Potomac, Maryland Property Taxes
The median property tax rate in Potomac, MD is 1.09%, considerably higher than both the national median of 0.99% and the Maryland state median of 1.06%. With the median home value in Potomac at $968,700, the typical annual property tax bill reaches $10,130, exceeding the national median of $2,690. Property taxes in Potomac 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 Potomac'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 Potomac 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
Potomac, Maryland Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
1.09%
Estimate Property Tax Bill
$10,559
$9,798
Ownwell’s Potomac Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Potomac with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Potomac 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 Potomac, Maryland
Property taxes in Potomac, Maryland, are essential in funding vital local services such as public schools, road maintenance, and emergency services. The median tax rate in Potomac is 1.09%, which is higher than both the Maryland state median and the U.S. national median of 0.99%. Local government entities within Potomac set these rates annually, and they can vary significantly across different neighborhoods. Each year, Potomac 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 Potomac's effective property tax rate to other areas in Maryland and the national median. For comparison, the zip code 20850 has the highest median property tax rate of 1.14%, while zip code 20854 has the lowest median tax rate of 1.09%. Understanding how these areas compare with Potomac 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 Potomac Tax Rate
1.09%
Average Montgomery County Tax Rate
1.11%
Average Maryland Tax Rate
1.06%
Average United States Tax Rate
0.99%
Property Tax Rates Across Potomac, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 20850 | 1.09% | 1.11% | 1.14% | 1.16% | 1.23% |
| 20854 | 0.92% | 1.00% | 1.09% | 1.15% | 1.32% |
| 20859 | N/A | N/A | N/A | N/A | N/A |
| 20874 | N/A | N/A | N/A | N/A | N/A |
Source: Ownwell
Property Tax Assessment Values Across Potomac, Maryland
In Potomac, 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 Potomac, 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 Potomac is $968,700. The median tax bill ranges significantly, with the 25th percentile at $8,183 and the 75th percentile at $13,838. The highest median tax bill is $12,781 in the 20850 zip code, while the lowest is $10,125 in the 20854 zip code. By understanding these valuation concepts, property owners can better navigate their tax responsibilities and identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden.
Average Potomac Assessed Value
$968,700
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 Potomac, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 20850 | $914,150 | $987,925 | $1,111,450 | $1,383,050 | $1,609,770 |
| 20854 | $598,400 | $700,000 | $968,400 | $1,324,100 | $1,760,180 |
| 20859 | N/A | N/A | N/A | N/A | N/A |
| 20874 | N/A | N/A | N/A | N/A | N/A |
Source: Ownwell
Property Tax Bills Across Potomac, Maryland
In Potomac, Montgomery County, MD, property tax bills are calculated based on the assessed value of the property. The assessed value is determined by the local tax assessor and reflects the market value of the home. For instance, with a median home price of $968,700, homeowners can expect their property tax bill to be influenced significantly by this valuation. The property tax rate in Montgomery County is applied to the assessed value, resulting in the final tax bill. Various factors, such as changes in market conditions and property improvements, can affect the assessed value, thereby impacting the tax bill. Homeowners in Potomac typically see a range of property tax bills, with the 25th percentile at $8,183 and the 75th percentile at $13,838. The highest median tax bill in the region is $12,781, while the lowest is $10,125. Comparatively, these figures are higher than the national median property tax rate of 0.99%, indicating that Potomac homeowners face a relatively substantial property tax burden. This can influence decisions on homeownership and property investments in the area.
Average Potomac Tax Bill
$10,130
Average Montgomery County Tax Bill
$5,416
Average Maryland Tax Bill
$3,419
Average United States Tax Bill
$2,690
Property Tax Bills Across Potomac, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 20850 | $10,252 | $11,624 | $12,781 | $15,573 | $16,602 |
| 20854 | $6,459 | $8,182 | $10,125 | $13,835 | $18,561 |
| 20859 | N/A | N/A | N/A | N/A | N/A |
| 20874 | N/A | N/A | N/A | N/A | N/A |
Source: Ownwell