Each year, the MD State Department of Assessments and Taxation re-values a third of the roughly 2 million properties in the state, a figure that is then used to calculate County and City property taxes. The report just released puts the average residential property valuation increase at 21.1%.

For residential properties in the Central Maryland area (which Laurel is in), the increase averaged 22.6%. And certain properties experienced north of a 30% increase. (Last year’s re-valuations averaged ~25%.)

Factors at play likely include housing supply shortages (also impacting housing affordability) as well as wider economic forces (like interest rates, employment levels, construction environment, etc.)

For owners that use the property as their primary residence, they can qualify for the Homestead Tax Credit which limits any one year’s increase to no more than 10% (but will experience the full effect within 2-3 year window).

In other related news, a recent WSJ study showed that 32% of the average single-family mortgage payment went to property taxes and home insurance - a combo effect, also reflecting shake ups happening within the insurance industry.