(Bill 42-16, Bill 13-17 and Bill 21-19 )

Please read the following information regarding this Tax Credit program completely to ensure that you are eligible for the tax credit, before completing the Tax Credit application documents at the bottom of the page.

On March 7, 2017 the Montgomery County Council passed Bill 42-16, which provides a tax credit for people who are over 65 years of age and who either:

• Have owned and lived in the dwelling that they own for at least 40 consecutive years, or
• are retired from one of the United States’ armed forces (Air Force, Army, Coast Guard, Marine Corps, Navy), or are retired from the uniformed services of the National Oceanic and Atmospheric Administration or the Public Health Service, or are retired from the military reserves or the National Guard. To meet the Military Retiree requirement, one must be retired from one of these services. Being a veteran of a service but not actually having retired status from that service does not meet the requirements for this tax credit.

To receive this tax credit beginning July 1, 2025, your birthday must be on or before  June 30, 1960. For those who are applying as 40+ year owners, your deed must be dated  June 30, 1985 or earlier. 

The owner who is 65 or over and has owned and lived in the dwelling for at least 40 consecutive years, must be on the deed for the property.  The owner who is 65 or over and is a military retiree must also be on the deed for the property. Not all owners must be over 65 or over, just the one that meets the requirements to receive the tax credit, listed above. Not all owners must have owned and lived in the dwelling for at least 40 consecutive years, just the one that meets the requirements above. Not all owners must be retired from the U. S. armed forces, just the one that meets the requirements above.

The tax credit provides a 20% credit, on County property taxes only, only for owner-occupied dwellings for which at least one of the owners meets the eligibility requirements noted above. The credit is granted for 7 consecutive years, and the credit is not available after that 7 year period. There is only one credit—if an owner is 65 or over and has owned and lived in the same dwelling for at least 40 consecutive years, AND that owner is also a military retiree, the tax credit is still a 20% tax credit on County property taxes only, for 7 consecutive years.

Please note that the term “dwelling” means the entire property, not just the home on the land—it includes the land. The assessment on a dwelling is therefore the assessment that is shown on your tax bill, as this includes both the home and the land.

For owners that are at least 65 years of age and have owned and lived in the same dwelling for at least 40 consecutive years, the tax credit is only available if the dwelling has an assessment of $700,000 or less, at the time of the application for the credit. If the dwelling is assessed at more than $700,000, then the property is not an eligible property, and no credit will be granted.

For owners that are at least 65 years of age and are military retirees the tax credit is only available if the dwelling has an assessment of $550,000 or less, at the time of the application for the credit. If the dwelling is assessed at more than $550,000, then the property is not an eligible property, and no credit will be granted.

Please note that for all properties that are titled in the name of a trust or in the name of the trustees of a trust, an Affidavit Re Trust Ownership must be completed, signed, and submitted with the Tax Credit Application.

SURVIVING SPOUSE:
Bill 17-18 also added a provision that allows Surviving Spouses of Military Retirees to receive the tax credit, if their Military Retiree would have been eligible at the time of his or her death, and if the Surviving Spouse never remarried after being married to the Military Retiree. This means that the Military Retiree, at the time of his or her death, would have to have been at least 65 years old, and would have to be retired from the Army, Navy, Air Force, Marines, Coast Guard, the National Guard, the Military Reserves, the uniformed corps of the Public Health Service or the uniformed corps of the National Oceanic and Atmospheric Administration.

Being a veteran of one of the armed services or a veteran of one of the previously mentioned uniformed services is not sufficient—the Military Retiree had to have been retired from one of these services. 

To receive a Surviving Spouse tax credit you must provide (1) a copy of the death certificate for the deceased Military Retiree; (2) an affidavit signed by the Surviving Spouse declaring that the Surviving Spouse did not remarry after being married to the Military Retiree; and (3) proof that the Military Retiree was retired from one of the services mentioned above (and not only a veteran of one of those services). Without this documentation your application will be rejected.

The application deadline is April 1 of every year. Approved applications submitted by the April 1 deadline will be processed on the property tax bill that is issued in July in the same year.

THE TAX CREDIT APPLICATION MUST BE RECEIVED ON OR BEFORE APRIL 1.

 

APPLICATIONS AND REQUIRED DOCUMENTATION

Individuals 65 and Above and Retired Military Services Members Tax Credit Application
Affidavit Re Trust Ownership
Surviving Spouse Application
Surviving Spouse Affidavit

Note: Incomplete Applications will not be processed.
Please make sure that you provide the required attachments with your Application .

If approved, the tax credit will appear as a line item deduction on the bill. You can review your bill on our website at  https://apps.montgomerycountymd.gov/realpropertytax . At this site you can look up your tax bill by address, by your account number, or by your bill number.

The revised bill amount will also be available by calling MC311 (dial 311 if you are in the County, and dial 240-777-0311 if you are calling from outside of Montgomery County).


Please mail your application to:
Department of Finance, Division of Treasury
Attn: Bill 42-16 Tax Credit
27 Courthouse Square, Suite 200
Rockville, Maryland 20850