Tax Foreclosure in Maryland: What Homeowners Need to Know
A guide from AuctionBlock.org — a mission-driven company dedicated to foreclosure prevention education
Maryland uses a tax lien system. Counties and Baltimore City sell tax lien certificates on properties with delinquent taxes, and the certificate holder can eventually foreclose.
How It Works
Property taxes in Maryland are collected by the county or Baltimore City. Under Maryland Tax-Property Article § 14-808 et seq., when taxes become delinquent, the county holds a tax lien sale. The buyer pays the delinquent taxes and receives a certificate of sale.
The certificate holder earns interest and can add certain costs (such as title search fees). If the owner does not redeem, the certificate holder can file a complaint in circuit court to foreclose the right of redemption.
Redemption Period
Under Md. Tax-Property § 14-827 et seq., the property owner has a right of redemption. The owner can redeem by paying the full amount owed — delinquent taxes, interest, penalties, and costs — to the county/city collector. The foreclosure complaint cannot be filed until at least 6 months after the tax sale (or longer in some jurisdictions). Once the foreclosure case is filed, the homeowner has a limited time (set by the court) to redeem before the court enters a final judgment.
For owner-occupied residential property, additional protections and notice requirements apply under Maryland law.
Key Programs and Exemptions
Homestead Tax Credit: Maryland's Homestead Tax Credit (Md. Tax-Property § 9-105) limits the annual increase in taxable assessment for owner-occupied properties. The state cap is 10%, but many counties and Baltimore City have set lower local caps. This is applied automatically if you have filed a Homestead Tax Credit application.
Homeowners' Property Tax Credit (Circuit Breaker): Under Md. Tax-Property § 9-104, qualifying homeowners with household income below the statutory threshold may receive a credit that effectively caps property taxes at a percentage of income. Apply through the Maryland Department of Assessments and Taxation (SDAT) by September 1.
Senior Tax Credit: Some Maryland counties offer additional property tax credits for seniors. Check with your county government for local programs.
Where to Get Help
- Maryland Legal Aid: Provides free civil legal help statewide. Call (410) 539-5340 or visit mdlab.org.
- Maryland Volunteer Lawyers Service (MVLS): Call (410) 539-6800 or visit mvlslaw.org.
- HUD-Approved Housing Counselors: Call 1-800-569-4287 or visit hud.gov/counseling.
Take Action
Contact your county tax office or Baltimore City immediately if you are behind on taxes. Apply for the Homeowners' Property Tax Credit if you may qualify.
Visit auctionblock.org/get-help for free resources and referrals.
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Laws and programs change. Verify current rules with SDAT or a licensed attorney. AuctionBlock.org is a mission-driven company.