What Is the Renters’ Tax Credit?

You might be surprised to learn that there is renters’ tax credit available to many Maryland renters. Because renters pay property taxes through their rent payments, this Credit has been established to offset some of their property tax contributions.

There’s a few key things to know about the Credit:

  • Eligibility is based on income and rent amount
  • It requires an annual application
  • Application deadline is October 1
  • Applications can be submitted between February until the October deadline
  • The Credit can be up to $1,000
  • All household income sources are counted, including Social Security
  • The applicant must be legally responsible for the rent (ie on the lease)
  • Rent paid to a public housing authority or tax-exempt organization isn’t eligible for the Credit
  • Anyone under 60 is only potentially eligible if there is a dependent under 18 living in the home

The Credit can provide critical funds for Marylander renters. 

The new MVLS factsheet on the Renters’ Tax Credit walks an individual through the eligibility and the application process with step-by-step instructions including what documentation is required with the application. 

If you are a volunteer working with a MVLS client, consider asking if the client is filing for this Credit. Note that many individuals struggle with the Renters’ Tax Credit application and your assistance, while requiring very little time, can be a major barrier removal for them to achieving housing stability.

The MVLS Renters’ Tax Credit factsheet is available for download.