Confused about how property taxes work in Anne Arundel County compared to the City of Annapolis? You are not alone, especially if you are relocating to Maryland and trying to plan a budget. Property taxes affect your monthly payment, your escrow, and your closing-day prorations. In this guide, you will learn who taxes what, where to find the current rates and deadlines, and how to estimate your monthly escrow with confidence. Let’s dive in.
County vs. city taxes at a glance
If you buy in Anne Arundel County, your property may be taxed by two separate authorities.
- If the home is inside Annapolis city limits, you pay the Anne Arundel County real property tax and the City of Annapolis municipal real estate tax. Each is applied to your assessed value.
- If the home is outside city limits, you pay only the county property tax, plus any special district levies that apply to that parcel.
Your tax bill may also include special district charges where applicable. Water, sewer, and refuse are often billed separately by utilities and may not appear on the property tax bill.
How to confirm if a home is inside Annapolis
Before you estimate taxes, confirm whether the property sits inside the City of Annapolis boundary.
- Use the Anne Arundel County GIS and Parcel Viewer to verify municipal boundaries at the parcel level.
- Cross-check the parcel in the Maryland SDAT Real Property Search to view the official record and any exemption flags.
If you cannot confirm the boundary online, contact the City of Annapolis Tax Office through the city’s finance department for verification.
- Look up parcel details on the SDAT Real Property Search.
- Review maps through the Anne Arundel County finance and GIS resources.
Where assessments and rates come from
Understanding who sets what helps you know where to look for updates each year.
- Assessed value: Maryland SDAT sets assessed values used on your bill. Check a property’s assessed value, current exemptions, and history on the SDAT Real Property Search.
- County tax rate: The Anne Arundel County Council adopts the county rate annually during the budget process. The current adopted county rate, billing calendar, and payment options are posted by the Anne Arundel County Office of Finance.
- City tax rate: The Annapolis City Council adopts the municipal rate for properties within city limits. The city publishes its current rate and deadlines on the City of Annapolis Department of Finance pages.
Always verify that you are viewing the most recent adopted rates for the current tax year before you estimate escrow or submit an offer.
- Check county rate and calendar on the Anne Arundel County Office of Finance.
- Check city rate and deadlines on the City of Annapolis Department of Finance.
- Check assessed values and exemptions via SDAT’s Real Property Search.
How your bill is built
Your bill will show:
- Assessed value set by SDAT
- Any exemptions or credits
- Taxable value after credits
- Each levy line item, such as county tax, Annapolis municipal tax if applicable, and special districts
- Total amount due and due dates, plus any penalty or interest provisions for late payment
Read each line to understand both the taxable base and the rate applied by each authority.
Billing cycle, deadlines, and penalties
Tax rates are adopted once per year during the county and city budget cycles. Bill mailing dates, due dates, and penalty start dates can vary by year and by jurisdiction.
- Anne Arundel County posts current-year billing schedules and payment methods through the Office of Finance.
- The City of Annapolis posts its current-year real property tax information, including payment deadlines, through the Department of Finance.
If you need to dispute your assessed value, SDAT manages the appeals process and deadlines. Check SDAT for current procedures and timing before you file.
Estimating monthly escrow for taxes
You can estimate your monthly escrow in a few steps. Before you start, confirm whether the home is inside Annapolis and gather the inputs below.
Key inputs:
- Assessed value (A) from SDAT
- County rate (Rc) and, if inside Annapolis, city rate (Ra)
- Any special district levies (Rd)
- Credits or exemptions (E), such as homestead
Standard steps:
- Taxable value = Assessed value (A) minus exemptions/credits (E)
- Annual tax = Taxable value × (Rc + Ra + Rd)
- Check how rates are expressed. If the rate is per $100, divide by 100 before multiplying. If per $1,000, divide by 1,000.
- Monthly escrow estimate = Annual tax ÷ 12
Hypothetical example for illustration only:
- Assessed value (A) = 600,000 dollars
- Credits (E) = 0 dollars for simplicity
- County rate (Rc) = 0.95 per 100 dollars (hypothetical)
- City rate (Ra) = 0.74 per 100 dollars (hypothetical)
- Special district (Rd) = 0.05 per 100 dollars (hypothetical)
Convert rates: sum of rates per 100 dollars = 0.95 + 0.74 + 0.05 = 1.74 per 100 dollars. As a decimal, 1.74 per 100 dollars equals 0.0174.
- Taxable value = 600,000 dollars
- Annual tax = 600,000 × 0.0174 = 10,440 dollars (hypothetical)
- Monthly escrow estimate = 10,440 ÷ 12 ≈ 870 dollars per month
Note: These rates are placeholders. For a real estimate, pull the parcel’s assessed value from SDAT and the current adopted rates from the county and city finance pages.
Prorations at closing
Property taxes are typically prorated between buyer and seller based on the closing date. The settlement agent calculates this using the annual tax, divided to a daily rate, then multiplied by the days each party owns the home during the tax period.
- Daily tax rate = Annual tax ÷ 365
- Seller credit or charge = Daily tax rate × days the seller owned the home in the current period
- Buyer credit or charge = Daily tax rate × days the buyer will own the home in the current period
Confirm the exact proration method with your closing agent. Lenders may also collect several months of taxes into escrow at closing, depending on billing timing and underwriting requirements.
Credits, exemptions, and special cases
Maryland offers credits that can reduce your taxable amount or limit assessment increases on an owner-occupied principal residence.
- Homestead Property Tax Credit: Learn about eligibility and how to apply on Maryland SDAT’s Homestead Tax Credit pages. You can verify whether a parcel already has the homestead credit in SDAT records.
- Other credits: Senior, disabled, veteran, and local homeowner credits may be available through state and county programs. Check SDAT and county finance resources for current programs and application steps.
Some parcels also carry special levies for municipal services or stormwater management. These line items show on the tax bill or separate county notices.
What is not usually on the property tax bill
Not all housing costs are collected through the tax bill. In many cases, water, sewer, and trash are billed separately by the city or county utility. Budget for those utilities in addition to your property taxes.
Quick checklist before you estimate
Use this checklist to avoid common mistakes and missing information.
- Look up the parcel on SDAT to confirm the assessed value and any exemption flags.
- Verify whether the home is inside Annapolis using the county’s GIS and, if needed, the city’s tax office.
- Pull the current adopted county and city rates from their finance pages. Confirm the rates are for the current tax year.
- Confirm whether rates are stated per 100 dollars or per 1,000 dollars and convert correctly.
- Ask your lender how many months of reserves will be collected for escrow at closing.
- Ask your settlement agent how taxes will be prorated on the closing statement.
If you want help cross-checking a specific address, we can walk through SDAT and the county and city pages with you.
Helpful official resources
- Check parcel assessed values on the SDAT Real Property Search.
- Review county rates, calendars, and payments at the Anne Arundel County Office of Finance.
- Review municipal rates and deadlines via the City of Annapolis Department of Finance.
- Learn about eligibility and applications on SDAT’s Homestead Tax Credit pages.
Ready to compare neighborhoods or plan your escrow with a real property in mind? Reach out and we will help you confirm city limits, pull current rates, and map out closing-day numbers with your lender and title team.
Looking for more relocation help? Download the Ultimate Moving to Maryland Guide and get neighborhood-level insights, timelines, and checklists tailored to your move. If you would like hands-on guidance, connect with us at Moving to Maryland with Shari and we will support you from search to closing.
FAQs
Do Annapolis homes pay both county and city property taxes?
- Yes. If a parcel lies inside the City of Annapolis, you typically pay both the Anne Arundel County tax and the Annapolis municipal tax. Confirm parcel boundaries before you estimate.
Where can I find current Anne Arundel and Annapolis tax rates?
- The Anne Arundel County Office of Finance publishes the adopted county rate and calendar, and the City of Annapolis Department of Finance posts the municipal rate and deadlines for the current year.
How do I estimate my monthly escrow for taxes in Anne Arundel?
- Multiply your taxable value, which is assessed value minus credits, by the sum of applicable rates, then divide by 12. Use SDAT for assessed value and county and city pages for current rates.
Who pays property taxes at closing in Maryland?
- Taxes are usually prorated between buyer and seller based on the closing date. Your settlement agent calculates and shows the prorations on the closing statement.
What should I do if I think my assessed value is too high?
- Maryland SDAT manages assessment appeals with specific deadlines. Review the process and timing on SDAT resources before you file.
