March 23, 2023

Maryland Property Taxes Are Rising in 2023: What It Means

Maryland's 2023 reassessment raises residential values 20.6%, phased in over three years. Here's what Montgomery County homeowners need to know.

Maryland property taxes are rising because the state just finished its 2023 reassessment of home values, and when assessed value goes up, the tax bill attached to it goes up too. The Maryland Department of Assessments and Taxation reassessed one group of properties this cycle, covering roughly a third of the state’s tax accounts, and residential values in that group climbed an average of 20.6 percent. That jump will not land on your bill all at once. Maryland spreads reassessment increases out over three years, so the hit shows up gradually instead of as one lump-sum shock. For homeowners here in Montgomery County, this means higher property taxes are on the way, buyers need to build that cost into their budget now, and sellers are sitting on more home equity than they may have realized. Here’s what’s actually happening and what I’d do about it.

Why Did Maryland Reassess Property Values This Year?

Maryland reassesses property values on a set schedule, not randomly. The state runs a triennial system, meaning every property gets a fresh look once every three years. This year’s cycle covered “Group 2,” a specific rotating slice of the state’s more than 2 million tax accounts that includes both residential and commercial properties. TheMaryland State Department of Assessments and Taxationhandles this process statewide, and its reassessment notices are where homeowners first learn their new value.

What Is a “Group,” and Why Does It Matter to You?

Maryland splits every property in the state into three rotating groups so the workload of reassessing 2 million-plus accounts doesn’t hit all at once. Each group gets reassessed once every three years, on a staggered schedule. If your property wasn’t in Group 2, don’t relax too fast — Group 3 is scheduled to get its notice next, and it will follow the same pattern. Knowing which group you’re in tells you when to expect your next reassessment letter and helps you plan ahead instead of getting blindsided.

How Much Are Residential Property Taxes Actually Going Up?

The statewide average increase for residential properties in this reassessment group is 20.6 percent. That number is an average across the group, so your individual notice could land higher or lower depending on what’s happened to values in your specific neighborhood. In Montgomery County, where home values have stayed strong, plenty of owners are seeing increases in that range or above it. Higher assessed value is good news for your net worth and bad news for your tax bill — both at the same time.

Why Is the Increase Phased in Over Three Years Instead of All at Once?

Maryland phases in these increases deliberately, as a cushion. Rather than charging homeowners the full 20.6 percent bump in year one, the state spreads the increase across three years so the jump in your monthly or annual tax obligation is gradual rather than sudden. This matters most for owners on fixed incomes or tight budgets, since a phased approach gives you time to adjust rather than absorbing the entire increase in a single tax year.

What Does This Mean If You Already Own a Home in Montgomery County?

If you already own here, expect your property tax bill to climb over the next three years, even if nothing about your home changes. For homeowners on a fixed income, or anyone already feeling squeezed by inflation, this is worth planning for now rather than reacting to later. I’d recommend checking your specific assessment notice, understanding which phase-in year you’re in, and adjusting your budget accordingly. You can see how local values have moved on mymarket stats pageto get a sense of whether your neighborhood is tracking with or above that statewide average.

What Does This Mean If You’re Buying a Home in Maryland Right Now?

If you’re house hunting, rising property taxes need to be part of your monthly budget math, not an afterthought after closing. A home that looks affordable based on list price alone can carry a meaningfully higher carrying cost once the current tax rate and pending phase-in are factored in. This is especially true for buyers relocating into Montgomery County from lower-tax states, where the total monthly payment can come as a surprise. If you’re weighing a move here, myMontgomery County relocation guidewalks through what to expect on cost of living, including taxes.

Is There Any Upside to Rising Assessments?

Yes — rising assessments mean rising home values, and that’s a direct increase in your equity. It’s a trade-off: you can’t get the cake and eat it too. Values go up, your net worth goes up, and your tax bill goes up right alongside it. For sellers, this is actually good news, since it usually signals a stronger resale position. For owners planning to stay put for years, it’s simply the cost of living in an area where demand keeps pushing values higher.

Where Can You Verify Your Own Assessment and Tax Rate?

Start with your official reassessment notice from the Maryland Department of Assessments and Taxation, then cross-check your specific rate and billing details throughMontgomery County’s property tax resources. Between the two, you’ll have the full picture: what the state says your home is worth, and what the county will actually bill you based on that value.

Frequently Asked Questions

Does every Maryland homeowner get reassessed at the same time?

No. Maryland splits properties into three groups, and each group is reassessed once every three years on a staggered schedule. Only one group gets new values each cycle.

Will my property tax bill jump 20.6 percent all in one year?

No. That 20.6 percent figure is the average increase for this reassessment group, and it’s phased in gradually over three years rather than applied all at once.

How do I know which group my property is in?

Your reassessment notice from the Maryland Department of Assessments and Taxation will tell you, and you can also look up your account directly through the state’s assessment records.

Should rising taxes change my decision to buy a home in Montgomery County right now?

Not necessarily, but it should change how you budget. Factor the phased-in tax increase into your monthly costs before you commit to a price range, and lean on local data before you shop.

Does a higher assessment mean I should sell now?

Not automatically. A higher assessment does confirm your equity has grown, which is worth factoring into any decision about selling, refinancing, or holding. It’s worth a conversation before you decide either way.

Rising taxes are part of owning real estate in a market where values keep climbing, and Montgomery County is no exception. Whether you’re trying to plan around a higher bill, budget for a purchase, or figure out what your equity position actually looks like right now, I’d rather you have real numbers than guesswork. If you want to talk through your specific situation,reach out directlyor read more aboutwhy homeowners here work with me.

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