By Megan Sayles
AFRO Staff Writer
msayles@afro.com
Mayor Brandon M. Scott announced two efforts aimed at delivering tax relief to residents on Feb. 9. The first initiative seeks to reduce the effective property tax rate for residents below $2, and the second reforms the city’s annual tax sale, including creating payment plans for residents to settle overdue tax bills.
During the announcement, Scott emphasized that lowering property taxes is essential to attracting new residents and retaining existing Baltimoreans.
“Live Baltimore released a study that showed our city could grow by more than 20,000 households over the next five years. We know the majority of the folks interested in becoming homeowners in our city are our current residents, including renters who want to move within the city,” said Scott. “All of that is great news for us, and we’ve already taken action to make homeownership more attainable, especially for renters through downpayment assistance, our first time homebuyer incentive program, and the very successful, new Buy Back the Block program, but we know that our property tax rate is still a barrier to homeownership in the city.”
Scott said the city’s first step in providing tax relief will be revising the Homestead Property Tax Credit, which has not been updated since the 1990s. Currently, the credit limits how much a homeowner’s property taxes can go up each year to 4 percent. The city is proposing to raise that limit to 6 percent, which would bring Baltimore in line with other Maryland cities.
The second step is to increase the Targeted Homeowners Tax Credit (THTC), bringing the effective tax rate below $2 in fiscal year 2027. Scott said the boost will offset the change to the Homestead Property Tax Credit, providing overall tax relief for most homeowners.
The city is also launching a campaign to promote greater resident enrollment in state tax credits and working with state leaders to refresh Maryland’s Homeowners’ Property Tax Credit for the first time in decades.
Baltimore City Council Vice President Sharon Green Middleton, who is sponsoring a bill to change the city’s Homestead Property Tax Credit, praised the mayor’s collaborative leadership on these efforts.
“We are all aware that property taxes in Baltimore are excessively high. This situation not only discourages new residents from moving to Baltimore but it also drives current residents away. That’s why I’m proud to team up with Mayor Scott on this property tax relief strategy aimed at making Baltimore more affordable,” said Middleton. “In my 19 years on the city council, this is the first coordinated strategy we’ve had to reduce property taxes below $2.”
Tax sale reforms
Back in 2024, Maryland Legal Aid, a statewide nonprofit law firm, sued the city of Baltimore over its tax sale process, alleging that it was a predatory, unconstitutional system that does not provide just compensation to property owners. This year, the city reached an agreement with Maryland Legal Aid to stay the lawsuit for two years.
During this time, the city will begin making adjustments to the tax sale process, including offering payment plans and raising the minimum bid to match the property’s assessed value rather than the lien amount.
Vicki Schultz, executive director for Maryland Legal Aid, noted the efforts were a meaningful step forward in enhancing fairness.
“For too long, Baltimore residents have lost their homes over small tax bills and received far less than the value of their homes. Older homeowners and, specifically, Black homeowners have been hit hardest, losing not just a place to live but the chance to pass their home on to the next generation,” said Schultz. “By keeping people in their homes, we protect families, preserve generational wealth and strengthen neighborhoods. We commend Mayor Scott and his administration for entering into this agreement and recognizing that housing stability benefits all Baltimoreans.”
Baltimore City Councilwoman Odette Ramos will be crafting legislation to create the payment plans, which the mayor said will be as straightforward as possible. Residents can visit: baltimorecity.gov/propertypaymentplans to sign up for an alert when the applications go live.
“These payment plans, and this broader tax relief strategy add up to real impact for homeowners here in Baltimore and will help those who want to become homeowners achieve that dream,” said Scott. “Baltimore, our renaissance is here, and we want to make sure our residents are the first to benefit from the historic growth of our city.”
