

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
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Property tax rate: ~0.85%
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Lower rate, but higher home prices
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First-time buyers may qualify for the Homestead Deduction (reduces assessed value by $78,700)
Maryland
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State rate + county rate (varies by jurisdiction)
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Prince George’s County: ~1.29%
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Montgomery County: ~1.00%
Maryland also offers credits for seniors, veterans, and energy efficiency upgrades.
Virginia
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Generally lower rates (average ~0.80%)
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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.
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