Councilmember Cohen introduces plan to raise homestead tax credit cap as part of property tax-relief strategy
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Summary
Vice President Cohen introduced City Council Bill 26-0151 to raise the homestead tax credit cap from 4% to 6% to begin lowering Baltimore’s effective property tax rate below $2; the measure was referred to Budget and Appropriations with a hearing set for Feb. 17.
Baltimore — Vice President Cohen introduced City Council Bill 26-0151, a proposal to raise the homestead tax credit cap from 4% to 6% for the taxable year beginning July 2026 as part of a broader property tax-relief strategy.
Cohen said the cap has remained unchanged for decades and that increasing it is intended to generate revenue changes that would allow the city to lower effective property tax rates over time. "This responsive proposal provides tax relief without affecting central city services," Cohen said, and she asked colleagues to support the coordinated effort with Mayor Scott’s administration to make Baltimore more affordable.
Cohen said the plan is a staged strategy: adjusting the cap will not reduce taxes immediately to below $2, but it is a step toward that goal. She told colleagues that members of the finance department and legislative staff are available to provide briefings and that she has discussed the approach with budget committee leadership and the mayor’s office.
The bill was referred to the Budget & Appropriations Committee. Chair McCray moved to waive a council rule in order to schedule the committee hearing less than 30 days after introduction; the waiver was granted and a hearing was set for Feb. 17, 2026, in the Clarence DuBerns council chambers.
Next steps: The Budget & Appropriations Committee will hold a hearing on City Council Bill 26-0151 on 02/17/2026. Councilmembers were invited to request detailed briefings from the finance department prior to that hearing.
