Heirs Living in a Late Parent's Home Can Now Keep Its Property Tax Credits for Up to Three Years, With an Affidavit

BALTIMORE, MARYLAND — An heir who lives in the home of a Maryland homeowner who has died can now keep, or apply for, the home's Homeowners' and Homestead property tax credits for up to three taxable years while the estate goes through probate, under House Bill 1148 of 2026.

The benefit is not automatic, and heirs must meet the eligibility requirements for each credit. To get the credits before the deed is transferred, the law says an heir must complete the regular credit application, sign a sworn Affidavit for Continued Tax Credits for Heirs on the department's form and attach a copy of the deceased homeowner's death certificate. The form, posted on the department's Homeowners' Tax Credit page, covers the July 1, 2026, to June 30, 2027, credit year. The heir signs it under penalty of perjury and must fill in every blank. A legal representative or the estate's court-appointed personal representative may complete it if the heir cannot.

The Homeowners' Tax Credit itself has an Oct. 1 deadline each year, and the department advises applying by April 15 so the credit appears on the tax bill. The law also lets the department accept an heir's application for certain prior taxable years, according to the legislature's fiscal note. Heirs unsure of their timing can call the program at 410-767-4433.

Gov. Wes Moore signed the bill as Chapter 718. Its tax credit provisions took effect June 1, 2026.

A second part, taking effect July 1, 2027, creates a Legacy Protection Program in the department. It is funded with $250,000 a year from the state and $500,000 a year from the counties. The program will offer free legal help to heirs whose home is valued at $450,000 or less in state records so they can become the owner of record, along with grants toward probate fees, inheritance taxes and other costs. The state's tax sale ombudsman may favor low-income, elderly and disabled heirs for those grants. Heirs who contact the state's tax sale ombudsman will have their homes referred to the county for its list of properties held out of tax sale.