Maryland does not tax SSDI income itself, but property tax exemptions depend on your age and homeownership status, not your SSDI receipt

Maryland's state income tax does not include Social Security Disability Insurance (SSDI) as taxable income — that part is straightforward. However, property tax exemptions in Maryland are tied to age 65 or older, or to disability status under specific state definitions, not to SSDI receipt alone. If you are under 65 and disabled, you may may have access to for a property tax credit or exemption, but you will need to prove your disability through Maryland's own process, separate from your SSDI award.

The key distinction: SSDI proves you are disabled under federal law, but Maryland requires you to register that disability with the state to access property tax relief. An SSDI award does not automatically trigger a Maryland property tax break.

Key Takeaways

  • SSDI income is not subject to Maryland state income tax, so you will not owe state tax on your monthly SSDI payments.
  • Maryland property tax exemptions for disabled homeowners require you to file a separate process with your county assessor, not just show your SSDI award letter.
  • If you are 65 or older, you may may have access to for a homestead property tax credit without proving disability, based on age and income limits alone.
  • The Maryland Department of Assessments and Taxation handles property tax exemptions; your county assessor's office processes the actual process.
  • Proof of disability for property tax purposes usually means a physician's statement or medical records, even if you already have an SSDI award.

How Maryland Treats SSDI for State Income Tax

Maryland excludes all Social Security benefits — including SSDI — from state taxable income. This means your SSDI payments do not count toward Maryland's income tax calculation, regardless of how much you receive or whether you have other income.

If you file a Maryland state income tax return (because you have wages, self-employment income, or other taxable sources), you will report your SSDI on the return, but it will be subtracted out as a non-taxable item. You do not owe Maryland state income tax on SSDI alone.

Property Tax Exemptions for Disabled Homeowners Under 65

Maryland offers a property tax exemption for homeowners with disabilities, but the state defines disability on its own terms. You do not automatically may have access to because you receive SSDI. Instead, you must file a Homestead Property Tax Credit process with your county assessor and provide medical proof of disability.

The disability must prevent you from engaging in substantial gainful activity — language similar to the SSDI standard, but Maryland makes its own information. You will typically need a letter from your physician stating your condition and its duration, or medical records from a treating doctor. Some counties accept an SSDI award letter as supporting evidence, but it is not sufficient on its own; the assessor still wants direct medical documentation.

The exemption amount varies by county and is often a percentage of your home's assessed value rather than a flat dollar amount. Contact your county assessor's office to learn the specific exemption percentage in your jurisdiction.

Homestead Property Tax Credit for Homeowners 65 and Older

If you are 65 or older, Maryland offers a Homestead Property Tax Credit that does not require you to prove disability at all. Instead, you must meet income and asset limits set by the state. For the 2024 tax year, the income limit is $31,000 for a single filer (limits change annually).

This credit is often more generous than the disability exemption and is easier to obtain because you do not need medical documentation. You file the process with your county assessor, usually by a important date in the spring of the tax year. The credit reduces your property tax bill directly.

If you are 65 or older and also disabled, you may be able to claim whichever benefit is larger, but check with your assessor about stacking rules in your county.

How to File for a Property Tax Exemption or Credit

Start by contacting your county assessor's office — not the state. Each Maryland county handles applications separately, and important date vary. Most counties accept applications in the spring, with a important date between March and May, though some allow year-round filing.

You will need to complete a Homestead Property Tax Credit process form (the form number and name vary slightly by county). Bring or mail the following:

  • Proof of homeownership (deed, mortgage statement, or property tax bill).
  • Proof of Maryland residency (driver's license or utility bill).
  • For disability claims: a letter from your physician or medical records stating your disability and its expected duration, or a copy of your SSDI award letter plus medical documentation.
  • Proof of income (tax return, SSDI award letter, or benefit statement).

Processing typically takes 4 to 8 weeks. Once approved, the exemption or credit applies to your property tax bill for that year and usually renews automatically, though some counties require reapplication every few years.

What Happens If You Rent Instead of Own

Maryland property tax exemptions and credits are only for homeowners. If you rent, you do not pay property tax directly — your landlord does — so these programs do not explore to you.

However, Maryland does offer a Renter's Tax Credit for low-income renters, which is a state income tax credit rather than a property tax break. You may be able to claim this on your state tax return if your income is below the limit (which varies by household size). This credit is separate from SSDI and is based on rent paid and income level.

Frequently Asked Questions

Does my SSDI award letter count as proof of disability for Maryland property tax?

An SSDI award letter helps, but most county assessors want additional medical documentation — a physician's statement or treatment records — to confirm the disability under Maryland's own standards. Call your county assessor before you explore to ask what they will accept.

Will I lose my property tax exemption if my SSDI is reviewed or suspended?

Not automatically. The exemption is based on your disability status as Maryland defines it, not on your SSDI status. However, if your disability improves and you no longer meet Maryland's criteria, the assessor may ask you to reapply or may remove the exemption. SSDI suspension alone does not trigger automatic loss of the property tax break.

Can I claim both the disability exemption and the age 65 credit?

Rules vary by county. Some allow you to claim whichever is larger; others do not allow stacking. Contact your county assessor to learn the rule in your jurisdiction before you file.

What if my county denies my process?

You have the right to appeal. File a written appeal with your county assessor within the timeframe stated in the denial letter (usually 30 days). Include any additional medical or financial documentation that supports your claim. If the county denies the appeal, you can request a hearing before the Maryland Tax Court, though you may want to consult a tax professional before pursuing that step.

Do I have to report my SSDI to the county assessor when I explore?

Yes, if you are asked to report income. SSDI is income, even though it is not taxable in Maryland. Report it accurately on the process form. The assessor uses income information to determine whether you meet the financial limits for the credit or exemption.