed — the lender collects roughly 1/12 of your annual tax bill each month and pays the county when due.

When you close on a home, you'll typically need to fund the escrow account with 2–6 months of property taxes depending on where in the tax year you close.

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Frequently Asked Questions

How much is property tax in Montgomery County, MD?

The combined effective rate for most properties is approximately 1.2–1.45% of assessed value. On a $600,000 home, expect $7,500–$8,700 per year, or $625–$725 per month included in your escrow.

How are homes assessed for property tax in Maryland?

The Maryland State Department of Assessments and Taxation (SDAT) assesses all residential properties on a 3-year cycle. The assessment is SDAT's estimate of the property's market value. You can appeal an assessment if you believe it's too high.

Can I appeal my property tax assessment in Maryland?

Yes. If you believe your SDAT assessment is too high, you can file an appeal within 45 days of receiving your assessment notice. Comparable sales data, a recent appraisal, or a professional assessment can support your appeal. Successful appeals can reduce your tax bill.

What is the Montgomery County Homestead Tax Credit?

The Homestead Credit limits annual increases in taxable assessments to 10% per year for owner-occupied primary residences. This protects homeowners from large tax spikes when property values rise quickly. You must apply for it.

Are Montgomery County property taxes high compared to Virginia?

Yes, somewhat. Montgomery County's effective rate (~1.3–1.4%) is higher than Fairfax County, Virginia (~1.0–1.1%). However, Montgomery County home prices are generally lower, so the absolute dollar amount can be comparable or lower.

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Buying in Montgomery County?

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