Property values in Maryland have jumped on average by double digits, according to state tax officials, a sign of the market’s strong pulse in a competitive housing economy, but a sure blow to homeowners facing higher property tax bills this year.

In Maryland, more than 2 million property accounts are split into three groups, with each group appraised on a rotating, three-year basis. Since the 712,782 “Group 1″ properties were last assessed in 2022, statewide overall property values have increased by 20%, the Maryland Department of Assessments and Taxation said in a Monday news release.

It’s the largest spike among Group 1 properties since at least 2013, according to state data. The grouping includes both residential and commercial properties, the values of which have risen by 21.1% and 16.4%, respectively. Three years ago, Group 1 assessments increased 12%.

All of Maryland’s 24 jurisdictions experienced increased values, said Dan Phillips, the taxation department’s director. In a statement, he encouraged Maryland homeowners to apply for the Homestead Tax Credit if they haven’t already, which can limit an owner’s taxable assessment from rising by more than a certain percentage each year regardless of their income levels.

As assessments continue to rise, some are calling on the state to offer even more relief. In light of Maryland’s dueling housing supply and affordability challenges, Cheryl Abrams Davis, president of Maryland REALTORS, said older adults and first-time homebuyers are likely to find themselves cash-strapped.

“When property taxes go up, the mortgage goes up, and not everyone can cover all those expenses,” Abrams Davis said. “We have to help people who are currently in their homes keep their homes.”

Abrams Davis suggested the state review its tax credit programs and ensure they have been adjusted for inflation. She also said state and local lawmakers could do more to incentivize housing creation — especially affordable housing — and loosen zoning restrictions that prevent denser and taller homebuilding.

In addition to the Homestead Tax Credit, Marylanders can apply for the Homeowners’ Property Tax Credit program, which sets a limit on the amount of property taxes they are responsible for based on their incomes.

Marylanders broadly support adding to the housing supply and lowering housing costs, according to 2024 polling, but lawmakers and developers who have attempted to push through more building have at times faced opposition from zoning boards, neighborhood groups and fellow legislators concerned about specific housing proposals.

Maryland Gov. Wes Moore’s administration lobbied successfully last year for three ambitious housing bills in the 2024 Maryland General Assembly, and they are expected to put forth additional legislation this year related to boosting the housing supply.

The next session, which runs for 90 days, starts Jan. 8.

Residential property values in Somerset (37.7%), Wicomico (30.6%), Worcester (29.5%), Allegany (25.5%) and Garrett counties (25.4%) recorded the highest changes in market value since their last assessment, according to state data. In the commercial category, Allegany (46.7%), Frederick (44.1%), Cecil (29.9%), Talbot (23%) and Dorchester (22.4%) counties saw the highest spikes.

The increases could reflect higher demand for housing in those areas or an increase in home renovations completed since the start of the coronavirus pandemic. It may also indicate heavy sales activity in certain areas and higher premiums on available land.

In the Baltimore metro area, residential properties in Baltimore County (25.3%) experienced the highest change in value, followed by Anne Arundel (21.9%), Carroll (21.5%) Howard (21.3%), Baltimore City (21%) and Harford counties (20.3%). Anne Arundel County saw the highest change in commercial property values (22.3%), followed by Carroll (21%), Baltimore (15.9%), Harford (15%), Howard (12.5%) and Baltimore City (11%).

Counties and municipalities are the primary recipients of property tax revenues, and they use those funds to make up their annual budgets along with income taxes. Each one sets its own property assessment cap, with ranges from 0% to 10%. Statewide legislation caps the increase at no more than 10% per year.

The Maryland Department of Assessments and Taxation’s figures were based on 60,761 sales that occurred within Group 1 over the last three years. Of those, 96.9% of the residential properties saw an increase in property value, according to the state. Tax increases are phased in equally over three years, while decreases are fully implemented during the 2025 tax year.

Notices to Group 1 property owners were sent on Monday. Homeowners have 45 days to appeal if they think their assessed values should be higher or lower.

Last year, a printing error resulted in around 107,000 property owners not receiving written notices of their new estimated home values by a Jan. 30 deadline. State lawmakers, recognizing the gravity of the problem, intervened and extended the deadline, giving people more time to review the value and appeal. The director of the agency left the department after the incident and has since been replaced by Phillips.