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The Maryland Homestead Tax Credit is a cap on the amount a property assessment is permitted to increase each year. This credit is available only to owner-occupants (meaning you must live in the residence you are claiming benefit for). The amount of the cap that will apply to a property or homeowner depends on the cap in the county or city where the property is located. In any given year, under a state requirement, there is a 10% cap on property tax assessment increases.