Kent County increases property tax and income tax rates for budget enhancements

Kent County, MD, is set to implement a series of tax adjustments and budgetary changes following the recent commissioners meeting on June 3, 2025. The most significant decision made was the increase in the county's income tax rate from 3.2% to 3.3%, effective January 1, 2026. This adjustment is expected to generate additional revenue earmarked for the middle school project, reflecting the county's commitment to enhancing educational infrastructure.

Property taxes, which constitute 56% of the county's total revenue, will see a modest increase of just 1 cent per hundred dollars of assessed value, marking only a 0.1% rise since 2001. This increase is largely attributed to higher property assessments mandated by the state, rather than a change in the tax rate itself. Kent County's property tax rate remains the seventh highest in Maryland and the highest on the Eastern Shore.

In terms of overall revenue, the county anticipates an increase of approximately $3.3 million in the upcoming fiscal year, driven primarily by property and income tax growth. The budget also outlines a 4% increase in water and sewer rates, aligning with recommendations from a recent rate study.

On the expenditure side, Kent County's budget for fiscal year 2026 will increase by nearly $16.9 million. The largest portion of this budget will be allocated to public schools, which will receive over $21.5 million, including a required local effort and additional funding to meet educational mandates. Other significant expenditures include public safety, general government operations, and infrastructure repairs.

The county is also preparing for future challenges, including state mandates related to educational funding and the implementation of the Time to Care Act, which will require local governments to provide paid leave benefits. These upcoming obligations may strain the county's budget in the years ahead.

As Kent County moves forward, the focus will remain on balancing the need for increased funding in essential services while managing the financial implications of state mandates and rising operational costs. The decisions made in this meeting are poised to shape the county's fiscal landscape for the coming years, emphasizing the importance of strategic planning and community investment.