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Retirement finances in Montgomery County, Maryland

Check local taxes, homeowner credits and help with bills before changing your retirement budget. These are starting points for residents and people considering a move. Agencies decide eligibility and award amounts.

Public sources checked October 31, 2026. The year beside each rule matters: 2026 credit forms do not establish a 2027 filing deadline. The adopted 2027 income-tax change is shown separately.

Start with the right tax base

Montgomery’s 2026 local income-tax rate is 3.20% of Maryland taxable income. It is additional to Maryland state income tax. Gross retirement income is not the tax base. Maryland deductions and exclusions must be worked out first.

Read the Comptroller’s 2026 county rates (PDF)

Published change for January 1, 2027

Council Resolution 20-1121 adopts these county income-tax brackets for tax year 2027. Each rate applies to its slice of Maryland taxable income, rather than applying the highest rate to the whole amount.

First $50,000
2.70%
Amount over $50,000 through $150,000
3.00%
Amount over $150,000
3.30%

Worked example: $100,000 of Maryland taxable income gives $1,350 on the first $50,000 plus $1,500 on the next $50,000: $2,850 of county income tax. This excludes state tax and does not calculate your Maryland taxable income.

Read the adopted 2027 county brackets (PDF)

Use the property address when planning a move

The county’s estimator includes state, county and municipal rates and non-tax charges. It estimates a buyer’s first full fiscal year and excludes property-tax credits. An existing owner’s bill can differ. A statewide average is not an estimate for your home.

Open the county’s address-based property-tax estimator

Local income tax

Maryland taxable income, after applicable state adjustments.

Medicare premiums

Medicare’s modified adjusted gross income (MAGI), usually from two years earlier. This is a different income measure.

Homeowner credit

The application’s gross household-income definition, including Social Security. Do not use taxable income instead.

Check three homeowner-credit routes

Credits use different tests and tax amounts. Do not add their percentages or assume they all reduce the whole bill.

1. Income-based homeowner credit and county supplement

For the 2026 state credit, gross household income must be $60,000 or less and net worth below $200,000, excluding the home and qualified retirement accounts. It is not limited to seniors. County supplemental rules can differ. One application to Maryland’s Department of Assessments and Taxation (SDAT) starts state and county supplemental review. The October 1, 2026 deadline has passed.

Read the 2026 SDAT application and income rules (PDF)

2. County senior credit

For eligible homeowners age 65 or older, the county senior credit is 50% of the combined state homeowner credit and county supplement. That is not 50% off the property-tax bill. Review this through the SDAT application rather than assuming a separate automatic award.

Review the county senior-credit program

3. Elderly individual or retired military credit

The separate 2026 application offers a 20% county-tax credit under its rules. It requires birth on or before June 30, 1961. The long-time-owner route requires owning and living in the property for 40 consecutive years, a deed dated on or before June 30, 1986, and an assessment no greater than $700,000; the retired-military route has a $550,000 assessment limit. The April 1, 2026 deadline has passed. Confirm all service, ownership and credit-interaction rules on the form.

Read the separate 2026 county application (PDF)

Before contacting the agency, gather the property account number, ownership dates, assessment, and the income and asset records requested by the form. Ask which credits can apply together and whether any late-filing or review option exists. The next credit-application cycle has not been verified. A published next-year income-tax rate does not confirm a credit filing date.

Open the Maryland homeowner-credit basic check

Get help with recurring bills

Utility bills

Montgomery’s energy-assistance office handles applications for help with home energy bills. Review current income rules, required documents and available assistance with the office. This guide does not promise an award or a processing time.

Find official utility-assistance application instructions

Medicare costs

Maryland’s State Health Insurance Assistance Program (SHIP) offers free, confidential counseling about Medicare and help finding cost-saving programs, including Medicare Savings Programs and Extra Help. It does not sell insurance.

Call Montgomery SHIP: 301-255-4250Verify the local contact and services

Bring confirmed amounts into your budget

Use confirmed tax bills, awarded credits and premiums when comparing retirement spending. The tools below do not automatically calculate county credits or a complete Maryland tax return.

Compare taxes, withdrawals and Medicare togetherCompare savings and money market returns after taxReview Maryland’s statewide retirement-tax example

Montgomery County financial checklist

Use these questions to prepare for a call about taxes, homeowner credits or help with bills. Confirm the open filing period and current form with the agency; this checklist does not decide eligibility.

Source check: October 31, 2026. Some linked forms describe an earlier application cycle.

Gather the records

  • Your property-tax bill, property account number and current assessment.
  • Ownership and residence dates, plus the supporting documents requested by the form.
  • The household income and asset records the agency asks you to provide.

Ask the agency

  • Which application cycle is open, and what filing deadline applies?
  • What counts as income and assets? Which household members need to provide records?
  • Which credits can apply together, and which part of the tax bill does each credit reduce?
  • How will I receive the decision, and whom should I contact if I need a review?

Official contacts and forms

For Medicare cost help, ask Maryland’s State Health Insurance Assistance Program (SHIP) about savings programs. For utility bills, ask the assistance office about current application requirements and the documents it needs.

Source dates and coverage

These checks describe the sources used by this guide. They are separate from application deadlines. A past-cycle record does not establish the next year’s rules.