Written by Marc Cormier, Seniors Real Estate Specialist (SRES), Berkshire Hathaway HomeServices PenFed Realty. Top 1% of Realtors nationwide, serving Maryland, Virginia, and Washington DC.

August 19, 2026 · Marc Cormier, SRES

If you were born in the 1940s, 1950s, or 1960s and own a home in Maryland, you may have seen the headlines: "Property tax rules just changed for older homeowners."

Some social media posts go even further and claim Congress created a new property tax exemption or freeze for older Americans.

Here's the important part:

There is no new federal property tax exemption simply because you were born in the 1940s, 1950s, or 1960s.

But that doesn't mean there is nothing to pay attention to.

Maryland and several local counties offer real property tax credits that many homeowners may overlook. Some programs have changed for 2026, and others have deadlines you need to know.

For homeowners thinking about retirement or downsizing, these credits can also change the math behind a much bigger question:

Should I stay in my current home, or is it time to downsize?

Let's separate fact from fiction.

Did Congress Change Property Taxes for Older Homeowners in 2026?

Not in the way many viral posts suggest.

Your Maryland property tax bill is largely controlled by the state and your local jurisdiction, not by a new federal senior property tax program.

Congress has, however, changed federal tax law affecting state and local taxes.

For 2026, the federal deduction limit for state and local income, sales and property taxes, known as the SALT deduction, is $40,400 for most filers and $20,200 for married taxpayers filing separately. Income-based limitations can apply.

That's a federal income-tax issue. It is not a new Maryland property-tax exemption for seniors.

So where are the real opportunities? Right here in Maryland.

1. Maryland Homeowners' Property Tax Credit

Maryland's Homeowners' Property Tax Credit, sometimes described as a circuit-breaker program, can provide a property-tax credit when a qualifying homeowner's property taxes are high compared with household income.

And here's something many people miss: You don't have to be 65 to apply.

That makes this particularly important for homeowners in their late 50s and early 60s who are retiring or experiencing a drop in household income.

The credit is not automatically granted. You must apply.

For 2026, the application deadline is: October 1, 2026.

Maryland recommends applying earlier when possible so an approved credit can be reflected on the initial tax bill.

Why this matters when you're retiring

Suppose you bought your house years ago. Your mortgage may be small, or completely paid off. But your property taxes, insurance, utilities, repairs, lawn care and maintenance continue. Then retirement reduces your household income.

Before deciding that your house has become unaffordable, find out whether you qualify for property-tax assistance. A tax credit could change your numbers.

2. Montgomery County Homeowners May Have Additional Help

If you live in Montgomery County, don't stop after checking the Maryland program. The County has additional programs.

Montgomery County Supplemental Homeowners Property Tax Credit

Montgomery County supplements the Maryland program for qualifying homeowners.

For the July 1, 2026 billing, Montgomery County increased several limits used to calculate its supplemental credit:

• Combined income eligibility up to $76,620
• Net-worth criteria up to $255,400
• Assessed value used in calculating the credit up to $383,100

These amounts are indexed and can change in future years.

Better yet, homeowners don't need to complete a second application for this supplement. The State Homeowners' Property Tax Credit application is used to determine eligibility.

3. Montgomery County Senior Property Tax Credit

If you are 65 or older, there is another program worth checking.

Montgomery County offers its Senior Property Tax Credit to qualifying homeowners who are at least 65, use the property as their principal residence, and qualify for either the Maryland Homeowners' Property Tax Credit or Montgomery County Supplement.

The Senior Tax Credit can equal 50% of the combined State Homeowners' Tax Credit and County Supplement.

There generally isn't another separate application for this particular senior credit. But there is a catch: You have to apply for the Homeowners' Property Tax Credit to be considered.

That makes the application more important than many homeowners realize.

4. Have You Lived in Your Montgomery County Home for 40 Years?

This may be one of the most interesting programs for longtime Montgomery County homeowners.

If you're at least 65 and have owned and lived in your home for 40 consecutive years, you may qualify for another County property-tax credit.

The program provides a 20% credit against County property taxes for seven consecutive years for qualifying owner-occupied homes.

For the 40-year homeowner category, the property's assessment cannot exceed $700,000 at the time of application.

Think about who this applies to. You bought a home in Bethesda, Rockville, Potomac, Silver Spring, Gaithersburg or another Montgomery County community decades ago. You raised your family there. The kids moved out. And now you're sitting in a house that may be worth far more than you ever imagined.

Before deciding whether property taxes are forcing you to move, check whether this credit applies.

Important deadline

The application for this particular Montgomery County program is generally due April 1 for the applicable tax year.

If you've missed a deadline, contact the County rather than assuming nothing can be done.

5. Retired Military Homeowners in Montgomery County

The same Montgomery County program also covers certain retired members of the military and uniformed services who are 65 or older.

This distinction matters: Being a veteran alone isn't enough for this particular credit. The County requires qualifying retired status.

For Levy Year 2026, the assessment limit for the retired-military category is $550,000.

Qualifying homeowners can receive a 20% credit against County property taxes for seven consecutive years.

6. Prince George's County Homeowners 65+

Prince George's County has an Elderly Property Tax Credit program designed for qualifying longtime homeowners.

For Fiscal Year 2027, the tax billing period running from July 1, 2026 through June 30, 2027, the County's published eligibility information says the homeowner must meet requirements including:

• At least one homeowner being 65 or older
• That homeowner having lived in the property for at least the previous 10 fiscal years
• Property assessed value not exceeding $515,000
• Application received by October 1, 2026

The program can provide up to a 20% credit of the County portion of the property-tax bill, subject to the program's rules, for up to five years.

Important warning

Prince George's County's own website also says the Elderly Property Tax Credit portal was closed because the program was suspended effective June 30, 2025 while County officials addressed implementation issues.

At the same time, that County page currently publishes eligibility requirements for FY2027 and provides information about a paper application.

That means you should verify the current application status directly with Prince George's County before relying on the credit.

This is a perfect example of why homeowners shouldn't make financial decisions based on a social media video, or even an old article. Programs change.

7. Howard County Has Senior and Aging-in-Place Programs Too

Howard County homeowners should also investigate their local programs. Whether you're in Columbia, Ellicott City, or another Howard County community, the savings could be significant.

Howard County maintains a tax-credit eligibility system that identifies several potential programs, including:

• Aging in Place Tax Credit
• Homestead Tax Credit
• Maryland Homeowners Property Tax Credit
• Senior Tax Credit

Howard County Aging in Place Tax Credit

Howard County has offered an especially interesting program for longtime homeowners.

Published County program materials describe an Aging in Place Tax Credit for qualifying homeowners age 65 or older who have owned and lived in the same dwelling for at least 30 years.

The published program provides a credit equal to 20% of eligible County tax, subject to the program's assessment and other requirements, and can automatically renew for seven consecutive years while eligibility continues.

Howard County also has a separate Senior Tax Credit with its own qualifications.

Importantly, County materials state that a homeowner cannot receive both the Senior Tax Credit and Aging in Place Credit at the same time.

Because local limits and application rules can change, Howard County homeowners should check the current application before making financial assumptions.

8. Don't Confuse the Maryland Homestead Tax Credit With the Homeowners' Property Tax Credit

The names sound almost identical. They are not the same program.

Homeowners' Property Tax Credit

This program looks at factors including household income and property taxes. You generally apply each year.

Homestead Tax Credit

This program limits how quickly the taxable assessment on an eligible owner-occupied principal residence can increase. Think of it as protection against a sudden increase in taxable assessment, not a senior discount.

That means a homeowner can potentially benefit from the Homestead Tax Credit while also investigating other property-tax credits for which they qualify.

If you're unsure whether your Homestead application has been approved, check your property record with the Maryland State Department of Assessments and Taxation.

9. Born in the 1940s? Check These Things Now

If you were born in the 1940s, you're roughly in your late 70s or 80s in 2026.

Your house may also represent one of your largest assets.

Check:

1. Is your Maryland Homestead Tax Credit application approved?
2. Have you applied for the Maryland Homeowners' Property Tax Credit?
3. Are you receiving every available county supplement?
4. Do you qualify for a local senior credit?
5. Have you owned your home long enough to qualify for a Montgomery or Howard County longtime-homeowner program?
6. Are there veteran or surviving-spouse exemptions that apply to you?
7. Does your current house still make financial and practical sense?

Don't look only at the tax bill. Look at the entire house.

To understand how capital gains tax affects your downsizing decision, review the tax rules that apply to longtime Maryland homeowners before you sell.

10. Born in the 1950s? Age 65 Can Open New Doors

If you were born in the 1950s, you are approximately 66 to 76 in 2026.

This is an important group because many local programs begin at 65.

Turning 65 doesn't necessarily mean the County automatically starts sending you every benefit available.

For example, Montgomery County's Senior Property Tax Credit depends upon applying for the underlying Homeowners' Property Tax Credit.

If you crossed 65 without reviewing your property-tax situation, now is a good time.

11. Born in the 1960s? Don't Wait Until 65 to Start Planning

If you were born in the 1960s, you are roughly 57 to 66 in 2026.

You may think senior property-tax programs don't matter yet. That's not necessarily true.

Maryland's Homeowners' Property Tax Credit is not limited to seniors.

More importantly, this is when many homeowners start making major retirement decisions.

Do we stay? Do we renovate? Do we move closer to the children? Do we buy something smaller? Do we sell the house and free up the equity?

Those decisions should not begin at age 70. They should begin with a plan.

12. A Tax Credit Doesn't Automatically Mean You Should Stay

This is where property-tax advice and downsizing advice meet.

Suppose a tax program saves you $1,500 a year. Great. Take it if you qualify.

But what if you're also spending:

• $4,000 on landscaping
• $3,000 on utilities
• $2,500 on routine maintenance
• Thousands more on insurance
• And another $10,000 every few years when a roof, HVAC system, driveway, windows or plumbing needs work

Saving $1,500 on property taxes doesn't automatically make a large house inexpensive.

The question isn't simply, "Can I lower my property taxes?"

The better question is: "What does this house actually cost me to keep?"

13. Before Downsizing, Calculate Your Real Cost of Staying

Start with these numbers:

• Property taxes after available credits
• Homeowners insurance
• Utilities
• Lawn and landscaping
• Cleaning
• Repairs
• Expected major replacements
• Mortgage payment, if any
• HOA or condo fees
• Accessibility improvements you may eventually need

Then compare that with the cost of your realistic downsizing options.

A homeowner in Silver Spring spending $4,500 per year on property taxes, $3,000 on maintenance, and $2,500 on utilities is paying $10,000+ annually to keep a house that may no longer fit their life.

You may discover that staying makes perfect sense. Or you may discover that you're spending $15,000, $20,000 or more every year maintaining space you rarely use.

That's when downsizing stops being about moving into a smaller house. It becomes a financial decision.

14. Don't Make a $700,000 Decision Over a $2,000 Tax Problem

This is one of the biggest mistakes I see homeowners make.

Someone gets a property-tax bill. They get angry. They decide: "That's it. I'm selling."

Not so fast.

If your home is worth $700,000, $900,000 or $1 million, selling it is a major financial decision.

First find out whether you're receiving every property-tax credit available. Then calculate the true cost of staying. Then determine what the house is actually worth. Then look at where you would go.

Run the numbers before you run to the moving truck.

The reverse is also true. Don't remain in a house that no longer fits your life simply because you received a tax credit.

Frequently Asked Questions

Thinking About Downsizing in Montgomery, Prince George's or Howard County?

Before you decide to stay, sell or downsize, get the numbers.

A good downsizing plan should answer three questions:

1. What is my house really worth today?
2. What is it really costing me to stay here?
3. What would my financial picture look like if I sold and downsized?

That's where I can help.

I've spent decades helping Maryland homeowners prepare, improve, market and sell homes. Downsizing isn't simply putting a sign in the yard. There may be decades of belongings to sort through, repairs to consider, contractors to coordinate and a new home to find.

We can build the plan before you commit to selling.

This article is for educational real estate information only. It is not legal, tax or financial advice. Property-tax programs, eligibility limits and deadlines can change. Verify current eligibility with the Maryland State Department of Assessments and Taxation and the appropriate county agency, and consult your tax or legal professional about your individual situation.

Tax information reviewed against official Maryland and county sources. Last reviewed: August 19, 2026.