montgomery county civic federation, inc.

Maryland Homeowner’s Property Tax Credit Calculator (Beta Version 2.02)

Exclusively for Properties in Montgomery County

The State of Maryland, Montgomery County, and some municipalities (including Rockville) offer credits against a homeowner’s property tax bill if the property taxes exceed a percentage of a homeowner’s gross income.  If your income was $60,000 or less in 2015 (or $91,000 or less if you live in Rockville), there is a good chance that you can cut your property tax bill by hundreds or thousands of dollars by applying for the Homeowner’s Property Tax Credit.

Every year, many homeowners who are eligible for the credit fail to apply because they either don’t know about the credit or don’t realize that the small amount of paperwork required to apply can save them hundreds or thousands of dollars.  This calculator is intended to encourage homeowners to apply for the credit.

Although there are many fields in the form below, most homeowners will need to fill in only a few of the fields to determine the amount of their Homeowner’s Tax Credit.

The actual Homeowner’s Tax Credit application must be submitted on a paper form that takes about 20 minutes to complete.  However, unlike an income tax return, the paper application does not enable the applicant to determine the amount of the tax credit.  Calculating the Homeowner’s Tax Credit manually is very complex, but this calculator makes the process fast and simple.

To use the calculator, you will need your current Montgomery County property tax bill, which you should have received around July 1, 2016.  You will also need your 2015 Federal Income Tax return (IRS form 1040, form 1040A, or form 1040EZ, whichever you filed).

Click Here to Obtain a Copy of your Montgomery County Property Tax Bill.

Note:  If any non-owners age 18 or older (renters) reside in your home, you will need to know the total amount of rent that they pay annually.  Alternatively, if the non-owners do not pay any rent, you will need to know their income from their IRS form 1040, form 1040A, or form 1040EZ.  For example, if you have adult children living at home, you can either enter their annual rent if you charge them rent or include their income, including tax-exempt income, in the income fields in the form below.  If the only adults (over 18) who reside full time in your home are the owners, then do not enter anything in the Yearly Rent Received box.

Fill in the form below to calculate how much money you could save by applying for the Homeowner’s Tax Credit.

Montgomery County Homeowner’s Property Tax Credit Calculator

Assessed value from your property tax bill.  Default is shown.  Change to match your property tax bill.

County tax rate from your property tax bill.  Default is shown.  Change to match your property tax bill.

Municipal tax rate from your property tax bill.  (Specify zero if you do not live in a municipality.)

Income Tax Offset Credit from your property tax bill (always $692.00 in 2016).  This is labeled COUNTY PROPERTY TAX CREDIT on your property tax bill.

Total amount of additional credits, such as homestead credits, energy savings device credit, historic property credit, disabled owner credit, veteran credit, etc. from your property tax bill.  (Specify zero if no additional credits are shown on your tax bill.)  Do NOT add in any STATE HOMEOWNER’S CREDIT, COUNTY HOMEOWNER’S CREDIT or any municipal HOMEOWNER’S CREDITs, such as ROCKVILLE HOMEOWNER’S CREDIT.

Is at least one property owner age 65 or older as of September 1, 2016?  (Y/N)

Yearly rent received (See instructions above.  Specify 0 if no rent received.)

Obtain the following fields from your 2015 IRS form 1040, 1040A, or 1040EZ (For any values that are blank on your IRS form, specify 0.):

Income:  Form 1040 Line 22, 1040A Line 15, or 1040EZ Line 4

Tax Exempt Interest Income:  Form 1040 Line 8b or 1040A Line 8b

Qualified dividends:  Form 1040 Line 9b or 1040A Line 9b

IRA distributions:  Form 1040 Line 15a or 1040A Line 11a

IRA distributions taxable amount:  Form 1040 Line 15b or 1040A Line 11b

Pensions and annuities:  Form 1040 Line 16a or 1040A Line 12a

Pensions and annuities taxable amount:  Form 1040 Line 16b or 1040A Line 12b

Social security benefits:  Form 1040 Line 20a or 1040A Line 14a

Social security benefits taxable amount:  Form 1040 Line 20b or 1040A Line 14b

Your Results

[Amounts will fill in after you press the “Calculate My Credit” button above.]

Your STATE HOMEOWNER’S CREDIT is $0.00.  This will appear on your tax bill if you have qualified for this credit.

Your base Montgomery County Homeowner’s Credit is $0.00.  This will not appear on your tax bill.

Your Montgomery County Homeowner’s Credit Senior Supplement is $0.00.  This will not appear on your tax bill.

Your total MONTGOMERY COUNTY HOMEOWNER’S CREDIT, which is comprised of your base county credit plus your senior supplement, if applicable, is $0.00.  This will appear on your tax bill if you have qualified for this credit.

Your total Homeowner’s Credit is $0.00.  Your property taxes should go DOWN this year by this amount if you submit a Homeowner’s Tax Credit application by the deadline of September 1, 2016.

The total Homeowner’s Credit is also not shown on your tax bill but can be calculated by adding the State Homeowner’s Credit plus the County Homeowner’s Credit.

No matter what results you get from this calculator, we urge all resident homeowners with income of $60,000 or less (or $91,000 or less if you live in Rockville) to apply for the Homeowner’s Tax Credit.  If the SDAT determines that you are not eligible for the credit, they will send you a letter that explains why the credit was not granted.

If you purchased or sold your home during 2016, your Homeowner’s Tax Credit will be prorated on a daily basis by the SDAT.  This calculator does not perform the proration calculation.

To obtain the Homeowner’s Tax Credit, you must apply by September 1, 2016.  We suggest submitting the Homeowner’s Tax Credit application (HTC-60) by certified mail — return receipt requested — so that you have proof that the application was submitted on time.

By submitting the HTC-60 form, you will also automatically receive the Montgomery County Homeowner’s Tax credit and any municipal Homeowner’s Credits (if you qualify based on your income and the assessed value of your property).

Homeowners who have already received the Homeowner’s Tax Credit on their current tax bills can use this calculator to verify the accuracy of the Homeowner’s Tax Credit credit on their tax bills.  The Department of Assessments and Taxation (SDAT) calculates the Homeowner’s Tax Credit using a manual process, so mistakes can occur.  If the amount of Homeowner’s Tax Credit shown on your tax bill differs from the amount generated by this calculator, please let us know.  We want to ensure that this calculator is accurate and we want to help you ensure that the SDAT calculates your Homeowner’s Tax Credit correctly.

Important Note to Homeowners in the City of Rockville:  The City of Rockville issues a supplementary Homeowner’s Tax Credit to resident homeowners with income of $91,000 or less.  The Rockville program is administered by the state of Maryland.  Therefore, if you live in the City of Rockville and your income is $91,000 per year or less, you should submit a Homeowner’s Tax Credit application to the state.  Rockville homeowners whose income is from $60,001 to $91,000 will not receive state or county Homeowner’s Tax Credits but will receive the Homeowner’s Tax Credit from the City of Rockville.  (This calculator does not calculate the City of Rockville supplementary Homeowner’s Property Tax Credit.)

If you are age 70 or older, you may apply retroactively for up to three years of Homeowner’s Tax Credits if you were at least 70 years old as of the taxable year for which a credit is sought.

The Homeowner’s Tax Credit is available only to a property that is the “principal residence” of a homeowner.  Rental (investment) properties that are not owner-occupied are not eligible to receive the Homeowner’s Tax Credit.  However, properties that are the principal residence of their owners but have limited rental use, such as a working adult child living at home, may be eligible to receive the Homeowner’s Tax Credit.  Generally, the owner(s) must reside in the property for at least half of the year for it to qualify as their principal residence.  If you own only one home and use the address of that home to submit your income tax returns, it almost certainly qualifies as your “principal residence.”  See the SDAT website for further information about principal residence determination.

Certain asset limits can disqualify a homeowner from receiving the Homeowner’s Tax Credit, but the amounts are high enough that most moderate- and low-income homeowners will not be disqualfied based on assets.  This calculator does not take asset limits into account.  See the Homeowner’s Tax Credit application (HTC-60) for more information about asset limits.

Click Here to Obtain a Homeowner’s Tax Credit Application.

If you qualify for the Homeowner’s Tax Credit, Montgomery County will issue a new tax bill, which you will receive about 60 to 90 days after submitting the application.  You should pay your current tax bill (or semi-annual portion of your tax bill) before it is due if you do not receive an adjusted bill by the time that your current bill is due.  Montgomery County will refund any overpayment (eventually).  If you do not receive a refund of an overpayment by January 15, 2017, check with the Montgomery County tax office as an overpayment is sometimes not issued until requested by the homeowner.  You can view your tax bill online to see if it has a credit balance.

The Homeowner’s Tax Credit calculator was developed by Louis Wilen for the Montgomery County Civic Federation, Inc.  The MCCF does not guarantee the accuracy of the results, nor does the MCCF accept any liability for anyone’s usage of this form.

We gratefully acknowledge the assistance provided by the Maryland State Department of Assessments and Taxation, which provided test cases to validate this calculator.

This application and its developers are not affiliated with the State of Maryland or Montgomery County.

This application has not been subjected to any formal tests.  It is “beta” code that is under development and will be further refined but is believed to function correctly when correct values are entered into the input fields.  Please notify the Montgomery County Civic Federation about any problems.