💰 Understanding Property Taxes in Frederick County, MD

If you own (or plan to own) a home in Frederick County, one of the most common questions I get is: “How do property taxes actually work?”

It’s a fair question — because property taxes can affect your mortgage payment, your cash flow, and even your long-term investment strategy. Here’s how they really work, and what you need to know as a Frederick homeowner or buyer.

🧾 How Property Taxes Are Calculated

Property taxes in Frederick County are based on the assessed value of your home — not necessarily what you paid for it.
The State Department of Assessments and Taxation (SDAT) evaluates properties roughly every three years, adjusting the value based on sales, location, and home characteristics.

Once that assessed value is set, it’s multiplied by the local tax rate, which is made up of:

• County Tax Rate: currently around $1.06 per $100 of assessed value
• Municipal Tax Rate: additional rates if you live within city limits (e.g., Frederick City adds about $0.73 per $100)
• State Tax Rate: a small flat rate applied statewide
  
  

So, if your home is assessed at $500,000 in the City of Frederick, your total annual property tax is roughly:
👉 $500,000 ÷ 100 × (1.06 + 0.73) = $8,950 per year

🏡 How It’s Paid

Property taxes are typically collected twice per year — July and December — though most homeowners pay through an escrow account with their mortgage lender.
Your lender estimates your annual tax bill and divides it into 12 monthly installments, rolling it into your mortgage payment automatically.

⚙️ Tax Credits and Reductions

Frederick County offers several programs that can help reduce your tax burden:

• Homestead Tax Credit: limits how much your assessed value can increase annually
• Homeowners’ Tax Credit: income-based relief for primary residences
• Veterans, Senior, and Disability Credits: specialized programs for qualified residents
  
  

If you’re not sure which credits you qualify for, I always encourage my clients to check directly with the county or apply online through the Maryland SDAT website — it’s worth thousands in savings.

💡 How Property Taxes Impact Buyers

When buying in Frederick, taxes vary significantly by neighborhood — even between communities a few miles apart.
That’s why I include tax estimates in every buyer consultation. It’s not just about affording the mortgage — it’s about affording the monthly total.

✅ Final Thought

Property taxes aren’t just another line item — they’re a key part of your home’s financial story.
Understanding them helps you budget smarter, buy confidently, and plan for long-term value.

– Cory Wilson, Your Frederick Real Estate Expert