Business Property Tax
The business property tax rate is $0.53 per $100 of assessed corporate personal property. Certain manufacturing and technology-related businesses and those located in certain designated areas are eligible for tax credits or exemptions. Shared revenues to which Gaithersburg is entitled enable the City to keep business tax bills low while offering a variety of quality services. Benefits of locating within the corporate limits include responsive elected City officials and an administrative staff that is readily accessible to meet the needs of residents and businesses. Officials and staff represent the City in government affairs at the county, state and federal levels as well.
Learn more about economic programs and incentives at growgaithersburg.com.
Individual Property Tax
The residential property tax rate is $0.262 cents for each $100 of assessed value of property (effective July 1, 2010). Property taxes are collected by Montgomery County and are included in your County tax bill. Please contact the City of Gaithersburg Department of Finance and Administration if you have questions about the Gaithersburg portion of your bill.
Gaithersburg residents receive many services for the taxes they pay. Some tangible municipal services include street lighting, snow removal, street maintenance and reconstruction, street sweeping, leaf collection, sidewalk repair, maintenance of street name signs and traffic control devices on City streets.
Other services include maintenance and development of parkland, award-winning recreation programs, a stormwater program and storm drainage maintenance, City Police for supplemental crime prevention and enforcement of City laws, animal control, zoning, building, electrical, fire and rental housing inspections, and autonomous local planning authority.
Homeowners Property Tax Credit
The State of Maryland Homeowners Property Tax Credit program allows credits against a homeowner’s property tax bill if those taxes exceed a fixed percentage of the person’s gross income. In other words, it sets a limit on the amount of property taxes an eligible homeowner must pay based upon income.
In 2006, the City was granted inclusion by the State to extend the tax credit to qualified City property taxpayers. Homeowners who file and qualify by May 1 will receive the credit directly on their tax bill or as a credit certificate issued at the same time the property tax bill is mailed. Those who file later, up until the September 1 deadline, will receive any credit due either in the form of a revised tax bill or a tax credit certificate to be used in payment of the bill.