Understanding property tax implications is crucial when selling your Maryland home. Proper planning can help you minimize your tax burden and avoid surprises at closing.
Maryland Property Tax Basics
Maryland property taxes are assessed at the county level, with rates varying significantly across the state. Understanding your local tax structure is essential.
Tax Year and Assessment
- Tax year runs from July 1 to June 30
- Assessments are typically done every three years
- Tax bills are usually sent in late June or early July
Prorated Taxes at Closing
When you sell your home, property taxes are prorated between buyer and seller based on the closing date. This ensures each party pays only for the time they owned the property.
Capital Gains Considerations
If your home has appreciated significantly, you may owe capital gains tax. However, Maryland offers several exemptions:
- Primary residence exemption (up to $250,000 single, $500,000 married)
- Must have lived in the home 2 of the last 5 years
- Can only be used once every two years
Working with Professionals
Consider consulting with a tax professional or real estate attorney to ensure you're taking advantage of all available exemptions and properly handling your tax obligations.
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About Sarah Chen
Real estate market analyst and writer specializing in Maryland property trends. Sarah provides data-driven insights to help homeowners make informed decisions about buying and selling. With a background in economics and real estate finance, she brings analytical rigor to complex market dynamics.
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