How Property Taxes Work in DC, Maryland, and Virginia

Property taxes are one of the most overlooked homeownership costs — yet they directly impact your monthly mortgage payment. Here’s how they work in the DMV:

Washington, DC

• Property tax rate: ~0.85%

• Lower rate, but higher home prices

• First-time buyers may qualify for the Homestead Deduction (reduces assessed value by $78,700)

Maryland

• State rate + county rate (varies by jurisdiction)

• Prince George’s County: ~1.29%

• Montgomery County: ~1.00%
  Maryland also offers credits for seniors, veterans, and energy efficiency upgrades.

Virginia

• Generally lower rates (average ~0.80%)

• Arlington and Fairfax counties have slightly higher values, offsetting lower rates

How It Affects Your Mortgage
Most lenders escrow property taxes — meaning they divide your annual bill into 12 parts and add it to your monthly payment.
A home in DC and a similar one in PG County could have a $300/month difference in taxes!

Final Tip:
Ask your lender and agent for a full tax estimate on any home you’re serious about — don’t rely on Zillow.