Maryland Homeowner Protection and Homestead Tax Credit Portability Act of 2026

HB 1273 (Maryland Homeowner Protection and Homestead Tax Credit Portability Act of 2026) modifies Maryland's homestead tax credit system by reducing the maximum credit percentage from 110% to 105% for state and bicounty property taxes. It creates a new "homestead credit portability" feature allowing homeowners who move to a new residence to carry forward a portion of their previous home's tax credit. The portability adjustment calculates a credit based on the difference in taxable assessments between the previous and new dwelling, capped at $500,000 of the new property's assessment. This bill directly affects homeowners who relocate within Maryland and change their primary residence.