FY27 Property Tax Rates and Income Tax Offset Credit
Montgomery County
Summary
The council set FY27 property tax rates and the amount of the property tax credit for income tax offset, after eliminating a proposed income tax increase and redirecting the money to priorities like schools. The credit only helps owner-occupants, not renters.
At a glance
- Total mentions
- 3
- Last 30 days
- 0
Last discussed May 21, 2026.
Impact analysis
Holds property tax increases to the line agreed during budget deliberations; the income tax offset credit amount is set by Resolution 20-1143.
Property owners, especially those who apply for the offset credit; renters see no direct benefit from the credit.
Renters don't benefit from the credit, and any service reductions tied to forgone income tax revenue affect all residents.
Mentions & discussions (4)
Council Session - May 21, 2026
The council set FY27 property tax rates and the amount of the property tax credit for income tax offset, after eliminating a proposed income tax increase and redirecting the money to priorities like schools. The credit only helps owner-occupants, not renters.
Council Session - May 8, 2026
The Council rejected the Executive's flat 3.3% tax hike and backed a progressive income tax instead, partly because 35-40% of residents are renters who can't use the income tax offset credit. Alternative revenue scenarios get discussed May 12 before the final May 13 vote.
GO Committee Worksessions - Apr 29, 2026
The committee wants to shift how the county raises money: a lower weighted property tax rate ($1.0255 per $100) paired with a progressive income tax that charges 2.5% to lower earners and 3.3% above $150,000. Setting the income tax offset credit to zero frees roughly $50 million for capital projects. The full Council must still decide.
These Three Local EITCs Are Boosting Family Incomes at Tax Time
These Three Local EITCs Are Boosting Family Incomes at Tax Time Institute on Taxation and Economic Policy
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