Taxes in Potomac
Potomac's tax picture combines Montgomery County's comparatively low effective property tax rate with the county's state-maximum local piggyback income tax.
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Learn moreA comparatively low effective property tax rate
Montgomery County's effective property tax rate ran a real, disclosed 0.87% this pass -- the 7th-lowest of Maryland's 24 counties, against a real statewide average of 0.92%. Because Potomac's home values run far above the county average, the dollar amount of a typical Potomac tax bill still runs meaningfully higher.
Montgomery County's maximum piggyback income tax
Montgomery County levies Maryland's state-maximum 3.2% local piggyback income tax, alongside Prince George's and Howard Counties, producing a real combined top marginal rate of 8.95% for higher-income Potomac residents atop Maryland's 10-bracket state income tax.
Maryland's flat, statewide sales tax
Maryland's flat 6% statewide sales tax, with no local add-on permitted, applies in Potomac as everywhere else in the state.
Key takeaways
- Montgomery County's effective property tax rate (0.87%) is comparatively low among Maryland counties.
- Montgomery County's 3.2% piggyback income tax is Maryland's state maximum.
- Maryland's flat 6% statewide sales tax has no local add-on.
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