Rewarded for Staying Put

Thirty years in the same house. A life built, memories made, roots grown deep in Howard County soil. Now you’ve decided to stay right where you are. Why does that choice feel so expensive? Rising assessments and property taxes often make longtime homeowners feel as though the reward for loyalty is a higher property tax bill. However, there is good news: Howard County offers a tax credit that rewards loyalty, giving many of the county’s seniors real relief for staying in their homes.

Meet the Aging in Place Tax Credit

The Aging in Place Tax Credit allows certain Howard County residents to receive a tax credit equal to 20% of their county tax, up to $650,000 of their primary residence’s assessed value. The credit comes straight off your Howard County property tax bill as a direct reduction of what you owe.

In 2017, the Maryland General Assembly authorized counties to establish property tax credits designed to keep longtime and older residents from being taxed out of their homes. Howard County took them up on it.

Real World Example

Imagine your home is assessed at $600,000, and your Howard County property tax is $6,000 for the year. If you qualify for the credit, a 20% credit could reduce your county tax by $1,200, bringing that portion of your tax bill down to $4,800.

Who Qualifies

To be eligible for the tax credit, Howard County residents must meet the following criteria:

• Be age 65+ and have owned and lived in the same dwelling for at least 30 years as of June 30^th of the tax year, or
• Be age 65+ and a retired service member with 20+ years of active duty (or their non-remarried surviving spouse), or
• Be an active duty, retired, or honorably discharged service members who meet certain disability criteria (or their non-remarried surviving spouse)

There are also two noteworthy items about this tax credit. First, there is no income or net worth cap for eligibility, unlike other tax credits and deductions, such as the new enhanced senior deduction for federal taxes. Another standout item is that, effective December 9th, 2025, the Howard County Council extended the period during which residents may take this credit from 8 to 10 years, allowing for additional tax relief.

Please note that you cannot claim the Howard County Senior Tax Credit and the Howard County Aging in Place Tax Credit at the same time.

Ready to Apply? Here’s What You’ll Need

Qualifying is only half the process. Applying requires some paperwork, but it is manageable if you plan ahead. Applications become available through the Howard County Department of Finance each spring for the upcoming tax year. You’ll need documentation proving your age, how long you’ve lived in and owned the home, and, if applicable, your military service record or disability rating.

Timing matters here. The deadline generally falls around October 1st for the following tax year, and there’s no retroactive option if you miss it. Mark your calendar early rather than scrambling in the fall. Once you’re approved, the process gets easier. Each year, the county requires an annual verification to keep the credit active, with recertification notices going out each spring. If you’re unsure whether you qualify or which documents to gather, the Howard County Department of Finance can walk you through the details of your specific situation.

Why It Was Implemented

The credit was implemented to incentivize longtime residents of Howard County, Maryland, to stay in their homes rather than move out of the county or into a separate living facility. Many residents live on fixed or limited incomes, and rising property tax assessments on their homes can make it difficult to remain where they’ve lived for years. The county implemented the credit to address this, providing long-term residents with some tax relief so they can age in place more comfortably.  

Make Your Loyalty Pay Off

If you qualify and are not claiming this credit, you’re leaving money on the table every year. But the bigger lesson is this: tax credits and deductions often don’t advertise themselves. The Aging in Place Tax Credit exists alongside state-level credits and federal provisions like the newly enhanced senior deduction. The rules for each are different enough that it’s easy to miss one you actually qualify for or misapply one you don’t.

A conversation with a tax preparer or financial planner who knows the local landscape can make sure you’re capturing every credit you’re entitled to, and that it all fits into your broader retirement and estate plan, not just this year’s tax bill.

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