One of the biggest concerns for those considering a move to Baltimore is likely the property tax. If you've heard that Baltimore City has one of the highest nominal tax rates in Maryland, that concern may be even greater.

The property tax rate in Baltimore City is $2.248 per $100 of assessed value, which translates to a nominal rate of about 2.25%, more than double the Maryland state average of around 1.05%. However, thanks to the Homestead Tax Credit, which caps the rate of increase in home values, the effective tax rate often feels somewhat lower.

The median home price in Baltimore City is around $180,000 to $200,000 as of 2025, which is lower than nearby Baltimore County or Howard County. If you apply the nominal rate to this price range, the annual property tax would be calculated at around $4,000 to $4,500, but long-term residents benefiting from the Homestead Credit often find their actual burden is lower than this.

Home insurance premiums are typically in the range of $1,500 to $1,900 annually, reflecting the geographic risk of hurricane residual storms due to proximity to the Atlantic coast. Older rowhouse properties may face stricter insurance assessments due to aging plumbing and electrical systems, making pre-inspections particularly important.

For maintenance costs, considering that Baltimore's housing stock is quite old, I would recommend budgeting around 1.5% to 2% of the home price. For a $190,000 home, this would be about $2,800 to $3,800 annually, and if roof or plumbing replacements are planned, it's wise to budget more generously.

When you add up property taxes, insurance, and maintenance costs, the total annual cost of homeownership is estimated to be around $8,500 to $10,000. It's also worth noting that while Baltimore County and Howard County have lower nominal rates, their higher home prices mean there isn't a significant difference in absolute tax amounts.

In addition to the Homestead Tax Credit, Maryland also operates a separate property tax credit program for owner-occupants, allowing qualifying households to apply for additional reductions each year based on income requirements.

If you are a Korean household settling in Baltimore, I urge you not to miss the Homestead application in your first year of moving, and you can contact the City's Department of Assessments and Taxation (SDAT) for friendly guidance on the process.