Charm City hasn’t felt especially charming to homeowners in recent years.

With an effective property tax rate of around 2.25 percent – roughly double New York City’s residential rate – Baltimore has some of the highest big-city housing taxes in America.

Critics say it makes homes harder to sell, discourages investment and punishes residents who stay put.

Now city mayor Brandon Scott says the city is finally moving to ease the strain. ‘We know that our property tax rate can be a challenge for homeowners,’ he said, explaining that is why property tax rate will fall to $2 per $100 of assessed value.

Rather than slashing the headline rate, the plan focuses on expanding and tweaking existing credits so homeowners pay less in practice.

Officials plan to strengthen a rule that limits how much a homeowner’s tax bill can jump when property values rise, expand relief for people who live in their homes full-time, and sign up more residents for state programs that cut tax bills.

The relief is aimed squarely at people who actually live in their homes  not outside investors.

‘A lot of landlords don’t live in the city, or even the state, and don’t care about actually investing in the neighborhoods,’ Mike Kantzer, a Baltimore homeowner and community farmer, told the Daily Mail.

Brandon Scott, mayor of Baltimore, Maryland, speaks during a news conference in 2022. The mayor announced new initiatives to lower the property tax burden in his city on Monday.

Colorful restaurant in Little Italy district in downtown Baltimore, Maryland

Saint Paul Street with view of downtown Baltimore.

‘These changes are great; they’re specifically targeted at owners who actually live in the house, and they especially make it easier to keep a home that you already own, even if you’ve hit a rough patch,’ Kantzer added.

The overhaul also takes aim at one of Baltimore’s most controversial practices: tax sales.

Under current rules, homes that fall behind on property taxes can be auctioned for the amount owed. Any surplus technically goes back to the former owner — but in reality, developers can scoop up properties cheaply and resell them at far higher prices.

City officials now want to auction delinquent homes closer to their assessed value, a move supporters say would preserve more wealth for struggling homeowners and curb speculative buying.

‘For too long, Baltimore homeowners have lost their homes over small tax bills and received far less than the value of those homes,’ said Vicki Schultz, executive director of Maryland Legal Aid.

Daryl Fairweather, chief economist at Redfin, said the tax credit strategy could provide meaningful relief – but it comes with trade-offs.

She said the flexible assessment cap means homeowners in fast-appreciating neighborhoods may still see higher bills, while those in stagnant or declining areas are less likely to face big increases.

‘The tradeoff is that it could slow down redevelopment of distressed homes that can be a blight on neighborhoods,’ Fairweather said.

Kelly Harris, a Maryland-based Realtor and real estate investor, has witnessed the city’s evolution up close

Row houses in Baltimore in spring.

The city is also exploring new payment plans to help struggling owners avoid losing their homes in the first place.

The new proposals come at a time when Baltimore’s fortunes are shifting.

Homicides fell sharply in 2025, leading to a rise in home prices in Baltimore. The median sale price currently sits at around $218,000 – up 3.8 percent year-over-year, according to Redfin.

‘Baltimore’s housing market has grown steadily over the last three to five years, with average home prices increasing nearly 20 to 30 percent in key neighborhoods,’ Kelly Harris, a Maryland-based Realtor and real estate investor, said last year.

Still, not everyone is convinced credits are the right answer.

‘Using tax credits doesn’t make the city desirable to invest in, getting the real rate down does,’ wrote one local Reddit.

Fairweather acknowledged the relief will not do much for investors – but said that is partly the point.

Overall, she said, the changes are likely to benefit middle-class homeowners and upper-middle-class households the most, while offering additional protection for lower-income residents who qualify for state programs.

‘There’s a common bumper sticker here: Baltimore: actually, I like it,’ Kantzer said.

 ‘We know our city has issues, but we love it anyway, and we want to do the work to make it better. It’s good to see the city love us back.’

[H/T Daily Mail]