Understanding Property Taxes on the Eastern Shore

by David J. Moore

Buying a home on Maryland’s Eastern Shore is exciting—whether you’re drawn to waterfront living in Kent Island, charming small towns like Easton, or the wide-open spaces of Queen Anne’s County. But as you plan your budget, there’s one number you can’t overlook: property taxes.

For many buyers, property taxes feel like a mystery—numbers tucked into fine print on listings or popping up late in the buying process. But here’s the truth: understanding how property taxes work on the Eastern Shore will give you peace of mind and help you make smarter decisions when choosing your next home.

What Are Property Taxes, Really?

Property taxes are local taxes assessed on your home and land, collected annually by the county where your property is located. On the Eastern Shore of Maryland, counties like Talbot, Dorchester, Caroline, and Queen Anne’s each set their own property tax rates. These funds go toward local services you actually benefit from—think public schools, fire and police departments, parks, and infrastructure.

When you pay property taxes, you’re investing not only in your home but also in the community you’re moving into.

How Property Taxes Are Calculated on the Eastern Shore

Understanding the math behind property taxes can help you estimate your monthly and annual costs before you buy.

Step 1: Assessed Value

The Maryland State Department of Assessments and Taxation (SDAT) assigns an assessed value to your property, typically close to market value. Reassessments happen every three years.

Step 2: Local Tax Rate

Each county sets a tax rate expressed per $100 of assessed value. For example, Queen Anne’s County might have a different rate than Talbot County, even for homes of the same price.

Step 3: The Calculation

Let’s say you’re buying a home in Stevensville with an assessed value of $400,000. If the county tax rate is $0.84 per $100, here’s the math:

$400,000 ÷ $100 = 4,000
4,000 × $0.84 = $3,360 in annual property taxes

That’s about $280/month added to your mortgage escrow.

Local Examples: What Buyers Can Expect

Kent Island: Buyers love the proximity to Annapolis and the Bay Bridge. A $500,000 home here could mean around $4,200 in annual taxes (depending on exact rate and town assessments).
Easton & Talbot County: Known for its historic charm, Talbot has slightly higher property values, but many buyers find the tax rates manageable.
Dorchester County: With more affordable home prices, overall property tax bills tend to be lower—even if the rate is a touch higher.

These differences mean two homes with the same list price can have very different tax bills depending on location.

Why Property Taxes Matter for Buyers

When you’re budgeting for your dream home, you’re not just looking at the list price. Property taxes directly affect your monthly payment and long-term affordability.

For example:

A buyer approved for a $2,200 monthly payment might only qualify for a $400,000 home in one county but a $425,000 home in another, simply because of the difference in tax rates.
Retirees moving to the Eastern Shore often ask about property taxes since they’re planning around fixed incomes.

The key takeaway? Taxes should be part of your home search strategy, not a surprise at closing.

Ways to Save on Property Taxes

Maryland offers some relief programs you may qualify for:

Homestead Tax Credit: Limits how much your taxable assessment can increase each year if the property is your primary residence.
Homeowners’ Tax Credit: Provides relief if your taxes exceed a certain percentage of your income.
Senior Credits & Local Programs: Some counties on the Eastern Shore offer additional credits for seniors, veterans, or disabled homeowners.

Knowing about these ahead of time can help you plan smarter and potentially lower your bill.

The Emotional Side of Property Taxes

Let’s be honest—no one loves writing that check or seeing the escrow deduction. But think of it this way: property taxes are the fuel that keeps your new community running. They’re the reason your kids will have well-funded schools, your neighborhood has safe roads, and your town hosts family-friendly events.

One of my clients who recently bought in Chester told me: “At first, the tax bill felt like one more cost. But once we realized it supported the community we fell in love with, it felt like an investment—not just an expense.”

That’s exactly the perspective I encourage buyers to take.

How a Realtor Helps with Property Tax Questions

As a buyer, you don’t have to figure this out on your own. When we work together, I’ll:

Run side-by-side comparisons of homes in different Eastern Shore towns with their estimated property taxes.
Help you connect with local resources to check homestead and homeowners’ credits.
Factor taxes into your VIP Buyer Program strategy, so your monthly budget works for you long after closing.

It’s about more than finding the perfect house—it’s making sure it fits your lifestyle and finances comfortably.

Final Thoughts: Be Informed, Not Overwhelmed

Property taxes don’t have to feel intimidating. Once you understand how they’re calculated and what they fund, they become just another part of the bigger picture of homeownership.

If you’re planning a move to the Eastern Shore, whether it’s to Kent Island, Easton, Stevensville, or anywhere in between, knowing the property tax landscape will give you confidence in your decision.

👉 Ready to buy? Contact David J. Moore & Associates at 410-733-6477 or visit ChesapeakeShoresRealtor.com to learn about our VIP Buyer Program. We’ll guide you through every detail—from property taxes to waterfront views—so your dream home on the Eastern Shore becomes a reality.