Baltimore city leaders announced a three-part strategy Monday aimed at reducing the property tax burden for homeowners and making the city more competitive with surrounding jurisdictions.

Mayor Brandon Scott acknowledged property taxes remain a barrier for many residents.

The first step raises the Homestead Tax Credit cap from 4% to 6%, aligning Baltimore with other Maryland jurisdictions. This cap limits how much a home’s taxable value can increase each year.

Second, officials will increase the tax credit to bring the effective residential property tax rate below $2 per $100 of assessed value. For example, a $300,000 home currently taxed at an effective rate of just over $6,500 would see annual taxes drop to about $6,400, translating to roughly $350 in savings over three years.

Third, the city will launch a campaign to encourage enrollment in state programs they already qualify for renters and homeowners tax credits, further boosting relief.

City Council President Zeke Cohen said the changes will help retain current residents and attract new ones.

“This has been a real problem for the city of Baltimore, not being competitive with our surrounding jurisdictions, having a burden that is above everywhere else has inhibited the growth of our city,” he said.

The city is also partnering with Maryland Legal Aid to reform the tax sale system. The agreement will implement payment plans for low-income homeowners, set minimum bids at the assessed value, and compensate residents who previously lost homes through tax sales.

Officials said the measures, which will take effect next fiscal year, aim to deliver meaningful relief while maintaining essential city services.