Buying a home in Montgomery County means budgeting for a multi-layered tax bill. In the City of Gaithersburg, property owners pay a combined rate that includes state, county, and municipal levies.

Figuring out your exact monthly escrow requires looking past the number on a real estate listing. Because Maryland caps how fast assessed values can rise for existing homeowners, the seller's current tax bill rarely matches what a new buyer will pay.

At a Glance

  • Combined rate (state + county + city): $1.295 per $100 of assessed value
  • Townhouse median sale price: $545,006 (67 sales, 90 days ending 2026-09-30)
  • City stormwater fee: $32.28 per impervious billing unit
  • City recycling fee: $143.56 per household (single-family or townhouse)
  • County solid waste charge: $35.76

Key Takeaway

To estimate a Gaithersburg property tax bill, multiply your expected assessment by the combined state, Montgomery County, and city rate, then add the city's fees. Do not copy the seller's bill, which often reflects a homestead cap that ends when the home sells. On a single-family home near the recent median of $864,655, that cap gap adds up quickly. If the home has a Gaithersburg mailing address but sits outside city limits, use the county-only rate instead.

Who This Guide Is For

You are pricing a home in or around Gaithersburg and need a realistic yearly tax figure before you set a budget or make an offer.

Gaithersburg Property Tax Rate and How the Bill Is Built

Every home inside Gaithersburg city limits pays the same combined state, county, and city rate. The bill a buyer pays turns on three things: whether the address is truly inside city limits, how far the seller's capped assessment trails full value, and whether the buyer files for the homestead credit.

The total rate stacks three separate levies. For Fiscal Year 2027, the Maryland state rate is $0.112 on real property. Montgomery County adds a general and special-fund rate of $0.9210 for property inside the City of Gaithersburg. The City of Gaithersburg then charges its own municipal rate of $0.262, bringing all three layers to a combined $1.295 per $100 of assessed value. Montgomery County's Department of Finance issues one single bill covering all three layers, and the county's estimated-bill page breaks them out as separate lines alongside non-tax charges like solid waste and stormwater fees.

On top of the rate-based taxes, the City of Gaithersburg charges a stormwater program fee of $32.28 per impervious billing unit and a recycling fee of $143.56 per household for single-family or townhouse owners. Montgomery County adds a solid waste charge of $35.76. Maryland's State Department of Assessments and Taxation (SDAT) reassesses all real property on a three-year cycle, phasing in any increases evenly over those three years. The City of Gaithersburg's next triennial reassessment cycle is FY27.

Working out your costs comes down to three questions. First, does SDAT list the property inside the City of Gaithersburg? If yes, use the full combined rate. Second, has the seller owned the home long enough that a homestead cap is holding their bill below full value? If so, read the section below on why the seller's bill differs before trusting the listing's tax figure. Third, will this be your principal residence? If yes, you can apply for credits, and the worked example below will help you scale an estimate based on the property type you're considering.

Example: Property Tax on a Median-Priced Gaithersburg Townhouse

Townhouses are the most common sale in the area, with a recent median sale price of $545,006 (67 sales, 90 days ending 2026-09-30). To estimate the tax, assume the SDAT assessment is close to that purchase price. Divide that median by 100, giving you 5,450.06. Multiply by the combined rate, and the base tax comes to $7,057.83.

Add the city stormwater fee, city recycling fee, and county solid waste charge, and the total estimated annual bill lands at roughly $7,269, about $605 per month in escrow. For FY2027, the Montgomery County Council voted to eliminate the Income Tax Offset Credit, so no standard offset reduces this total.

This is an estimate, not a quote, and the sale price is not the assessment. The figure overshoots if SDAT's current phase-in value sits below the purchase price, and it undershoots once the next reassessment catches up. Check the actual phase-in value on SDAT before relying on it. A buyer's first full bill is figured on the full phase-in value with no carried-over homestead cap, so it can top the seller's bill even when rates have not moved.

How Much Property Tax You'll Pay on a Gaithersburg Home

Property taxes scale directly with a home's assessed value, so the property type you choose makes a significant difference in the tax line.

  • All homes, median sale price: $564,731, up 4.6% year over year (135 sales, 90 days ending 2026-09-30)
  • Single-family, median sale price: $864,655, up 6.9% year over year (44 sales, 90 days ending 2026-09-30)
  • Townhouse, median sale price: the same median noted above, up 3.8% year over year (67 sales, 90 days ending 2026-09-30)
  • Condo, median sale price: $266,973, up 16.1% year over year (based on 26 condo sales, 90 days ending 2026-09-30; small sample, treat with caution)
  • Median sale price per square foot: $323 single-family (44 sales), $284 townhouse (67 sales), $211 condo (based on 26 condo sales), 90 days ending 2026-09-30

If you want the lowest value-based tax per square foot of living space, condos are worth a look. They recently sold at a median $211 per square foot versus $323 for single-family homes (based on 26 condo sales over the 90 days ending 2026-09-30). Because the tax follows value, condo owners carry a lower tax burden, though buyers should factor condo association fees separately.

New construction follows a slightly different timeline. A new build may first be billed on the land value or a partial year until SDAT adds the improvements to the assessment. Payments for partial-year levies on newly constructed properties are due 30 days after the bill is mailed. You should also check the tax bill for any Washington Suburban Sanitary Commission (WSSC) front foot benefit charge, which pays for water and sewer line construction. To understand your full household budget, review our guide on the cost of living in Gaithersburg. You can also check our housing market page for local price trends.

Why the Seller's Tax Bill Isn't Your Tax Bill

A listing's tax history can mislead buyers because it reflects the Maryland Homestead Property Tax Credit, which caps yearly assessment increases for owner-occupied homes. When a home sells, that homestead credit does not transfer to the buyer.

The prior owner's credit drops off after the transfer, and the new owner must file a new Homestead Application with SDAT to establish the credit going forward. Because SDAT phases in reassessment increases over three years, a long-held home might carry a taxable value far below its market value. Once the cap is removed, the new buyer pays taxes on the full phase-in value.

This gap hits hardest where values climb fast. The condo market saw prices rise 16.1% year over year (based on 26 sales), which means a condo buyer has the most reason to compare SDAT's full value to the seller's taxable amount. If you want a first-year bill with the least chance of a jump, look for homes where SDAT's current phase-in value is already close to the asking price.

Budget from the full phase-in value, not the listing's tax figure. Pull the SDAT record and compare the current value, phase-in value, and homestead status. Ask your lender how escrow will be set once the seller's credits drop off.

Dart Homes can pull the SDAT record for a home you're considering to help clarify the numbers. You can also read our guide on closing costs in Gaithersburg to understand tax proration at settlement. For more on monthly payments, check our mortgage rates page for escrow details.

Is the Home Inside Gaithersburg City Limits?

A Gaithersburg mailing address does not guarantee the property sits inside the municipal boundary. The City of Gaithersburg GIS Division maintains the official boundary map that dictates who pays city taxes. SDAT's Real Property Search shows the municipality for each specific account.

If the address falls outside city limits, the city rate and city fee lines drop off entirely, and county-level charges apply instead. Buyers frequently shop in nearby areas like Montgomery Village, North Potomac, and Quince Orchard, which often carry Gaithersburg mailing addresses but sit outside the city proper. Verify each address rather than assume its status.

For a broader comparison of these areas, check our guide on Gaithersburg vs Montgomery County. A home outside city limits skips the city tax but carries different county charges, so pull the county's estimated bill for both addresses before drawing conclusions.

How to Lower Your Gaithersburg Property Tax Bill

Homeowners have a few ways to reduce their annual property tax burden. If the home will be your principal residence, apply for the homestead tax credit with SDAT after settlement. This limits how much your taxable assessment can increase each year, protecting you from sudden spikes tied to market value.

Owners with limited household income can apply for the Maryland Homeowners' Property Tax Credit. A separate county senior credit also exists, which ties into the state application process. Qualifying disabled veterans may receive a full property tax exemption under Maryland law. To qualify, the dwelling must be the principal residence of a disabled veteran with a 100% service-connected permanent disability rating. A disabled active-duty service member with a qualifying physical disability also qualifies, and eligible unremarried surviving spouses can receive the exemption by applying through SDAT's local Supervisor of Assessments.

You can also appeal the SDAT assessment if you believe it overstates the home's value. Note the date on your assessment notice carefully, because the appeal deadline runs from that exact date. The strongest evidence for an appeal is recent comparable sales in your neighborhood. Condo comparables are often thin, so treat small sample sizes with caution when building your case. Confirm your eligibility for any credit or exemption directly with SDAT or a tax professional.

How to Look Up and Pay Your Gaithersburg Property Tax Bill

Once you have the account details from SDAT's Real Property Search, the Montgomery County Department of Finance portal lets you view and pay the bill, and the county's estimated-bill page displays every line-item charge for a specific property.

Residents can pay their Montgomery County real estate property tax bill online by e-check for free or by credit card with a 2.3% fee. Most mortgaged owners pay through an escrow account and should confirm that the lender's payment posted correctly. Open the county's estimated tax bill page for the specific account to see every charge, including any front foot benefit charge.

For a wider look at the purchase process, read our guide on buying a home. Dart Homes can run this estimate for homes on a shortlist to help you compare costs.

Gaithersburg Property Tax FAQs

Is Gaithersburg in Montgomery County?

Yes. Montgomery County's Department of Finance bills and collects the state, county, and city taxes on one combined bill. The Montgomery County general and special-fund property tax rate applied to property inside the City of Gaithersburg is $0.9210 for FY2027.

Is Gaithersburg Expensive to Own a Home In?

The median sale price for all homes in Gaithersburg is $564,731, up 4.6% year over year. Since property tax scales directly with assessed value, your annual tax burden will reflect those prices. You can review our cost of living page for a complete breakdown of household expenses.

How Much Is Property Tax on an $800,000 House in Gaithersburg?

An $800,000 home assessed inside city limits faces a base tax of $10,360 using the combined rate. Add the three annual fees and the estimated total comes to roughly $10,571 before any homeowner credits are applied.

Is Maryland Property Tax Around 1%?

The state levy alone is very small, at $0.112, so the Maryland-only share is far below 1%. Add the Montgomery County rate and the City of Gaithersburg rate, and the combined rate sits at roughly 1.3% of the home's assessed value. That percentage applies to the SDAT assessed value, not the market sale price.

When Are Property Taxes Due in Gaithersburg?

Check the exact bill issue month and annual or semiannual due dates on the Montgomery County Department of Finance portal. Owners with escrow accounts should confirm with their lender that payments are scheduled and paid on time. For newly constructed properties, partial-year levies are billed separately; see the new construction note in the section above.

At What Age Do Seniors Stop Paying Property Taxes in Maryland?

There is no age at which Maryland homeowners automatically stop paying property taxes. Montgomery County offers a Senior Property Tax Credit for residents at least 65 years old who use the home as their principal residence and meet specific income criteria. For 2026, combined gross household income cannot exceed $60,000, and net worth must not exceed $200,000.

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