Building Homes Act

Local property tax break for affordable homes

Beginning June 1, 2026, Maryland cities and counties can pass a law to give a property tax credit for some affordable homes. The home must have a mortgage or deed of trust from a nonprofit. It must also have a covenant or agreement of at least 20 years that limits income and appreciation and keeps the price affordable, including on resale. The credit equals the local tax on the gap between the home’s full assessed value and the part tied to your first mortgage. Local officials set how long the credit lasts, any extra rules, and the application steps. The credit applies to tax years that begin after June 30, 2026.