Gaithersburg, Maryland Property Taxes
The median property tax rate in Gaithersburg, MD is 1.18%, considerably higher than both the national median of 0.99% and the Maryland state median of 1.06%. With the median home value in Gaithersburg at $378,700, the typical annual property tax bill reaches $4,682, exceeding the national median of $2,690. Property taxes in Gaithersburg 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 Gaithersburg'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 Gaithersburg 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
Gaithersburg, Maryland Property Tax Bill Calculator
$100,000
$2,500,000
$5,000,000
Average Tax Rate
1.06%
Estimate Property Tax Bill
$2,120
Ownwell’s Gaithersburg Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Gaithersburg with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Gaithersburg 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 Gaithersburg, Maryland
Property taxes in Gaithersburg, Maryland, are crucial for funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Gaithersburg is 1.18%, higher than both the Maryland state median and the U.S. national median of 0.99%. Local government entities within Gaithersburg set these rates annually, and they can vary significantly across different neighborhoods. Each year, Gaithersburg 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 Gaithersburg's effective property tax rate to other areas in Montgomery County and the national median. For comparison, the 20886 zip code has the highest median property tax rate of 1.27%, while the 20879 zip code has the lowest median tax rate of 1.12%. Understanding how these cities compare with Gaithersburg 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 Gaithersburg Tax Rate
1.18%
Average Montgomery County Tax Rate
1.11%
Average Maryland Tax Rate
1.06%
Average United States Tax Rate
0.99%
Property Tax Rates Across Gaithersburg, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 20866 | N/A | N/A | N/A | N/A | N/A |
| 20874 | N/A | N/A | N/A | N/A | N/A |
| 20876 | N/A | N/A | N/A | N/A | N/A |
| 20877 | 1.00% | 1.09% | 1.21% | 1.40% | 1.57% |
| 20878 | 1.03% | 1.11% | 1.22% | 1.33% | 1.46% |
| 20879 | 0.94% | 1.05% | 1.12% | 1.36% | 1.52% |
| 20882 | 0.97% | 1.06% | 1.13% | 1.16% | 1.36% |
| 20886 | 1.01% | 1.02% | 1.27% | 1.52% | 1.54% |
Source: Ownwell
Property Tax Assessment Values Across Gaithersburg, Maryland
In Gaithersburg, 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 Gaithersburg, 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. The median home price in Gaithersburg is $378,700, with tax bills ranging from $3,300 at the 25th percentile to $8,794 at the 90th percentile. The highest median tax bill is found in the 20882 zip code at $6,238, while the lowest median tax bill is in the 20886 zip code at $3,185. 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 helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden.
Property Tax Assessment Values Across Gaithersburg, Maryland
Source: Ownwell
$110,000
$614,100
$1,118,200
Average Gaithersburg Assessed Value
$378,700
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 Gaithersburg, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 20866 | N/A | N/A | N/A | N/A | N/A |
| 20874 | N/A | N/A | N/A | N/A | N/A |
| 20876 | N/A | N/A | N/A | N/A | N/A |
| 20877 | $110,000 | $254,600 | $328,800 | $412,400 | $472,180 |
| 20878 | $120,000 | $303,400 | $438,000 | $635,100 | $821,100 |
| 20879 | $125,000 | $253,725 | $308,700 | $386,275 | $482,940 |
| 20882 | $332,560 | $429,500 | $554,200 | $684,550 | $838,540 |
| 20886 | $248,280 | $256,750 | $269,400 | $276,250 | $290,500 |
Source: Ownwell
Property Tax Bills Across Gaithersburg, Maryland
In Gaithersburg, Montgomery County, MD, property tax bills are calculated based on the assessed value of a home and the applicable tax rate. The assessed value is determined by the county’s property assessment office and reflects the market value of the property. Homeowners in Gaithersburg face varying tax bills, influenced by factors such as property size, location, and improvements. The median home price in the area is $378,700, leading to a range of tax bills. For instance, the 25th percentile tax bill is approximately $3,300, while the 75th percentile tax bill is around $6,660. At the higher end, the 90th percentile tax bill can reach up to $8,794. Notably, the highest median tax bill in the region is $6,238 in the 20882 zip code, whereas the lowest median tax bill is $3,185 in the 20886 zip code. These tax bills significantly impact homeowners, as they contribute to the overall cost of owning a property in Gaithersburg, compared to the national median property tax rate of 0.99%.
Average Gaithersburg Tax Bill
$4,682
Average Montgomery County Tax Bill
$5,416
Average Maryland Tax Bill
$3,419
Average United States Tax Bill
$2,690
Property Tax Bills Across Gaithersburg, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 20866 | N/A | N/A | N/A | N/A | N/A |
| 20874 | N/A | N/A | N/A | N/A | N/A |
| 20876 | N/A | N/A | N/A | N/A | N/A |
| 20877 | $1,405 | $2,833 | $4,171 | $5,208 | $6,159 |
| 20878 | $2,109 | $3,798 | $5,517 | $7,910 | $10,172 |
| 20879 | $1,328 | $2,709 | $3,791 | $4,742 | $5,896 |
| 20882 | $3,443 | $4,757 | $6,238 | $7,992 | $9,633 |
| 20886 | $2,509 | $2,734 | $3,185 | $4,031 | $4,211 |
Source: Ownwell