Wherever you buy a home in the United States, property taxes are a reality of homeownership. Below are the basics about property taxes and information on our local tax rates.
Property taxes are charges on your land and property, based on the value of your property, levied by your local government. The revenue generated is often used to fund community needs such as schools, police and fire departments, and road maintenance. Some states also tax personal property, such as cars and boats.
Real estate listings, usually from your local multiple listing service, typically include information on a property’s annual taxes. You can also pull tax records through county websites, which will also show you when the property was last reassessed. Depending on the location, the assessed value — which is different from and generally less than the market value — of the property may increase based on the amount you pay for it.
Tax rates vary widely depending on where you live. The current county tax rate is $0.845 per $100 of assessed value. Worcester County collects the real property tax for the State of Maryland on properties located in Worcester County. The current State of Maryland tax rate is $0.112 per $100 of assessed value.
Annual bills are mailed each July, with a six-month new construction billing each January. A discount of 0.5% of the county tax is allowed for payments made in the month of July. The tax bill becomes delinquent on October 1 and is subject to interest at the rate of 1% per month until paid.
If your property is your principal residence, state legislation allows the payment of property tax bills on a semi-annual basis. State legislation also allows semi-annual payments for businesses with taxes not exceeding $100,000. The first installment becomes delinquent on October 1. The second semi-annual payment is due December 1. Interest begins January 1.
Worcester County collects the real property tax for the towns of Berlin, Snow Hill, Pocomoke, and Ocean City. The current Berlin town tax rate is $0.8275 per $100 of assessed value. The current Snow Hill town tax rate is $0.9375 per $100 of assessed value. The Pocomoke town tax rate is $0.9375 per $100 of assessed value for owner occupied property and $1.1311 per $100 of assessed value for all other properties. The tax rate for Ocean City is $0.4426 per $100 of assessed value.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
