Property assessments in Southern Maryland’s Calvert, Charles and St. Mary’s counties increased between 9.0 percent and 12.5 percent for the 2026 tax year, according to data released by the Maryland Department of Assessments and Taxation on December 30, 2025. The changes affect Group 2 properties, which encompass one-third of the state’s real estate and were last evaluated in 2023. Statewide, the average rise stood at 12.7 percent for the 789,178 properties in this cycle, with residential values climbing 13.2 percent and commercial values advancing 11.0 percent.
In Calvert County, total full cash values for residential and commercial properties combined rose from $5,070,349,500 to $5,524,908,300, marking a 9.0 percent increase. Residential properties, valued at $4,690,864,300 in 2023, reached $5,104,398,800, up 8.8 percent, while commercial values grew from $379,485,200 to $420,509,500, a 10.8 percent gain. Among the county’s 12,233 properties, 11,057 saw increases, equating to 90.39 percent. Residential properties numbered 10,856, with 10,757 experiencing value growth, or 99.09 percent.
Charles County recorded a 12.5 percent overall increase, with combined values advancing from $6,326,759,700 to $7,117,385,300. Residential assessments climbed 12.7 percent from $5,957,289,300 to $6,713,444,600, and commercial values rose 9.3 percent from $369,470,400 to $403,940,700. Of 19,308 total properties, 17,361 increased in value, representing 89.92 percent. For the 16,195 residential properties, 15,578 saw gains, or 96.19 percent.
St. Mary’s County saw a 10.7 percent total rise, with values moving from $6,534,816,600 to $7,232,502,200. Residential properties increased 10.5 percent from $6,008,579,400 to $6,637,791,400, and commercial properties advanced 13.0 percent from $526,237,200 to $594,710,800. Among 17,920 properties, 16,636 experienced increases, or 92.83 percent. Residential counts totaled 15,046, with 14,758 rising, equating to 98.09 percent.
These figures stem from evaluations of 57,543 sales within Group 2 areas during the three-year period. The department divides Maryland’s more than two million property accounts into three groups for triennial reassessments to ensure equitable taxation based on market conditions Notices for Group 2 properties were mailed December 30, 2025, informing owners of new full cash values effective January 1, 2026.
The increases reflect a moderation in growth compared to recent cycles. Statewide, the 12.7 percent rise lags the 20.1 percent increase for Group 1 in 2025 and the 23.4 percent for Group 3 in 2024. “Property values are still rising, but at a more sustainable pace,” said Maryland Department of Assessments and Taxation Director Bob Yeager. “After the rapid increases seen during the post-COVID recovery, this moderation is an important step toward balancing household wealth growth with housing affordability.”
Property taxes in Maryland are calculated on assessed values, with the state rate set at $0.112 per $100 of assessed value for fiscal year 2026. Local rates vary: Calvert County applies $0.967 per $100, Charles County $1.141 per $100 and St. Mary’s County $0.8478 per $100. While assessments do not directly dictate tax bills—local governments set rates and may adjust them—the value changes can influence revenues unless offset by rate reductions.
To mitigate impacts, increases in assessed values are phased in equally over three years, meaning only one-third of any rise applies in the first year. Decreases take full effect in 2026. The Homestead Tax Credit further limits annual taxable assessment growth for owner-occupied principal residences. State law caps this at 10 percent, but counties can set lower thresholds: Calvert at 10 percent, Charles at 7 percent and St. Mary’s at 3 percent for the July 1, 2026, tax year. Eligibility requires a one-time application, and the credit applies only to the principal residence, with owners verifying status via the department’s real property database. For instance, if an assessment rises from $300,000 to $360,000 in Calvert, the taxable increase is capped at 10 percent, or $30,000, for the first year, with the credit covering taxes on the excess.
Property owners dissatisfied with their assessments have 45 days from the notice date to appeal. The process begins with a first-level appeal to the local assessment office, followed by potential reviews by the Property Tax Assessment Appeals Board and the Maryland Tax Court if needed. Forms are available on the department’s website, and owners should gather evidence such as comparable sales or property condition details to support claims.
Additional relief comes through the Homeowners’ Tax Credit, which limits taxes based on household income for eligible residents. For 2026, applications are due by April 15, 2026, with income limits set at $60,000 for individuals or couples, though credits can extend beyond this threshold in certain cases. The program provided $63.9 million in credits statewide in fiscal year 2025, up from $62.4 million the prior year.
Historically, Southern Maryland assessments have fluctuated with economic trends. In Calvert, values rose 19.4 percent in the 2025 cycle but only 9.0 percent this time. Charles saw an 11.9 percent increase in 2025, compared to 12.5 percent now, while St. Mary’s dropped from 18.1 percent to 10.7 percent. Statewide trends show recovery from post-2013 declines, peaking in 2023-2024 before moderating.
The reassessment process, mandated by state law, aims to align values with current market data for fair taxation. In Southern Maryland, where populations range from about 90,000 in Calvert to 120,000 in Charles and St. Mary’s, these changes could affect local budgets for services like schools and roads, depending on county commission decisions on rates