BALTIMORE — Property tax assessments in Maryland will climb in 2025, reflecting the state’s tight housing inventory and rising home prices and leading to higher tax bills for many owners.

The total assessed value on residential and commercial property around the state rose a combined 20.1% over three years, according to the State Department of Assessments and Taxation, or SDAT.

The state appraises its more than 2 million property accounts once every three years, splitting properties in each county and Baltimore City into three groups, with one group getting reassessed each year.

The overall statewide increase for the 712,782 properties reassessed for 2025 trailed 2024’s jump of 23.4%, state figures released Monday show. The current group of properties — Group 1 — was last assessed three years ago in January 2022, when the announced increased value on the same residential and commercial properties was 12%.

Those property owners can expect their tax bills soon, as assessment notices were mailed out Monday. Appeals must be filed within 45 days of the date on the notice.

In the state as a whole, homes jumped an average 21.1% in value in the current assessment, while commercial properties rose 16.4% over the three-year period.

In Baltimore City, home assessments rose 21% and commercial properties went up 11% In Baltimore County, residential properties increased 25.3% commercial properties 15.9%.

Baltimore city and county rates decreased slightly over last year’s assessments of Group 3 properties. Combining residential and commercial properties, Baltimore City’s property values saw a 0.5% lower change in property values, down from 17.9% in 2024. Baltimore County similarly slowed 0.7% year over year, from 23.3% in 2024.

Last year marked the sixth consecutive year that all 23 counties and Baltimore City saw an an increase in residential and commercial property values, a streak that’s now continued into its seventh year.

The 2025 assessments were based on an evaluation of 60,761 sales that occurred within the group over the last three years.

If an owner’s property value goes up as a result of the reassessment, that increase will be phased in equally over the next three years. However, state law caps the taxable portion of the increase at 10% annually, and many local governments have implemented even smaller maximum taxable increases.

In Baltimore City and Baltimore County, for example, the taxable assessment cap is 4% annually, so eligible property owners may not see their taxes rise at the same rate as their assessment over the next three years.

The vast majority, 96.9%, of the total group assessed saw their home values increase. Any loss of value will be fully reflected in the 2025 tax year.

Somerset County had the greatest rise in overall property values across the state at 32%. Its residential properties increased the most in value, 37.7% since the last assessment, but it also had the lowest rise in commercial property values at 2.5%. Allegany County’s business properties jumped the most over 2022’s rates at 46.7%.

At the end of 2023, the assessments department had revamped property tax notices to include information about the state’s homeowners’ and homestead tax credits, which the department said save property owners millions in taxes each year.

“Last year, Maryland homeowners saved over $60 million in taxes through the Homeowners’ Tax Credit, and over $345 million in taxes through the Homestead Tax Credit,” a spokesman for the department wrote in an email.

“Property values continue to reflect that there is a robust demand for real estate in Maryland due to the State’s continuing desirability as a place to live, work, and do business. This robust demand is paired with a limited supply of available homes for sale. Market-wide, the average number of homes available for sale per month in Maryland has decreased by 59% since 2019,” the SDAT spokesman said, explaining why property values continue to rise in the state.

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