MARYLAND - Marylanders are starting the new year with sharp increases in property values, leading many to prepare for higher property taxes. The state has begun sending out property value reassessments, with Somerset County experiencing the largest increase statewide.
Property values in Somerset County have risen by more than 37% over the past three years, far surpassing the state average of 20%. Neighboring counties on Maryland’s Eastern Shore also saw substantial increases. Wicomico and Worcester counties reported about a 30% jump in property values, while Caroline and Dorchester counties saw roughly a 23% increase. Talbot and Queen Anne’s counties followed closely with around a 22% rise.
Real estate agent Laurie Cannon, based in Salisbury, explained the factors driving the surge in property values.
"Because we are impacted by market value, it's saying that if you do own a home, it is still a good investment for you. And wanting to own a home—the American dream—is still a good dream to have," Cannon said.
Maryland conducts property tax assessments every three years to determine homeowners' tax obligations. While rising property values can be beneficial for sellers, Cannon noted they pose challenges for buyers.
"It does impact their monthly payment. If they're trying to stay within a budget, the assessments and also the insurance rates going up—because they've gone up substantially as well—can really impact the price of the home they can afford," she added.
Maryland reassesses property taxes in phases, dividing counties into three groups. This means other parts of the state will undergo reassessments next year and the year after.
Homeowners facing dramatic increases in property values can apply for the state’s Homestead Tax Credit, which helps limit the financial impact of rising assessments.
