Baltimore Mayor’s Upcoming Tax Plan Announcement
Baltimore’s Mayor, Brandon Scott, is set to present a plan on Monday aimed at lowering property taxes for certain city residents. This will involve modifications to existing tax credit programs.
Scott will detail this strategy during a morning press conference, which includes several key components designed to alleviate the tax burden for some homeowners.
The Scott administration notes that these combined efforts should lead to lower property taxes for various homeowners. The actual savings might differ among residents, but those with homes whose values are increasing more slowly are expected to gain the most from these adjustments.
For example, officials project that a homeowner with a property valued at $100,000 could save $129 over a three-year period if their tax bill rises by $10,000 (which is a 10% hike). In contrast, an owner of a $500,000 home could see savings of $678 over three years if their home value increases by $30,000 (a 6% rise).
However, homeowners whose properties appreciate rapidly might not see much, if any, savings. For instance, a resident with a $300,000 home would not benefit even if the value jumped by $100,000 over three years.
Last year, the average residential property tax bill in Maryland went up by 13.2%.
Scott has acknowledged that the city’s current property tax structure is a hurdle for homeownership, impeding growth in Baltimore. In his 2025 State of the State address, he expressed his intention to reduce the city’s property tax rate to below 2%. However, this target has been pushed to 2029 rather than 2028.
While the proposed tax credit changes could lead to residents effectively paying less than 2% in taxes, the plan does not involve an immediate cut to the city’s tax rate. Currently, residents pay 2.248% of their property’s assessed value. Scott’s decade-long plan aims to adjust that rate down to 2.13% by 2030, but he would need to secure a third term in office for it to be enacted.
With pressure mounting on city leaders to reduce high property tax rates compared to nearby areas, one group, Renew Baltimore, attempted to get a proposal on the ballot for a tax reduction to 1.2% over seven years, believing it could stimulate growth, attract investments, and combat crime. Unfortunately, the Baltimore City Board of Elections dismissed the petition, citing a violation of state law, a decision later supported by the state Supreme Court, which ruled it would diminish city leaders’ authority.
Recently, Baltimore’s property tax revenue has consistently outpaced budget estimates, bringing in $11.7 million in fiscal year 2025 alone.
Some of Scott’s proposed tax changes will require action from the City Council. For instance, the Homestead Property Tax Credit, which limits annual tax hikes to a certain percentage, has been capped at 4% since the 1990s. A new bill aims to increase that cap to 6%.
Officials have indicated that adjusting the homeowner tax credit would allow for broader eligibility among homeowners for tax credits, continuing a project initiated by former Mayor Stephanie Rawlings-Blake. However, these changes must be approved by the Board of Estimates, which operates under the mayor’s oversight.
City leaders are also looking to broaden participation in the state’s property tax credit for homeowners, with the Scott administration advocating for an increase in the income threshold for eligibility to account for inflation. Presently, households making more than $60,000 do not qualify.
Moreover, Scott hopes to collaborate with nonprofits to assist in enrolling more residents in the state’s renter tax credit program, which, like the homeowner credits, is based on household income.
