Tax Credits & Incentives

Senior Tax Credit Supplement

The City of Frederick Senior Tax Credit Supplement was enacted by the Board of Aldermen in July 2018. The State of Maryland administers the credit as part of the State Homeowners’ Property Tax Credit Program.

Eligibility Requirements

To be eligible for a local supplement, a homeowner must:

  1. be qualified for the state tax credit (see State requirements below);
  2. be at least 70 years old as of the end of the calendar year preceding the taxable year for which the credit is sought; and
  3. have a combined gross income of $40,000 or less.

The State requirements are:

  • You must own or have a legal interest in the property.
  • The dwelling on which you are seeking the tax credit must be your principal residence where you live at least six months of the year, including July 1, unless you are a recent home purchaser or unless you are unable to do so because of your health or need of special care.
  • Your net worth, not including the value of the property on which you are seeking the credit or any qualified retirement savings or Individual Retirement Accounts, must be less than $200,000.
  • Your combined gross household income cannot exceed $60,000.

Process for Receiving Your Tax Credit

When a City taxpayer files for the State credit, the State will then determine if the taxpayer is eligible for the City supplement tax credit. If it is determined that the taxpayer is eligible for the City supplemental credit, the State will then process the City supplemental tax credit along with the State credit.