State Summary
- Tax Collection Method: Liens
- Primary Bidding Type: Premium
- Redemption Period: 6 months (or 60 days for improved properties not meeting building and safety code)
- Redemption Interest Rate/Flat Penalty: By Maryland statute, a minimum of 6% simple interest per annum, but the redemption simple interest rate in some counties is as high as 20%. The maximum redemption simple interest rate allowed is 24%.
The following information summarizes the life cycle, requirements, and administering of tax liens in the state of Maryland. Please read this information carefully. There are tax collection laws that pertain to all counties in Maryland, but be aware that there are subtle differences between the counties as well. When the word "typical" is used in the FAQs below, it indicates that most counties use this procedure/follow this convention, but not all counties.
Is Maryland a tax lien or a tax deed state?
Maryland is a tax lien state.
What is the name of the county official whom typically collects property taxes in Maryland?
Treasurer or Treasurer's Office is commonly used in Maryland for the collector of taxes. Some counties use Office of Finance, Tax Collections Office, and various other names.
When are property taxes due in the state of Maryland?
The annual property tax payment for all counties in Maryland is due July 1. For eligible homeowners, a semi-annual payment schedule is available. Under this schedule, taxpayers pay one half of the tax bill on July 1 and the other half on December 31.
When do property taxes become delinquent in the state of Maryland?
The annual property tax payment for the typical county in Maryland becomes delinquent beginning September 30. This date is applicable for the single installment plan and for the first installment of the two installment plan. If the two installment plan is used, the second installment becomes delinquent January 31 of the following year. Delinquent tax amounts typically accrue interest at a rate of 1% per month.
What is the name of the county official whom typically conducts tax sales in Maryland?
Generally, the Treasurer conducts tax sales.
When does the typical Maryland county hold their annual tax sale?
The annual tax sale for most counties is held in May or June.
What are the registration requirements for the typical Maryland tax sale?
Most Maryland counties require completion of a W-9 form and a $1,000 deposit in the form of certified funds. This deposit goes toward any tax certificate purchases and is refundable if the bidder does not spend over $1,000 during the tax sale. Some counties require pre-registration by mail and other counties hold registration the day of the sale.
What is the bidding type used at a typical Maryland tax sale?
Premium bidding by public outcry. A few of the larger counties hold online premium bidding auctions.
What forms of payment are generally accepted at a typical Maryland tax sale?
Typically, cash or certified funds. A few counties accept personal checks.
What are the general terms of payment for the typical tax certificate purchased at a Maryland tax sale?
Full payment of the total due for taxes and costs is required the day of the sale. The premium, or overbid amount, is only required from the purchaser if the property owner does not redeem during the redemption period and the purchaser forecloses the property owner's right to redemption and obtains the deed to the property.
What is the maximum return (interest rate and/or flat penalty rates) investors earn while they hold the tax certificate?
The return will vary based on the county and the time of redemption. Each county in Maryland sets their own redemption interest rate, and this ranges from 6% (minimum) up to 20%. The maximum allowable interest rate for a Maryland county is 24%. The tax certificate purchaser can file for foreclosure any time between six months and two years after the tax sale date. So, if a property owner redeems almost two years after the tax sale, and the redemption interest is 24% per annum, the return would be 48%.
Is the interest rate applied only to the minimum bid amount for each property, or is this interest rate also assessed on the premium or "overbid" paid for the property during the auction?
The interest rate only applies to the minimum bid amount, or the amount owed for taxes and fees, since the tax sale purchaser is not required to pay the premium unless he/she forecloses on the property.
What is the redemption period for tax certificates in Maryland?
The tax certificate purchaser may initiate the foreclosure procedure as soon as six months after the tax sale. The tax certificate will expire two years after the tax sale date, so the purchaser must foreclose on the property before this date or he/she will lose all rights to the property and the investment amount. The property will be struck off to the county.
Are tax certificates offered "over-the-counter" in Maryland?
Almost no Maryland counties offer tax certificates over-the-counter.
What is the name of the county official whom typically determines the values of properties on a annual basis?
Supervisor of Assessments.
For more information on the life cycle, requirements, and administering of tax liens in the state of Maryland, refer to the Tax - Property statutes in the Maryland Code.
Maryland County Reference
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Maryland Tax Liens
