Baltimore council questions why rising revenues have not lowered property taxes

Baltimore City Council opened budget hearings by pressing a basic question that still has not gone away, why a city taking in more money has kept the real property tax rate at $2.248 per $100 of assessed value. Mayor Brandon Scott’s spending plan, now under review in a six-day process, comes as homeowners and business owners continue to absorb one of the region’s heavier tax burdens.

For owner-occupied homes, city finance materials put the effective rate at $2.048 per $100 of assessed value. Scott said on Feb. 9 that his administration was pursuing property tax affordability initiatives and wanted that homeowner rate pushed below $2.00, eventually to $1.99. The administration has framed that goal as part of a broader housing strategy that tries to lower the tax burden without cutting city services.

The relief proposals on the table are aimed most directly at homeowners, especially those under strain. One piece would raise the minimum bid in tax sale cases to assessed value. Another would create payment plans for residents in danger of tax sale, a change Scott described as a first in city history and one being developed with Maryland Legal Aid. Baltimore also opened enrollment for its new Residential Property Tax Payment Plan Program on April 28 and kept it open through May 12.

The budget numbers themselves explain why the issue has sharpened. City materials show Baltimore’s Fiscal 2026 adopted budget at $4.63 billion, up $420.1 million, or 9.98%, from Fiscal 2025. That increase has not translated into a lower property-tax bill for most owners, and council scrutiny has intensified as residents raise concerns about taxes and fees. A recent UMBC poll cited in local coverage found 71% of Baltimore residents viewed local taxes and fees as a major issue.

The hearings are part of the city’s annual budget process, which runs through Finance and Budget & Appropriations Committee review before adoption. That process is now testing how far the council wants to push for faster tax relief, and whether the administration’s phased approach is enough for homeowners in neighborhoods from East Baltimore to West Baltimore who have seen revenue growth on paper but no break in their property-tax bill. The city’s broader housing tools, including the City-Wide Affordable Housing TIF district signed into law on Dec. 3, 2024, show how central tax policy has become to Baltimore’s effort to balance development, affordability and basic city services.