Baltimore Launches Plan to Lower Property Taxes

City aims to make Baltimore more competitive by reducing residential property tax burden

Published on Feb. 11, 2026

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Baltimore city leaders have announced a major initiative to lower property tax bills for residents, which are currently among the highest in the state and roughly double those of surrounding counties. The plan includes adjusting the city's Homestead Property Tax Credit, expanding the Targeted Homeowners Tax Credit program, and boosting enrollment in state tax credit programs. Officials estimate these measures could save the average Baltimore homeowner hundreds of dollars over three years.

Why it matters

Skyrocketing home prices and rising property tax bills during the pandemic have put homeownership out of reach for many would-be buyers. In Maryland, average property values were up over 12% last year, making it increasingly difficult for low- to middle-income households to afford to live in the state. Lowering property taxes has become an urgent issue for local lawmakers looking to make their cities more affordable and competitive.

The details

Under Mayor Brandon Scott's plan, the property tax rate in Baltimore would be lowered to below $2 per $100 of assessed value, the lowest rate in half a century. The plan includes adjusting the city's Homestead Property Tax Credit to raise the cap from 4% to 6%, expanding the Targeted Homeowners Tax Credit program, and boosting enrollment in state tax credit programs. Officials estimate a homeowner with a $100,000 property gaining $10,000 in value could save $129 over three years, while a homeowner with a $500,000 property gaining $30,000 in value could save $678.

  • The Homestead Property Tax Credit adjustment was introduced at the February 9, 2026 City Council meeting.
  • The expansion of the Targeted Homeowners Tax Credit program will be presented to the Board of Estimates for approval with the city's 2027 proposed budget.

The players

Brandon Scott

The mayor of Baltimore who announced the property tax reduction plan.

Odette T. Ramos

A Baltimore City Councilwoman who said the mayor's strategy would "really help our homeowners."

Danielle McCray

The Chair of the Budget and Appropriations Committee on the Baltimore City Council, who said the plan reflects a "fiscally responsible approach to preserving community stability and ensuring our middle neighborhoods continue to thrive."

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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 this year.”

— Brandon Scott, Mayor of Baltimore (CBS News)

“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.”

— Danielle McCray, Chair, Budget and Appropriations Committee, Baltimore City Council (Statement shared by Mayor Scott's office)

What’s next

Scott's plan could come into effect as early as the next fiscal year, as long as it receives the city council's approval. The mayor hopes that lowering tax bills will make Baltimore more competitive against surrounding jurisdictions and attract new residents.

The takeaway

By lowering property tax rates, Baltimore is taking a significant step to address the growing affordability crisis facing homeowners in the city and make the city more competitive with surrounding areas. This strategy could serve as a model for other cities and states grappling with the impacts of rising home prices and property taxes on middle-class and working-class families.