You still have time to apply for the 2024 Maryland Renters’ Tax Credit Program before the final deadline on October 1, 2024. The program provides property tax credits for renters who meet certain requirements, reasoning that renters indirectly pay property taxes as part of their rent and thus should have some protection, like homeowners. The plan was modeled after and designed to be similar in principle to the Homeowners’ Tax Credit Program, which is known to many as the Circuit Breaker Program. Sign up to receive important email updates about these tax credits.   

The tax credit is based on the relationship between rent and income. If the part of your rent that the state assumes covers property taxes, is more than a certain portion of your income, the renter can, under specified conditions, receive a credit of as much as $1,000. The credit is paid as a direct check from the State of Maryland. 

A properly completed application means that all questions are answered, the form is signed, copies of the entire federal income tax return, schedules and forms, necessary Social Security form (SSA-1099), Railroad Retirement Verification or rate letter are all included, and applicant has provided responses to any subsequent inquiries made by the Department in a reasonable timeframe. 

  1. A new application must be filed every year if you wish to be considered for a tax credit. Applicant must satisfy all five (5) legal requirements listed below before eligibility can be considered: 
  2. Applicant must have a bona fide leasehold interest in the property and be legally responsible for the rent; and 
  3. First time applicants, and those who have moved during the previous year, must submit a copy of their lease(s), rental agreement, cancelled checks, money order receipts, or other proof of rent paid. Other applicants must submit a copy upon request; and 
  4. The principal residence must be in Maryland and where the applicant resided for at least six (6) months of the year; and 
  5. The dwelling may be any type of rented residence or a mobile home pad on which the residence rests, but it may not include any unit rented from a public housing authority or from an exempt organization; and 
  6. Applicant, spouse and/or co-tenant(s) combined net worth is considered as well as rent paid in Maryland to qualify.  
  7. The property tax relief a renter may receive is based upon a comparison of the assumed real property tax in the yearly rent minus a percentage of the household income as shown here: 

0% of the first $4,000 of income
2.5% of the next $4,000 of income
5.5% of all income in excess of $8,000 

  1. The applicant may later be requested to submit additional information to verify what was reported on the application. This request may include a statement of living expenses when it appears that the applicant has reported insufficient means to pay the rent and other living expenses. 

See further information at Renters’ Tax Credits (maryland.gov). There are tables that reflect the income limits for eligibility for this program which will help you determine if you are eligible. 

It is suggested that you submit your application online .2024RTCApplication.pdf (maryland.gov)