When buying a home in Maryland, many buyers focus on the purchase price and mortgage rate—but property taxes can have just as much impact on your monthly payment. Maryland property taxes vary widely by county, and choosing one area over another can mean the difference of hundreds of dollars per month in escrow.

If you’re buying a home in Maryland in 2025, understanding how property taxes work—and how they differ by county—is critical to setting a realistic budget and avoiding surprises after closing.

This guide breaks down how Maryland property taxes work, what buyers typically pay by county, and how taxes affect affordability.

1. How Property Taxes Work in Maryland

Maryland property taxes are primarily set at the county and local level, not the state level. Each county establishes its own tax rate based on local budgets, schools, infrastructure, and public services.

Here’s how the process generally works:

• Homes are assessed by the state every three years

• The assessed value is multiplied by the county tax rate

• Property taxes are usually paid monthly through escrow as part of your mortgage payment

Because assessments and tax rates differ by location, two identical homes with the same purchase price can have very different tax bills depending on the county.

2. Why Property Taxes Matter So Much to Homebuyers

Property taxes directly impact:

• Your monthly mortgage payment

• How much home you qualify for

• Your long-term affordability as a homeowner

Many buyers are surprised to learn that property taxes can add $200–$600 per month to their payment depending on the county. This is especially important for first-time buyers who may be budgeting closely.

Ignoring property taxes—or assuming they will stay the same forever—can lead to escrow shortages and unexpected payment increases later.

3. Maryland Property Taxes by County (General Comparison)

Below is a general comparison of property tax levels by county. Exact rates change, but these trends remain consistent year over year.

Higher Property Tax Areas

• Baltimore City

• Prince George’s County

These areas tend to have higher tax rates due to denser populations, larger school systems, and expanded public services.

Moderate Property Tax Areas

• Baltimore County

• Anne Arundel County

• Howard County

These counties strike a balance between services and tax rates and are popular with buyers seeking proximity to major job centers.

Lower Property Tax Areas

• Harford County

• Frederick County

• Cecil County

• Carroll County

These counties often appeal to buyers prioritizing affordability, space, and lower monthly payments.

Example:
A $400,000 home in Baltimore City may carry thousands more per year in property taxes than a similarly priced home in Harford or Cecil County.

4. How Property Taxes Affect Your Monthly Mortgage Payment

Property taxes are typically rolled into your mortgage as part of your PITI payment:

• Principal

• Interest

• Taxes

• Insurance

Even a difference of 0.5% in tax rate can significantly impact affordability.

Example scenario:

• Home price: $400,000

• County A taxes: $4,800/year

• County B taxes: $8,000/year

That difference equals roughly $267 more per month, which can affect loan approval or comfort level.

This is why buyers often find they can afford more home in one county than another—even with the same budget.

5. Property Tax Reassessments: What Buyers Need to Know

Many buyers look at the current tax bill on a listing and assume that amount will remain the same. In reality:

• Property taxes can increase after reassessment

• New purchase prices can trigger higher assessments

• Renovations and improvements may raise taxable value

This is especially common when a home sells significantly above its previous assessed value.

Smart buyers plan for potential tax increases, not just the current bill.

6. How Homebuyers Can Plan for Property Taxes

To avoid surprises, buyers should:

• Ask lenders to estimate taxes based on purchase price, not prior assessments

• Compare counties, not just neighborhoods

• Factor taxes into affordability calculations early

• Understand exemptions or credits that may apply

Working with a local real estate professional ensures buyers understand how taxes differ by county and how that affects long-term costs.

7. Common Property Tax Mistakes Maryland Buyers Make

Some of the most common mistakes include:

• Ignoring taxes when budgeting

• Assuming the seller’s tax bill applies to them

• Not accounting for reassessments

• Focusing only on purchase price instead of monthly cost

Avoiding these mistakes can prevent payment shock and long-term financial stress.

The Bottom Line

Property taxes are one of the most important—and often overlooked—costs of owning a home in Maryland. Because tax rates vary significantly by county, where you buy matters just as much as what you buy.

Understanding how property taxes work, comparing counties carefully, and planning ahead can help you choose a home that fits both your lifestyle and your long-term budget.

Thinking About Buying a Home in Maryland?

At KNHome Group of Vybe Realty, we help buyers understand the true cost of homeownership—property taxes included—so there are no surprises after closing.

If you’re comparing counties or want help estimating your full monthly payment, visit KNHomeGroup.com to get clarity before you buy.