Maryland’s 2026 Group 2 Reassessment, Explained
If you own a home in Maryland and opened a thick envelope from the State Department of Assessments and Taxation (SDAT), you are not alone. SDAT’s 2026 “Group 2” reassessment covered 789,178 residential and commercial properties statewide. Notices went out around the turn of the year, and the headline number was hard to miss: a 12.7% statewide average increase in full cash value.
Residential properties rose about 13.2% on average; commercial rose about 11%. Roughly 92.7% of Group 2 residential properties saw an increase. Every county and Baltimore City posted gains.
That figure is useful for taxes. It is a poor guide for what your house will sell for in today’s market.
Assessment Value vs. Sale Price: They Are Not the Same Thing
Maryland assessments estimate fair market value for tax purposes, using sales, cost, and (for income properties) income approaches. Your notice’s “new fair market value” is the key appraisal figure—but it is still an estimate built for the tax system, not a buyer’s offer.
A sale price reflects what a specific buyer will pay now, after seeing condition, repairs, location quirks, financing costs, and competition. In fall 2026, that buyer is often dealing with mortgage rates near 7.4% and a market that is loosening toward buyers nationally. Your SDAT value may have been built from sales that look stronger than today’s negotiated contracts.
Using your assessment notice as your list price is one of the fastest ways to overprice a home that needs work—or to sit on the market while carrying costs pile up.
How the Three-Year Phase-In Works
Under Maryland law, an increase in assessed value is phased in evenly over three tax years. A decrease is applied in full for the 2026 tax year.
SDAT’s homeowner guide uses this example: if the old appraisal was $100,000 and the new one is $130,000, taxable value phases in as $110,000 in year one, $120,000 in year two, and $130,000 in year three.
Your bill also depends on local tax rates and credits. The Homestead Tax Credit can cap how much the taxable assessment of your principal residence rises each year (state law caps that annual increase at 10%; many counties set a lower cap). Limited-income homeowners may also qualify for the Homeowners’ Property Tax Credit. Those programs affect taxes—not what a buyer will write on a contract.
County Differences Matter
The 12.7% statewide average hides big local gaps. From SDAT’s Group 2 residential tables comparing January 1, 2023 values to January 1, 2026:
| Area | Residential full cash value change |
|---|---|
| Anne Arundel County | +16.0% |
| Baltimore County | +12.4% |
| Baltimore City | +13.4% |
| Howard County | +16.8% |
| Montgomery County | +12.6% |
| Prince George’s County | +10.3% |
| Washington County | +22.8% |
| Statewide residential | +13.2% |
Growth also slowed from recent cycles. SDAT reported that the statewide increase was 20.1% in the prior reassessment year and 23.4% in 2023—so 2026’s 12.7% is a meaningful slowdown, not a crash, and still not a sale-price guarantee.
What Should You Do With Your Notice?
- Read the new total fair market value first. That is the appraisal figure SDAT wants you to focus on.
- Check Homestead / Homeowners’ credit status on the notice if this is your primary home.
- Appeal only if the value looks wrong for tax purposes. SDAT generally allows an appeal within 45 days of the notice date. Bring comparable sales and condition evidence—not wishful list prices.
- If you plan to sell, get a market-based number. Recent sold comps, current active competition, and your home’s condition matter more than the reassessment letter.
Selling When Taxes Are Rising and Buyers Are Choosier
Higher assessments can raise holding costs just as the broader housing market gives buyers more leverage. That combination is especially hard if you are:
- Carrying a vacant or inherited property
- Behind on taxes, HOA dues, or repairs
- Facing a job move, divorce, or probate timeline
- Unwilling to price for months of showings and concessions
In those situations, a traditional listing priced off your assessment notice can leave you paying more while waiting for a financed buyer who may never clear underwriting. A cash sale lets you lock in a real sale price, skip repairs, and close on a date you choose.
Get a Cash Offer Based on Your Home—Not Your Tax Notice
Executive Pro Home Buyers purchases Maryland houses as-is. We look at the property and your situation—not SDAT’s three-year cycle—and give you a straightforward cash offer, usually within 24 hours. No commissions. No obligatory repairs. No waiting on a buyer’s loan.
Sources: Maryland SDAT 2026 Group 2 reassessment press release and residential/commercial value tables; SDAT Homeowners Guide (assessment phase-in example); Maryland Tax-Property Article §8-103 (phased-in value).