Property reassessment notices are arriving across Montgomery County, and this year’s updates are bringing meaningful increases for many homeowners. The Maryland Department of Assessments and Taxation (SDAT) reassesses properties every three years, and for 2026, all Group 2 properties, which include parts of Silver Spring, Potomac, Bethesda, Wheaton, Olney, and surrounding communities saw an average value increase of 12.2%.
While statewide increases were slightly higher at 12.7%, Montgomery County still experienced notable growth: residential property values rose 12.6%, and commercial properties increased 11% on average. Put simply, most homeowners in the reassessment zone will see their assessed value, and eventually, their property taxes, rise over the next few years.
What this means in real numbers
If your home was assessed at $400,000 in 2025, the new 2026 value would be approximately $450,400. Because increases are phased in evenly over three years, your tax bill will adjust gradually. Using the county’s current tax rate, that example translates to roughly a $519 increase in annual property taxes by 2028.
Why the increases happened
After several years of rapid post-pandemic appreciation, property values across Maryland are still rising, just at a steadier pace. SDAT notes that this moderation is expected, and healthy, for long-term affordability and market stability. Statewide, roughly 87% of reassessed properties increased in value; in Montgomery County, it was 83.7%.
Check your notice and take advantage of available credits
Every reassessment notice indicates whether the property is your principal residence and includes information about the Homestead Tax Credit, which limits how much the taxable assessment can increase each year. Montgomery County uses the statewide 10% cap (except Kensington, which caps it at 5%).
Homeowners with limited incomes may also qualify for the Homeowners’ Property Tax Credit, which can significantly reduce annual tax bills.
If your new value doesn’t look right
You have the right to file an appeal within 45 days of receiving your notice. Many homeowners do, especially if they feel the assessed value doesn’t reflect market conditions, recent updates, or the home’s actual condition.
Our guidance for MoCo homeowners
As DC-area realtors who review assessments with clients every year, here’s our take:
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A higher assessment does not always equal your true market value
(SDAT uses mass-appraisal models, not individualized property analysis.) -
A rising assessed value is not necessarily a bad thing as it often reflects healthy neighborhood demand.
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Reviewing your notice with a real estate professional can help determine whether an appeal might be worthwhile.
If you received a reassessment notice and want a second opinion on whether it reflects today’s market, our team at Pearlman Meekin & Co. is always happy to help walk through it with you.
