Baltimore Launches Initiatives to Provide Property Tax Relief

City aims to lower effective tax rate and reform tax sale process to protect homeowner equity

Published on Feb. 9, 2026

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The city of Baltimore has unveiled two new initiatives to improve property taxes for residents. The first aims to lower the effective tax rate for homeowners, while the second will change the city's tax sale process by raising the minimum bid to assessed value and establishing payment plans for some residents. These measures are intended to improve the city's property tax competitiveness and provide relief for vulnerable residents.

Why it matters

Baltimore's high property tax rate has long been a challenge for homeowners, making the city less affordable. These new initiatives are part of the mayor's broader efforts to address housing affordability in the city. The changes to the tax sale process are also significant, as they are intended to protect homeowner equity and prevent vulnerable residents from losing their homes.

The details

The city's three-part relief strategy includes increasing the Homestead Tax Credit cap from 4% to 6%, boosting funding for the Targeted Homeowners Tax Credit, and raising the minimum bid for tax sales to the assessed value of the property. This should lower the effective tax rate for most residential homeowners to below $2.00 per $100 of assessed value. The city will also establish payment plans for some residents to prevent them from losing equity in their homes through the tax sale process.

  • The Homestead Tax Credit cap change and Targeted Homeowners Tax Credit increase will be presented with the city's 2027 budget proposal.
  • Legislation to implement the tax sale reforms, including the minimum bid increase and payment plans, will be introduced in the city council.

The players

Brandon Scott

The mayor of Baltimore who announced the new property tax relief initiatives.

Maryland Legal Aid

The organization that reached an agreement with the city to stay a lawsuit challenging the current tax sale process.

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What they’re saying

“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.”

— Brandon Scott, Mayor of Baltimore (cbsnews.com)

“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.”

— Brandon Scott, Mayor of Baltimore (cbsnews.com)

What’s next

Legislation to implement the tax sale reforms, including the minimum bid increase and payment plans, will be introduced in the city council.

The takeaway

These new property tax relief initiatives from Baltimore's mayor aim to make the city more affordable for homeowners by lowering the effective tax rate and protecting vulnerable residents from losing equity in their homes through the tax sale process. The changes demonstrate the city's commitment to addressing housing affordability challenges.