What DC, Maryland, and Virginia Homeowners Need to Know About Property Taxes
Property taxes are the ongoing cost of homeownership that most buyers think about the least during the purchase process and complain about the most once they own. In the Washington DC metro area, where home values are high and jurisdiction-by-jurisdiction tax rate differences are meaningful, understanding property taxes before you buy is a significant part of calculating your true cost of ownership.
Here is how property taxes work in DC, Maryland, and Northern Virginia in 2026 and what every homeowner should know about reducing what they owe.
How Property Taxes Work in the DMV
Property taxes are calculated as a percentage of your home's assessed value. The tax rate is set by the local government and applied annually to produce your tax bill. The critical distinction is between assessed value and market value, these are not always the same, and the gap between them is where significant tax savings can be found.
In most DMV jurisdictions, properties are assessed periodically rather than annually at full market value. When a property's market value rises faster than its assessed value, which has happened consistently in the DMV's appreciating market, owners pay taxes on an assessed value that may be significantly below current market value.
Washington DC Property Taxes
Washington DC's residential property tax rate is $0.85 per $100 of assessed value, or 0.85%. This is actually lower than most Maryland and Virginia counties, partially offsetting DC's higher transaction costs.
On a $600,000 DC home with a $600,000 assessed value, the annual property tax bill is approximately $5,100, or $425 per month when included in your mortgage escrow.
DC's homestead deduction for primary residences reduces your assessed value by $91,950 in 2026. For a home assessed at $600,000, this reduces your taxable assessed value to $508,050 and saves approximately $780 in annual property taxes. This deduction is available only for owner-occupied primary residences and must be applied for.
DC also has a Senior Citizen and Disabled Property Tax Relief program that caps annual property tax increases at 5% for qualifying seniors and disabled residents, an important protection for long-term DC homeowners on fixed incomes.
DC taxes property semi-annually with bills due in March and September. At closing on a DC property, taxes are prorated based on your settlement date.
Maryland Property Taxes by County
Maryland property taxes consist of both a state rate and a county rate, combined into a single annual bill. The total effective rate varies significantly by county.
Prince George's County total rate: approximately 1.27% of assessed value, with a state rate of 0.112% combined with the county rate of approximately 1.0% plus municipality rates where applicable.
Charles County total rate: approximately 1.0% to 1.1% of assessed value, one of the more moderate rates in the DMV-accessible Maryland counties.
Montgomery County total rate: approximately 0.9% to 1.1% depending on municipality, though Montgomery County's high property values mean dollar amounts are significant even at these rates.
Frederick County total rate: approximately 0.9% to 1.0%, making it a relatively competitive option for buyers seeking value outside of Montgomery County.
Maryland assesses properties at full cash value with physical inspections on a three-year cycle. The state caps property tax increases at 10% per year for owner-occupied properties through the homestead tax credit, a significant protection in an appreciating market.
Maryland's homestead tax credit is automatic for owner-occupied properties but requires application in the first year of ownership. Without it, your taxes can increase by the full amount of any assessed value increase, which in the DMV's appreciating market can be substantial.
Northern Virginia Property Taxes
Virginia property taxes are set at the county level, with municipalities in Northern Virginia having some of the highest assessed values in the state but moderate rates.
Fairfax County: $1.11 per $100 of assessed value (1.11% effective rate). On a $700,000 Fairfax County home, this produces an annual property tax bill of approximately $7,770.
Arlington County: $1.013 per $100 (1.013%). On a $900,000 Arlington property, the annual bill runs approximately $9,117.
Loudoun County: $0.865 per $100 (0.865%), with one of the lower effective rates in Northern Virginia.
Prince William County: $1.115 per $100, similar to Fairfax.
Virginia assesses properties annually. Most Northern Virginia counties reassess at or near market value each year, which means your tax bill adjusts more quickly to market appreciation than Maryland's three-year cycle.
Virginia does not have a statewide homestead exemption in the same way Maryland does, but most Northern Virginia localities have senior tax relief programs and some have exemptions for disabled veterans.
How to Appeal Your Property Tax Assessment
Every DMV jurisdiction provides a formal process for homeowners to appeal their property tax assessment if they believe their home has been assessed above its actual market value.
In Washington DC, file an appeal with the Office of Tax and Revenue's Real Property Tax Administration within 30 days of receiving your assessment notice. Present comparable sales data showing lower values than your assessment.
In Maryland, file an appeal with the Maryland State Department of Assessments and Taxation within 45 days of receiving your assessment notice. The process is straightforward and many homeowners who appeal receive meaningful reductions.
In Virginia, contact your county's real estate assessment office within the timeline specified on your assessment notice. Fairfax County, Arlington, and Loudoun all have formal appeal processes with hearings before assessment boards.
The appeal process in all three jurisdictions is accessible to homeowners without an attorney. The key is presenting clear comparable sales data from recent arm's-length transactions in your immediate neighborhood that support a lower assessed value.
Property Taxes at Closing
At closing, property taxes are prorated between buyer and seller based on the settlement date. The direction of proration depends on the jurisdiction.
In DC and Virginia, taxes are paid in arrears, you pay at the end of the period. At closing, the seller reimburses the buyer for the portion of the current tax period they lived in the home.
In Maryland, the semi-annual tax bill is paid in advance. The proration at closing depends on where you fall in the billing cycle and can result in either a credit to the buyer or a charge to the seller depending on timing.
Your settlement statement will show the exact proration amount. Ask your agent or settlement company to explain the tax proration before closing so there are no surprises on your Closing Disclosure.
Book a free consultation at donnellwilliams.com/donnells-calendar with any questions about how property taxes factor into your specific purchase decision or your current homeownership costs.
Published as part of our June Homeownership Month series. New posts every day throughout June covering everything DMV buyers, renters, and homeowners need to know about the local market.
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