Ocean City, Maryland Property Taxes
The median property tax rate in Ocean City, MD is 1.41%, considerably higher than both the national median of 0.99% and the Maryland state median of 1.06%. With the median home value in Ocean City at $246,800, the typical annual property tax bill reaches $3,308, exceeding the national median of $2,690. Property taxes in Ocean City 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 Ocean City'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 Ocean City 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
Ocean City, Maryland Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
1.41%
Estimate Property Tax Bill
$3,480
$3,229
Ownwell’s Ocean City Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Ocean City with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Ocean City 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 Ocean City, Maryland
Property taxes in Ocean City, Maryland, play a critical role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Ocean City is 1.41%, significantly higher than the U.S. national median of 0.99%. Local government entities within Ocean City set these rates annually, and they can vary significantly across different neighborhoods. Each year, Ocean City 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 Ocean City's effective property tax rate to other areas in Worcester County and the national median. For comparison, the zip code 21863 has the highest median property tax rate of 1.41%, while the zip code 21842 has the lowest median tax rate of 1.41%. Understanding how these areas compare with Ocean City provides valuable insights into the varying tax landscape across Worcester County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Ocean City Tax Rate
1.41%
Average Worcester County Tax Rate
1.41%
Average Maryland Tax Rate
1.06%
Average United States Tax Rate
0.99%
Property Tax Rates Across Ocean City, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 21842 | 1.25% | 1.41% | 1.41% | 1.41% | 1.41% |
| 21863 | 1.41% | 1.41% | 1.41% | 1.41% | 1.41% |
Source: Ownwell
Property Tax Assessment Values Across Ocean City, Maryland
In Ocean City, 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 Worcester 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 Ocean City, 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. For instance, the highest median tax bill in Ocean City is $3,308 in the 21842 zip code, while the lowest is $2,229 in the 21863 zip code. Being aware of these valuation processes helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden.
Average Ocean City Assessed Value
$246,800
Average Worcester County Assessed Value
$251,400
Average Maryland Assessed Value
$317,700
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Ocean City, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 21842 | $120,100 | $171,300 | $246,800 | $351,600 | $498,300 |
| 21863 | $158,100 | $158,100 | $158,100 | $158,100 | $158,100 |
Source: Ownwell
Property Tax Bills Across Ocean City, Maryland
In Ocean City, Worcester County, Maryland, property tax bills are calculated based on the assessed value of a home. The local government assesses properties to determine their value, which is then multiplied by the local tax rate to calculate the annual property tax bill. Factors considered in this assessment include the size, location, and condition of the property, as well as market trends and recent sales in the area. Homeowners in Ocean City experience varying tax bills depending on their property's assessed value. For instance, the tax bill at the 25th percentile is approximately $2,339, while at the 75th percentile, it reaches around $4,681. The highest median tax bill in the area is $3,308, found in the 21842 zip code, while the lowest is $2,229 in the 21863 zip code. These tax bills can significantly impact homeowners, influencing their overall housing costs and financial planning. Compared to the national median property tax rate of 0.99%, Ocean City's tax rates reflect the unique economic conditions of the region.
Average Ocean City Tax Bill
$3,308
Average Worcester County Tax Bill
$2,901
Average Maryland Tax Bill
$3,419
Average United States Tax Bill
$2,690
Property Tax Bills Across Ocean City, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 21842 | $1,680 | $2,339 | $3,308 | $4,681 | $6,410 |
| 21863 | $2,229 | $2,229 | $2,229 | $2,229 | $2,229 |
Source: Ownwell