Whether you’re looking to buy a beach place or you own real estate in Ocean City, MD, it’s beneficial to learn about property taxes and the resources available. In this blog, I'll share 7 helpful tips that will help you learn more about property taxes in Ocean City, MD and how you can better prepare yourself for owning and buying real estate here.
Quick Tip #1: Calculating Your Ocean City, MD Real Estate Taxes
If you buy or own real estate within the town of Ocean City, you’ll pay city taxes in addition to Worcester County and Maryland property taxes.
Property taxes in Ocean City, MD are calculated with a tax rate of $0.4727 per $100 of the assessed value. For example, if the State of Maryland determines the assessed value of a property is $100,000, the annual city taxes would be $472.70.
Here’s how to calculated the tax rate: Divide the Assessed Value (e.g. $100,000) by $100. You’ll get 1,000. Then, multiply the city tax rate of $0.4727 by 1,000. Your answer is $472.70.
County and State taxes are calculated similar, but at a different tax rate. Worcester County’s tax rate is $0.835 per $100 of assessed value and the State of Maryland’s tax rate is $0.112 per $100 of assessed value.
You can search real property assessments by visiting the Maryland Department of Assessments and Taxation (SDAT) website or subscribe to my MLS listing alerts here. My listing alerts give you access to the latest listing with full listing details and tax data.
Quick Tip #2: Paying Your Real Estate Taxes Online
Worcester County collects real estate taxes for Ocean City, Worcester County, and the State of Maryland. Property taxes are also collected by Worcester County for the towns of Berlin, Snow Hill, and Pocomoke. You can also search recent tax bills for a property you’re researching, or a property you own.
You can pay real estate taxes online by visiting the Worcester County Taxes Online. You can search by a property owners name or by an address too.
Quick Tip #3: Paying Property Taxes Early Saves You Money
Annual Tax bills are mailed each July. If you pay your property taxes in the month of July, a discount of 0.5% is allowed for your county taxes. If we use the same $100,000 assessed value in Quick Tip #1, your annual Worcester County taxes would be $835.00 at the county tax rate of $0.835. You would receive a $4.18 discount.
Quick Tip #4: Lowering Your Taxes After Buying Ocean City, MD Real Estate
If you buy a home or condo in Ocean City, MD, and you’re appraised value is less than the assessed value, you could apply for the assessed value to be decreased. You have a limited amount of time to apply after settlement. If the assessed value is decreased, your Ocean City, Worcester County, and Maryland property taxes will decrease.
Sometimes, the assessed value is greater than the appraised value, so there can be an opportunity to pay less taxes for a property your buying. You’ll want to work closely with a local real estate agent, so you’ll understanding all of your options for buying real estate in Maryland.
Quick Tip #5: Where You Won’t Find Ocean City, MD City Taxes?
Most of Ocean City, MD has city taxes. However, if you buy a home in West Ocean City, MD, there’s no city taxes. There are mostly single family homes in West Ocean City. West Ocean City is located on the West Side of the Route 50 Bridge. There are sections of North Ocean City, MD on the bayside that do not have city taxes as well.
Quick Tip #6: MD Non-Resident Withholding Tax
Many property owners in Ocean City are not from Maryland. If you’re not a Maryland resident, you may have to pay a Non Resident Withholding Tax to the State of Maryland.
For a non-resident individual, the tax payment is calculated at 7.5% of the total property sale payment made to the individual. A nonresident entity must make a tax payment calculated at 8.25%. It’s recommended to discuss non-resident transfer taxes with an accountant or tax attorney. There are possible deductions that may be lower the amount you’ll need to pay.
Since it’s common for Ocean City, MD real estate transaction to have a non-resident involved, many local real estate attorneys are familiar with Maryland’s applications. It can be help to working with a real estate attorney familiar with MD Non Resident Transfer Taxes. For more information on MD Non-Resident Withholding Tax, visit Maryland's website, speak to an experienced accountant or attorney.
Quick Tip #7: Easily Search Ocean City, MD Real Estate
If you’re thinking about to buying a beach place, you can easily search all real estate in Ocean City, MD on my website., or subscribe to my Ocean City, MD real estate listing alerts.
When you subscribe, you’ll get access to:
- New and updated Ocean City listings
- Helpful blog articles (like the one you’re reading now)
- Local resource to help answer your questions
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