Real property taxes are comprehensive, meaning you pay taxes on both the land and any permanent structures built on it. The average property tax paid by homeowners in a given area, however, is more complex than the standalone tax amount. The median home sale price, for example, can significantly increase or decrease the amount paid at the end of the day. There are some jurisdictions where annual property tax payments are high because low property tax rates are offset by high median home sale prices.
The Highest Taxes and Payments
Baltimore City has the highest real property tax rate than any other jurisdiction in the state at 2.24 percent. According to the Baltimore Business Journal, real estate professionals in the area are worried that the incredibly high property taxes are dissuading people from buying homes there. Some also believe that a reduction in the rate could significantly attract new homebuyers. The median home sale price in Baltimore City is $102,750, thus the average property tax payment is $2,301.60.
The county with the highest average property tax payments is Howard County at $3,817.80. Interestingly, the real property tax rate is only 1.01 percent. This is because the median home sale price is a whopping $378,000, the second highest compared to other counties.
The Lowest Taxes and Payments
Montgomery County currently has the lowest property tax rate in the state at 0.77 percent, but has the highest median home sale price at $420,000. Residents of Montgomery County make average property tax payments of $3,234.
Somerset County has the lowest average property tax payment in the state. Residents of the county have average property tax payments of $850 with real property taxes at a rate of 1 percent. The median home sale price in the county is $85,000.
Lakeside Title Company
Lakeside Title Company is proud to provide services to Maryland’s diverse real estate community. We offer title insurance and numerous title services to streamline residential and commercial transactions for lenders, realtors, buyers and sellers. To learn more about our comprehensive title-related services, visit our homepage or give us a call at 410-992-1070. We look forward to the chance to serve you!