Preston, Maryland Property Taxes
The median property tax rate in Preston, MD is 1.10%, higher than both the national median of 0.99% and Maryland's state median of 1.06%. With a median home value of $162,350 in Preston, the typical annual property tax bill is $1,787, which surpasses the national median of $2,690. Property taxes in Preston are calculated based on the tax assessed value, which is often lower than the market value due to exemptions like primary residence and agricultural exemptions. Understanding Preston'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 Preston or another part of Dorchester County, understanding the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Preston, Maryland Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
1.1%
Estimate Property Tax Bill
$1,786
$1,657
Ownwell’s Preston Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Preston with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Preston 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 Preston, Maryland
Property taxes in Preston, Maryland, are vital in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Preston is 1.10%, higher than both the Maryland state median and the U.S. national median of 0.99%. Local government entities within Preston set these rates annually, and they can vary significantly across different neighborhoods. Each year, Preston 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 Preston's effective property tax rate to other counties in Maryland and the national median. For comparison, the 21655 zip code has the highest median property tax rate of 1.10%, while the 21655 zip code also has the lowest median tax rate of 1.10%. Understanding how these cities compare with Preston provides valuable insights into the varying tax landscape across Dorchester County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Preston Tax Rate
1.10%
Average Dorchester County Tax Rate
1.17%
Average Maryland Tax Rate
1.06%
Average United States Tax Rate
0.99%
Property Tax Rates Across Preston, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 21655 | 1.09% | 1.09% | 1.10% | 1.10% | 1.11% |
Source: Ownwell
Property Tax Assessment Values Across Preston, Maryland
In Preston, 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 Dorchester County Assessment Office 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 Preston, 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 Preston helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. In Preston, the zip code with the highest median tax bill is 21655, with a median tax bill of $1,787.
Average Preston Assessed Value
$162,350
Average Dorchester County Assessed Value
$163,800
Average Maryland Assessed Value
$317,700
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Preston, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 21655 | $134,950 | $147,150 | $162,350 | $207,925 | $312,350 |
Source: Ownwell
Property Tax Bills Across Preston, Maryland
In Preston, located in Dorchester County, MD, property tax bills are calculated based on the assessed value of your home. The county’s tax rate is applied to this assessed value to determine your annual property tax bill. For instance, with a median home price of $162,350, homeowners can expect varying tax bills depending on specific assessments and exemptions. The 25th percentile tax bill is around $1,624, while the 75th percentile reaches $2,266. For those in the 90th percentile, the tax bill can climb to $3,390. Several factors influence these calculations, including the market value of the property, local tax rates, and any applicable exemptions or deductions. Compared to the national median property tax rate of 0.99%, Preston’s tax rates can significantly impact homeowners, especially when considering the highest and lowest median tax bills in the area, both recorded at $1,787 in the 21655 zip code. Understanding these elements helps homeowners anticipate their financial obligations and plan accordingly.
Average Preston Tax Bill
$1,787
Average Dorchester County Tax Bill
$2,036
Average Maryland Tax Bill
$3,419
Average United States Tax Bill
$2,690
Property Tax Bills Across Preston, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 21655 | $1,494 | $1,624 | $1,787 | $2,266 | $3,390 |
Source: Ownwell