Maryland does not automatically waive property tax for SSDI recipients, but the state offers a separate tax credit for people with disabilities that reduces what you owe

If you receive SSDI and own property in Maryland, you still owe property tax unless you meet the rules for Maryland's Homeowners' Property Tax Credit for Disabled Persons. This is a different program from SSDI itself — Social Security does not pay your property tax, and being on SSDI alone does not exempt you from it. However, Maryland law allows you to reduce your property tax bill if you are totally disabled and meet income and asset limits.

The credit is not automatic. You must file a form with your county assessor's office each year to claim it. The amount you save depends on your income, your home's assessed value, and which county you live in, because each Maryland county sets its own property tax rate.

Key Takeaways

  • SSDI income alone does not exempt you from Maryland property tax; you must explore for the Homeowners' Property Tax Credit for Disabled Persons to reduce what you owe.
  • You must be totally disabled according to Social Security, Medicare, or the Veterans Administration, and your household income must fall below the state limit (which changes yearly).
  • The credit is claimed on Form 4-B, filed with your county assessor's office by September 1 each year for the following tax year.
  • The amount you save varies by county and depends on your income and home value; some disabled homeowners pay zero property tax, while others receive a partial reduction.
  • If you are a renter, Maryland offers a separate Renters' Tax Credit that works differently and has its own income limits.

Who qualifies for Maryland's disability property tax credit

To claim the credit, you must be totally disabled as defined by one of three sources: Social Security (including SSDI), Medicare (Part A or B for disability), or the Veterans Administration. If you receive SSDI, you already have proof of total disability from Social Security, which is what the county assessor needs.

You must also own and live in the home as your primary residence. The home can be a house, condo, or cooperative apartment, but it must be in Maryland. You cannot claim the credit on a second home or rental property.

Your household income must be below the limit set by Maryland each year. For 2024, the income limit is $35,000 for a single person and $43,500 for a married couple filing jointly. These limits increase slightly each year. If your SSDI income plus any other household income (wages, pensions, rental income, interest) exceeds the limit, you do not may have access to.

How the credit amount is calculated

Maryland's formula for the credit is based on your income and your home's assessed value. The state does not publish a straightforward table — instead, each county assessor's office calculates the credit individually. Generally, the lower your income relative to your home's value, the larger the credit.

For example, a disabled homeowner with $20,000 in annual income and a home assessed at $200,000 may receive a larger credit than someone with $34,000 in income and the same home value. A homeowner with very low income may owe zero property tax; others may see a reduction of several hundred dollars per year.

Because the calculation depends on your county's tax rate and assessment practices, the same income and home value can produce different credits in different counties. You can contact your county assessor's office to estimate what your credit would be before you file.

How to file for the credit each year

You claim the credit by filing Form 4-B: process for Homeowners' Property Tax Credit for Disabled Persons with your county assessor's office. The form asks for your name, address, proof of disability, household income, and home value. You must file by September 1 of the year before the tax year you want the credit for — so to get the credit on your 2025 tax bill, you file by September 1, 2024.

You will need to provide proof that you are totally disabled. If you receive SSDI, bring a copy of your Social Security award letter or a current benefit statement from your My Social Security account. The assessor may also accept a Medicare card showing disability coverage or a VA disability rating letter.

You must also report your household income for the prior year. If you received SSDI, use the amount shown on your Social Security Benefit Statement or your tax return. Include income from all household members who live with you — spouse, adult children, roommates — even if they are not related to you.

What happens if your income or home value changes

If your SSDI benefit increases or you receive a cost-of-living adjustment, you must report the new income when you renew your credit process the following year. If your income rises above the state limit, you will lose the credit for that year. If it drops back below the limit, you can reapply.

If your home's assessed value changes — because you made improvements, the county reassessed, or you refinanced — the assessor will recalculate your credit. A higher assessed value may reduce the credit amount. You can appeal a county assessment if you believe it is wrong, but that is a separate process from the disability credit.

If you sell your home or move out of Maryland, you must notify your county assessor. The credit applies only to your primary residence, so you cannot claim it on a new home until you file a new process for that property.

Renters with disabilities and the Maryland Renters' Tax Credit

If you receive SSDI but rent rather than own, you cannot use the Homeowners' Property Tax Credit. Instead, Maryland offers the Renters' Tax Credit, which provides a state income tax reduction for renters with low income. This is a different benefit with different income limits and rules.

The Renters' Tax Credit is claimed on your Maryland state income tax return (Form 502CR) and does not require a separate process to your county. The credit is based on rent paid during the year, not on disability status, though disability can affect your income calculation. If you are a renter and receive SSDI, ask your tax preparer or the Maryland Department of Revenue whether you may have access to for the Renters' Tax Credit in addition to any federal tax credits you may claim.

Interaction with SSDI and other benefits

The Maryland property tax credit does not affect your SSDI benefits. Social Security does not count the credit as income, and claiming it will not change your monthly SSDI payment or your Medicare coverage. The credit is a state tax reduction, separate from federal benefits.

However, if you are also receiving Supplemental Security Income (SSI) in addition to SSDI, the property tax credit may count as a resource or income depending on how it is structured. If you receive both SSDI and SSI, contact your local Social Security office before claiming the credit to confirm it will not reduce your SSI payment.

The credit also does not affect Medicaid. If you receive Medicaid through Maryland, the property tax credit will not change your coverage or cost-sharing.

Frequently Asked Questions

Do I have to file for the property tax credit every year?

Yes. You must file Form 4-B by September 1 each year to claim the credit for the following tax year. If you do not file, you will owe full property tax even if you may have access to the previous year. Some counties offer renewal by mail if your situation has not changed, so ask your assessor's office whether you can renew without a new process.

What if I missed the September 1 important date?

Contact your county assessor's office when ready. Some counties allow late filing if you have a good reason, but there is no may provide. Filing late may delay your credit or disqualify you for that tax year. It is better to file as soon as you know you are disabled and own a home in Maryland.

Can I claim the property tax credit if I am on SSDI but also work part-time?

Yes, if your total household income (SSDI plus wages) stays below the state limit. You must report all income when you file. Work incentives like the Student Earned Income Exclusion or Plan to Achieve Self-Support (PASS) may reduce the income you have to report to Social Security, but Maryland's property tax credit uses your actual income, not your SSDI calculation.

What if my county assessor says I do not may have access to because I am on SSDI?

Contact the Maryland Department of Assessments and Taxation or your county's disability services office. The law allows SSDI recipients to claim the credit if they meet the income and residency rules. If the assessor is incorrectly denying your process, you have the right to appeal the decision.

Does the property tax credit cover other taxes, like income tax or water bills?

No. The credit reduces only your property tax bill. It does not affect Maryland state income tax (though renters may claim a separate Renters' Tax Credit on their income tax return), and it does not cover water, sewer, or other utility bills.