Taxes and bills

Montgomery County, Maryland Taxes And The Budget

County taxes are part of the budget, but a resident's bill can change for several reasons. This page explains property tax rates, assessments, credits, income tax, and fees at a high level without giving personal tax advice.

Data status: FY27 Recommended tax context

Last checked: 2026-05-19. Recommended tax proposals are not final adopted tax rates. Personal tax outcomes depend on property, income, credits, charges, and official tax records.

FY27 Recommended

The Short Version

FY27 Recommended

Taxes are the largest revenue category in the official FY27 Recommended operating revenue snapshot, at $5,529,178,429 and 69.5% of the total shown on that source page.

A household's tax bill can still change for several reasons: assessment changes, the levy-year rate schedule, credits, special area taxes, and fees or charges that apply to a specific property.

Property Tax: Rate, Assessment, Credits, And Charges

The property tax rate is only one part of the bill. The assessed value, levy year, tax class, credits, municipality or special district, and property-specific charges can also matter.

Property tax rate

The real property tax rate is set each year by the County Council and applied to assessed value. The official tax rate schedule is the place to check the levy year and tax class.

Assessment

The State Department of Assessments and Taxation appraises real property and certifies assessments to the county for billing. A higher assessment can raise a bill even when a rate does not change.

Credits

Credits can reduce the taxable assessment or the bill for eligible properties. Eligibility depends on official applications and records, not on this site.

Charges and special districts

Some bills include charges or special area taxes tied to location, services, districts, or property type. Those items are separate from the general county property tax rate.

The official Tax Rates page lists real and personal property tax rate schedules by levy year. This page does not republish a single rate because the correct line can depend on the property and tax class.

County Income Tax

FY27 Recommended Revenue

Montgomery County, Maryland's income tax is local income tax administered through Maryland's income tax system. The county receives revenue from withholding, estimated payments, and later reconciliations.

In the FY27 Recommended fiscal plan, the County Executive proposes a 3.3% local personal income tax rate, up from 3.2 percent, if adopted, effective January 2027.

The FY27 Recommended fiscal plan says the County Executive proposes increasing Montgomery County's local personal income tax rate from 3.2 percent to 3.3 percent, if adopted, effective January 2027.

Fees And Charges

Fees and charges can appear in the budget or on a bill because they are tied to a service, district, permit, facility, utility-related program, or payment method.

These are not the same as broad taxes. A fee may support a specific service, while a tax may support wider county operations.

What People Often Misunderstand

A tax bill can rise even when a headline rate does not. If taxable assessment rises, a credit expires, a special district applies, or a property-specific charge changes, the amount due can change.

Another common mistake is treating the Taxes revenue category as property tax alone. The county budget's tax revenue category includes property tax, county income tax, and other taxes.

No Personal Tax Advice

This site explains how taxes fit into the county budget. It does not decide eligibility for credits, estimate a property tax bill, interpret personal tax records, or provide legal, tax, or financial advice.

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