Montgomery County raises property tax rate 2.4% for 2026-27

Montgomery County commissioners approved a 2.4% property tax rate increase for fiscal 2026-27, alongside a $546 million budget. The higher county rate is expected to raise the annual bill for a median homeowner by about $24 to $36, though final tax bills will vary by exemptions and other local taxing entities.

Why it matters: - The county’s new rate will raise the Montgomery County portion of property taxes for many homeowners in the 2026-27 fiscal year. - The increase adds to household costs at a time when property taxes, exemptions and taxable values are all affecting final bills. - The county budget also directs more money to roads, infrastructure and law enforcement pay.

What happened: - Montgomery County Commissioners voted 3-2 on Tuesday, Sept. 8, to adopt a property tax rate of $0.3860 per $100 of taxable value for fiscal year 2026-27. - The new rate is up from $0.3770 the previous year. - The rate increase is about 2.4%, or $0.009 per $100 of taxable value. - Commissioners also approved a $546 million budget for fiscal 2026-27. - The budget is about $38 million higher than the previous year’s $508 million budget.

The details: - The budget includes funding for road and infrastructure projects. - The budget includes more than $3 million for law enforcement wages and related expenses. - The new tax rate applies only to the Montgomery County portion of property taxes. - Cities, school districts and special districts set their own property tax rates separately. - Montgomery County officials said the higher rate is expected to increase the property tax bill for a median-value homeowner by about $2 to $3 per month. - That works out to about $24 to $36 more in county property taxes over a year. - Individual homeowners may see different changes based on their property’s taxable value and applicable exemptions. - Property taxes are calculated from taxable value and the tax rate, and exemptions can lower the taxable value used in the calculation. - For 2026 property tax bills, the Montgomery County rate is only one part of the total amount owed. - Other taxing entities on the property can change the final bill.

Between the lines: - The 3-2 vote suggests some disagreement among commissioners over the size of the increase and the spending plan behind it. - The median-homeowner estimate points to a modest monthly change, but the total impact can be much larger for higher-value properties. - The county is balancing tax pressure on residents with spending on infrastructure and public safety. - Patrick O’Connor, president of O’Connor, said homeowners should review their property values and available exemptions to make sure they are not paying more than necessary.

What's next: - Homeowners reviewing 2026 tax bills will need to check county, city, school and special-district rates to understand the full amount owed. - Property owners who believe their taxable value is too high can review exemptions and consider appealing their assessment. - O’Connor is offering its Property Tax Protection Program, which has no upfront fee and charges only if taxes are reduced.

The bottom line: - Montgomery County’s new rate is a small percentage increase, but it will still push county tax bills higher for many residents, with the final impact shaped by exemptions and other local taxes.