Baltimore Mayor Announces Property Tax Relief for Resident Homeowners
For years, Baltimore has struggled with a reputation as a challenging place for homeowners, largely due to its high property tax rates. With an effective rate of approximately 2.25 percent—nearly double that of New York City—the city has consistently ranked among America's most expensive big cities for housing taxes. Critics argue this burden makes homes difficult to sell, deters investment, and unfairly penalizes long-term residents.
Mayor Scott's Initiative to Ease the Strain
Now, Mayor Brandon Scott is taking action to alleviate this pressure. "We know that our property tax rate can be a challenge for homeowners," Scott stated, announcing a plan to reduce the effective rate to $2 per $100 of assessed value. Rather than implementing a broad rate cut, the strategy focuses on enhancing and adjusting existing tax credits to lower actual payments for homeowners.
The proposal includes strengthening assessment caps to limit tax bill increases when property values rise, expanding relief for full-time residents, and increasing enrollment in state programs that reduce tax liabilities. This relief is specifically targeted at owner-occupants, not outside investors. Mike Kantzer, a Baltimore homeowner and community farmer, emphasized this point, telling the Daily Mail, "A lot of landlords don't live in the city, or even the state, and don't care about actually investing in the neighborhoods."
Reforming Controversial Tax Sales
The overhaul also addresses Baltimore's contentious tax sale system. Currently, homes delinquent on property taxes can be auctioned for the amount owed, with any surplus theoretically returned to the former owner. In practice, developers often acquire properties cheaply and resell them at significantly higher prices. City officials now propose auctioning delinquent homes closer to their assessed value, a move supporters believe will preserve wealth for struggling homeowners and reduce speculative buying.
"For too long, Baltimore homeowners have lost their homes over small tax bills and received far less than the value of those homes," said Vicki Schultz, executive director of Maryland Legal Aid. Additionally, the city is exploring new payment plans to help owners avoid losing their homes altogether.
Economic Implications and Trade-Offs
Daryl Fairweather, chief economist at Redfin, noted that the tax credit strategy could provide meaningful relief but comes with trade-offs. She explained that the flexible assessment cap might still lead to higher bills in fast-appreciating neighborhoods, while areas with stagnant or declining values are less likely to see significant increases. "The tradeoff is that it could slow down redevelopment of distressed homes that can be a blight on neighborhoods," Fairweather cautioned.
Kelly Harris, a Maryland-based Realtor and real estate investor, highlighted Baltimore's evolving housing market, stating last year, "Baltimore's housing market has grown steadily over the last three to five years, with average home prices increasing nearly 20 to 30 percent in key neighborhoods." Recent data supports this, with homicides dropping sharply in 2025 and median sale prices rising 3.8 percent year-over-year to around $218,000, according to Redfin.
Mixed Reactions and Future Outlook
Not everyone is convinced credits are the best solution. One local Reddit user commented, "Using tax credits doesn't make the city desirable to invest in, getting the real rate down does." Fairweather acknowledged that the relief may not significantly benefit investors but suggested that is intentional, aiming to prioritize residents.
Overall, the changes are expected to most benefit middle-class and upper-middle-class homeowners, while offering additional protections for lower-income residents eligible for state programs. Kantzer reflected on the city's resilience, saying, "We know our city has issues, but we love it anyway, and we want to do the work to make it better. It's good to see the city love us back."
