City Will Also Significantly Change Tax Sale Process By Raising Minimum Bid and Establishing Payment Plans Under Agreement with Maryland Legal Aid
BALTIMORE, MD (Monday, February 9, 2026) - Today, Mayor Brandon M. Scott announced two major initiatives aimed at improving the property tax experience for Baltimore residents. First, Mayor Scott is pursuing an ambitious property tax relief strategy aimed at lowering the effective tax rate for residential homeowners. Second, following an agreement reached with Maryland Legal Aid to stay ongoing legal challenges, the City will make changes to the City's tax sale process, including raising the minimum bid to assessed value and establishing payment plans for residents. These initiatives continue Baltimore's effort to responsibly improve the city's property tax competitiveness and further ease the burden for our most vulnerable residents.
"Our city's Renaissance is here, which means more people than ever want to buy a home and put down roots in Baltimore," said Mayor Brandon M. Scott. "We know that our property tax rate can be a challenge for homeowners, which is why - in addition to our broader housing affordability investments - we're announcing this strategy to bring the effective property tax rate for residential homeowners below $2.00 this year. Today's announcement is yet another way we're working to make sure our residents can continue being the first beneficiaries of our city's growth.
"In addition, we have reached an agreement with Maryland Legal Aid to tackle longstanding challenges in our tax sale process by elevating the minimum bid to assessed value of the property and establishing - for the first time in the city's history - payment plans for residents in danger of facing tax sale. Residents will now have an option to begin tackling their large, overdue tax bills in installations instead of all at once, making it easier to ensure legacy homeowners can hold on to their homes even in difficult times."
Property Tax Relief Strategy
Mayor Scott is proposing a three-part property tax relief strategy that will lower property taxes for residents and make Baltimore more affordable. This strategy will responsibly deliver property tax relief to Baltimore homeowners without impacting the delivery of core city services by modernizing outdated tax credits to better serve our residential homeowners, by lowering the overall tax burden on the vast majority of individuals who receive these tax credits.
The three parts of Mayor Scott's strategy are:
- Adjusting the Homestead Tax Credit: Legislation to make this adjustment will be introduced at the February 9, 2026, City Council meeting in order to implement the change for the FY 2027 tax season.
- Expanding the Targeted Homeowners Tax Credit: This effort will be presented to the Board of Estimates for approval with the FY 2027 budget to drastically increase the Targeted Homeowners Tax Credit and execute one of the most significant property tax reductions for residential homeowners in decades.
- Boosting enrollment in the State Homeowners' Property Tax Credit and Renter's Tax Credit: The city will engage in an ongoing campaign to ensure that homeowners across Baltimore are taking full advantage of the tools they qualify for to ease their property tax burden.
"For too long, Baltimore's property tax rate has made it harder to attract new residents and has placed a burden on the families who already call our city home, especially our older adults," said City Council Vice President Sharon Green Middleton. "I am proud to partner with Mayor Scott on a responsible strategy to bring our residential property tax rate below $2.00. By modernizing the Homestead Tax Credit, expanding the Targeted Homeowners Tax Credit, and boosting enrollment in the State's Homeowners' and Renter's Tax Credit programs, we will deliver meaningful relief without raising taxes or compromising the essential services residents rely on."
"For many Baltimore homeowners, rising housing costs have created real financial pressure, particularly for those on fixed incomes, families working hard to remain in the neighborhoods they love, and residents who are the backbone of our middle neighborhoods," said Budget and Appropriations Committee Chair Councilwoman Danielle McCray. "This bill reflects a fiscally responsible approach to preserving community stability and ensuring our middle neighborhoods continue to thrive. I look forward to working with the Administration and my colleagues to advance legislative efforts that protect longtime homeowners while supporting Baltimore's continued growth."
The first part of Mayor Scott's strategy is adjusting the Homestead Tax Credit cap from 4% to 6%. State law allows local jurisdictions to set the Homestead cap anywhere between 0% and 10%. The current cap, which has been in place since the 1990s, is significantly lower than most Maryland jurisdictions. When paired with the other proposed adjustments, this change will ultimately generate enough revenue to lower property taxes for the vast majority of Baltimore's residential homeowners and ensure that the majority of impacted residents ultimately see their overall tax burden decrease below anticipated levels or remain net neutral. Council Vice President Middleton will introduce a bill that will adjust the Homestead Tax Credit.
The second part of the strategy is increasing funding for the Targeted Homeowners Tax Credit, lowering the effective homeowner tax rate from $2.048 to $1.99 per $100 of assessed value. This change will offset the amount owed by property owners impacted by the adjusted Homestead Tax Credit so that tens of thousands of residents will see a lower than expected tax receipt in FY 2027. The expansion will be introduced before the Board of Estimates alongside Mayor Scott's FY 2027 Budget.
The third part of the strategy is enrolling more residents in the State Homeowners' Property Tax Credit and Renters' Tax Credit. Analysis of U.S. Census and property assessment data indicates that thousands of eligible Baltimore residents are not currently enrolled. To close this gap, the City will partner with nonprofit organizations to identify and assist eligible households with enrollment.
Each component of this strategy works in coordination to facilitate the overall outcome of a lower property tax burden for the vast majority of residential homeowners, with the positive impact expected to be felt almost immediately on residents' FY 2027 tax bill.
Tax Sale Changes
Additionally, Mayor Scott, alongside leaders of Maryland Legal Aid, announced that the City will make significant changes to its tax sale process as a result of an agreement reached between the City and Maryland Legal Aid to stay ongoing litigation brought by MLA challenging the City's tax sale system. These changes include raising the minimum bid for tax sale to the assessed value of the property, which will help ensure homeowners are not deprived of equity when their property is transferred through the tax sale process. It also will establish payment plans for residents at risk of facing tax sale for the first time in the City's history. Throughout his tenure, Mayor Scott has taken expansive action to protect owner-occupied homes from the impact of tax sale, and this latest agreement with Maryland Legal Aid builds on that commitment to homeowners across Baltimore who may face financial challenges.
"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, a statewide nonprofit law firm that brought the suit against the City's tax sale process in federal court. "With this agreement, Baltimore takes meaningful steps toward building a tax sale system that is fairer, more accountable, and grounded in the real value of people's homes."
Establishing payment plans requires additional action by the City Council. The administration is partnering with Councilwoman Odette Ramos (District 14) to craft, introduce, and pass the enabling legislation.
"Too many Baltimore residents face tax sale, not because they don't want to pay their property taxes, but because they don't have flexible, realistic options," said Councilwoman Odette Ramos. "This program will be about meeting residents where they are. By working in partnership with Mayor Scott, we are creating a clear, accessible path for homeowners to get back on track, avoid tax sale, and stay in their homes. Payment plans are the cornerstone of our work to reform the tax sale system, and this effort reflects our shared commitment to financial stability and building inter-generational wealth."
Beginning today, residents can express interest in real property payment plans for past-due property taxes.The planned program will give homeowners an easy way to catch up on past-due real property taxes through flexible payment plans. This is the first time the City plans to offer payment plans for past-due real property taxes, eliminating a major barrier for homeowners who previously had to pay their full balance by December 31 or risk tax sale.
To receive an alert once enabling legislation is passed and the payment plans become available, go to: www.baltimorecity.gov/propertypaymentplans.
The City of Baltimore is partnering with Promise, the same secure payment plan provider that has already helped more than 12,350 Baltimore residents manage their water bills since 2023. Promise's technology is now being extended to real property taxes, giving homeowners a simple, mobile-friendly way to enroll in a payment plan.
The City will also share information through its website, customer service teams, social media channels, and community partners.
