MD HB1273

Reduces the maximum homestead tax credit percentage from 110% to 105% for State property tax, bicounty commission property tax, and the cap for county and municipal property taxes

Creates a new homestead credit portability adjustment allowing homeowners who move to transfer a portion of their homestead tax credit benefit from a previous dwelling to a new dwelling

Eligibility for portability requires the homeowner to have received the homestead credit on a previous dwelling within 3 years before acquiring the new dwelling

Caps the portability adjustment at $500,000 of the new dwelling's assessment, with the adjustment applying each year the homeowner receives the homestead credit on the new property

Effective date is July 1, 2026, with the Department authorized to adopt implementing regulations and modify application forms