Maryland adds tax sale protections for homeowners with health hardships

The State Tax Sale Ombudsman must create a process for a homeowner to name someone to work with the office on the homeowner’s behalf. A homeowner may designate a family member or another representative. This requirement takes effect October 1, 2026.

Baltimore City and county governments must withhold a qualifying homeowner’s dwelling from tax sale. This applies to a homeowner’s dwelling in Baltimore City or a county. A licensed health care provider who treated or examined the homeowner must document the condition. The Department and Ombudsman, consulting the Maryland Department of Health, must define these terms by regulation. The homeowner, a family member, or another representative must apply to the county collector. To keep the dwelling withheld, they must reapply in the second year after it was first withheld and every second year after that. This requirement takes effect October 1, 2026.

The law raises the maximum assessed home value for Homeowner Protection Program eligibility and gives enrollment priority to homeowners with a documented terminal illness or medical hardship. A homeowner must live in a dwelling assessed at $450,000 or less to meet the stated home value limit. Homeowners must have combined income of $60,000 or less. Enrollment priority also applies to homeowners who are at least 60 years old or receive federal disability benefits. The Department’s regulations must use the definitions of terminal illness and medical hardship adopted for the tax sale protection. These changes take effect October 1, 2026.