Maryland: Commercial Property Owners See Significant Reassessment Increases in 2026

In late December 2025, the Maryland State Department of Assessments and Taxation (SDAT) issued new assessment notices for approximately one-third of all properties across the state for the 2026–2028 triennial assessment cycle. As a result, average property values spiked by 12.7% compared to this group’s last assessment year of 2023. While the increases do reflect three years of collective value growth, in many cases the new values fail to account for the current strained market conditions, as well as individual property burdens detracting respective market values.

In and around Maryland and the greater Washington, D.C. Metro area, the office market continues to struggle with rising vacancy and decreasing demand, which is in turn depressing property values. Vacancy rates have climbed into the high teens and above 20% in some instances, accompanied by negative net absorption as tenants reduce footprints or leave altogether, leaving more space empty than leased.

Further, the recent wave of restrictive rent control and rent stabilization measures passed in Maryland, including county-level caps on annual rent increases and broader tenant protections, is impacting the market. Laws in Montgomery County and Prince George’s County now limit how much rents can rise each year—even on vacant units—while new statewide protections under the Renters’ Rights and Stabilization Act of 2024 add regulatory complexity for landlords. These controls are reducing potential revenue streams for property owners and have already contributed to a sharp drop in multifamily building permits and investor interest. The result puts downward pressure on property values and slows transactions in Maryland’s broader commercial and rental housing markets.

While property tax bills based on the new values will not be mailed until the summer, the new assessments were released in late December 2025 for approximately one-third of Maryland real property owners. The appeal deadline for the recently assessed properties is fast approaching in early February.

Additionally, new property owners who purchase properties between January 1 and June 30 can file a new owner appeal, so long as the appeal is filed within 60 days of closing. Properties not assessed in 2026 have an “out-of-cycle” appeal deadline on December 31.

Do not risk an increase in your 2026 property taxes! The valuation specialists at Ryan with local expertise and experience assist more Maryland property owners and operators with analysis of audits and appeals than any other provider.

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals.