Derwood, Maryland Property Taxes
The median property tax rate in Derwood, MD is 1.11%, considerably higher than both the national median of 0.99% and the Maryland state median of 1.06%. With the median home value in Derwood, the typical annual property tax bill reaches $5,499, exceeding the national median of $2,690. Property taxes in Derwood are calculated based on the tax assessed value, which typically falls below the market value due to various exemptions like the primary residence and agricultural exemptions. Understanding Derwood's property tax system, exploring available exemptions, and identifying opportunities for reductions can lead to significant annual savings. Whether you're in the heart of Derwood or another part of the city, understanding the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Derwood, Maryland Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
1.11%
Estimate Property Tax Bill
$5,319
Ownwell’s Derwood Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Derwood with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Derwood to estimate your property tax bill. This insightful tool helps you understand potential tax liabilities. If you’re interested in seeing trends on a neighborhood level, scroll down to find more localized information. Your property’s assessed value is the value assigned by the county for property tax calculations, accounting for any exemptions that may apply.
Property Tax Rates Across Derwood, Maryland
Property taxes in Derwood, Maryland, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Derwood is 1.11%, which is higher than the U.S. national median of 0.99%. Local government entities within Derwood set these rates annually, and they can vary significantly across different neighborhoods. Each year, Derwood estimates its required budget to maintain services for the upcoming fiscal year, then divides this budget by the total value of all taxable property within the jurisdiction to calculate the property tax rate. While tax rates and budgets are influenced by laws and voter input, this calculation forms the basis of setting property tax rates. The data below compares Derwood's effective property tax rate to other areas in Montgomery County and the national median. For comparison, the 20855 zip code has the same median property tax rate of 1.11%. Understanding how these areas compare with Derwood provides valuable insights into the varying tax landscape across Montgomery County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Derwood Tax Rate
1.11%
Average Montgomery County Tax Rate
1.11%
Average Maryland Tax Rate
1.06%
Average United States Tax Rate
0.99%
Property Tax Rates Across Derwood, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 20855 | 0.93% | 1.05% | 1.11% | 1.20% | 1.38% |
Source: Ownwell
Property Tax Assessment Values Across Derwood, Maryland
In Derwood, Maryland, understanding the difference between "market value" and "assessed value" is crucial for comprehending property taxes. The market value is the price a willing buyer would pay a willing seller in an open and competitive market, influenced by factors like location, property condition, and economic trends. This value is estimated by the Montgomery County Appraisal District for tax purposes. In contrast, the assessed value is the market value minus any applicable exemptions or limits based on local laws and available programs. The assessed value is then used to calculate your property taxes by multiplying it by the combined tax rates of all relevant taxing entities. In Derwood, assessment notices are typically mailed out in the spring, usually by mid-April. These notices provide homeowners with both the market and assessed values, along with an estimate of the annual property tax bill. By understanding the distinction between these valuation concepts, property owners can better navigate their tax responsibilities and comprehend how their property taxes are determined. Being aware of these valuation processes in Derwood helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. Notably, the highest and lowest median tax bills in Derwood both stand at $5,499, specifically in the 20855 zip code.
Average Derwood Assessed Value
$479,200
Average Montgomery County Assessed Value
$471,000
Average Maryland Assessed Value
$317,700
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Derwood, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 20855 | $300,000 | $392,900 | $479,200 | $620,000 | $762,680 |
Source: Ownwell
Property Tax Bills Across Derwood, Maryland
In Derwood, located in Montgomery County, MD, property tax bills are calculated based on the assessed value of a home and the local tax rate. The median home price here stands at $479,200. The tax bill is determined by multiplying the assessed value by the local property tax rate, which varies within the county. Factors such as property type, location, and any applicable exemptions also influence the final tax bill. Homeowners in Derwood typically see tax bills ranging from $4,340 at the 25th percentile to $8,543 at the 90th percentile. This wide range indicates how property values and specific local rates impact individual tax liabilities. Compared to the national median property tax rate of 0.99%, Montgomery County's property tax rates can result in relatively high tax bills. For instance, the median tax bill in the 20855 zip code is $5,499, which reflects the higher end of tax burdens in the area. This tax burden can significantly affect homeowners' annual financial planning and overall housing affordability.
Average Derwood Tax Bill
$5,499
Average Montgomery County Tax Bill
$5,416
Average Maryland Tax Bill
$3,419
Average United States Tax Bill
$2,690
Property Tax Bills Across Derwood, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 20855 | $3,055 | $4,340 | $5,499 | $7,044 | $8,543 |
Source: Ownwell