Property Taxes in Potomac, Maryland
Median Potomac, Maryland effective property tax rate: 1.13%, significantly higher than the national median of 1.02%, and lower than the Maryland state median of 1.21%.
Median Potomac, Maryland home value: $1,030,500
Median annual Potomac, Maryland tax bill: $11,599, $9,199 higher than the national median property tax bill of $2,400.
How are property taxes in Montgomery calculated?
Property taxes in Potomac, Maryland are calculated based on the tax assessed value, which is often lower than the actual market value due to property tax exemptions such as the homestead or senior exemption.
Understanding Potomac's property tax system, exemptions, and reduction opportunities can lead to significant savings. Regardless of where you live in Potomac, knowing local tax details benefits homeowners and investors.
Last Updated April 13, 2026
How Does the Potomac Property Tax Calculator Work?
Use this Potomac property tax calculator to estimate your annual property tax bill. Enter your property's assessed value and our calculator applies Potomac's median effective tax rate of 1.13% — based on actual property records in Montgomery County — to generate your estimate.
Enter your property's estimated assessed value — the figure the local appraisal district uses to calculate your bill, which reflects any exemptions you hold and is typically lower than your home's market value. Our calculator applies Potomac's median effective rate across all local levies, providing a more accurate estimate than applying a single county millage rate.
Your bill may vary by ZIP code within Potomac: rates range from $11,596.00 in 20854 to $13,575.00 in 20850, primarily due to differences in school district levies and local assessment districts.
For a more precise estimate, scroll down to explore ZIP code-level tax rate trends across Potomac.
About Potomac Property Taxes
About Property Taxes in Potomac, Montgomery, Maryland
Potomac’s median effective property tax rate of 1.13% is lower than the Maryland state median of 1.21% and higher than the national median of 1.02%. This rate reflects the Montgomery County base levy combined with local school district levies and special taxing districts that vary by subdivision throughout the city.
Property tax rates are not uniform across Potomac. Homeowners in the 20850 ZIP code carry a median effective rate of 1.22%, while those in 20854 pay 1.13%. This spread — 0.09 percentage points across the same city — reflects how school district boundaries and local assessment districts are drawn across Montgomery County. Understanding which part of Potomac you live in can make a meaningful difference to your annual tax bill.
Potomac homeowners who believe their assessed value is too high can file a formal appeal with the Tax Assessor before the February 13, 2026 deadline each year.
If your estimated bill above seems higher than expected, Ownwell can review your assessment and protest on your behalf. You only pay if we save you money.
Property Tax Rates Across Potomac, Montgomery County, Maryland
As noted earlier, local government entities set tax rates, which can vary widely within a state.
Why? Because annually, each county estimates its required budget to provide services and divides that by the total value of all taxable property within its jurisdiction. This calculation results in the property tax rate.
While there are votes and laws involved in setting tax rates and budgets, in a nutshell, this is the annual process.
Below, you can compare Potomac's effective property tax rate to other cities in Maryland and the median property tax rates in Maryland and the U.S.
Our median effective property tax rate (tax bill ÷ assessor's market value) accounts for exemptions and deductions, making it more accurate than the general median tax rate, which is the midpoint of statutory rates before adjustments.
Median Effective Potomac Tax Rate
1.13%
Our median effective property tax rate (tax bill ÷ assessor's market value) accounts for exemptions and deductions, making it more accurate than the general median tax rate, which is the midpoint of statutory rates before adjustments.
Median Effective Montgomery County Tax Rate
1.19%
Median Effective Maryland Tax Rate
1.21%
Median Effective United States Tax Rate
1.27%
Property Tax Rates Across Potomac, Montgomery County, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 20850 | 1.20% | 1.21% | 1.22% | 1.23% | 1.23% |
| 20854 | 1.06% | 1.09% | 1.13% | 1.18% | 1.22% |
| 20852 | N/A | N/A | N/A | N/A | N/A |
Source: Ownwell
Property Tax Assessment Values Across Potomac, Montgomery County, Maryland
When examining property taxes in Potomac, Maryland, understanding the distinction between market value and assessed value is crucial.
The market value is what a willing buyer would pay to a willing seller in an open and competitive market, often influenced by location, property condition, and economic market trends. The Montgomery County assessment office estimates the market value for tax purposes.
The assessed value is the market value minus any applicable exemptions or limits determined by local laws and offerings. The tax assessed value is the figure used to calculate your property taxes or the amount multiplied by your tax rate to get your tax bill.
Assessment notices:
In Montgomery County, assessment notices are sent in the spring each year. They'll typically reach your mailbox by the middle of March.
Each property owner receives an assessment notice that contains both the market value and assessed value, along with an estimate of your property tax bill. By providing insights into how assessed and market values are determined, this section helps property owners navigate their tax responsibilities and understand the valuation processes affecting their property taxes in Potomac.
For example, the median home price in Potomac is $1,030,500, with tax bills ranging significantly across the county. 20850 has the highest median home price at $1,111,450.
Property Tax Assessment Values Across Potomac, Montgomery County, Maryland
Source: Ownwell
$110,000
$614,075
$1,118,150
Median Potomac Market Value
$1,030,500
Median Montgomery County Market Value
$520,100
Median Maryland Market Value
$338,400
Median United States Market Value
$274,101
Property Tax Assessment Values Across Potomac, Montgomery County, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 20850 | $914,150 | $987,925 | $1,111,450 | $1,383,050 | $1,609,770 |
| 20854 | $717,930 | $834,775 | $1,030,400 | $1,360,500 | $1,784,970 |
| 20852 | N/A | N/A | N/A | N/A | N/A |
Source: Ownwell
Property Tax Bills Across Potomac, Montgomery County, Maryland
Property tax bills in Potomac are calculated by applying Montgomery County’s tax rate to a home’s assessed market value. The assessed value is based on the property’s worth, not what the owner originally paid, and it can change as market conditions shift. For homeowners, that means a higher assessed value usually leads to a larger tax bill, while a lower assessed value can reduce it.
With a median home price of $1,030,500, property taxes can be substantial. The 25th percentile tax bill is $9,514, the 75th percentile is $15,382, and the 90th percentile reaches $20,285. That is far above the national median property tax bill of $2,400 and reflects how expensive homes in the area can drive taxes higher.
Because property taxes are tied to assessed value, homeowners should pay close attention to how their property is valued each year. Even small changes in assessment can have a meaningful impact on the amount due.
Median Potomac Tax Bill
$11,599
Median Montgomery County Tax Bill
$6,208
Median Maryland Tax Bill
$4,092
Median United States Tax Bill
$3,209
Property Tax Bills Across Potomac, Montgomery County, Maryland
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 20850 | $11,302 | $12,153 | $13,575 | $16,702 | $19,312 |
| 20854 | $8,065 | $9,511 | $11,596 | $15,381 | $20,285 |
| 20852 | N/A | N/A | N/A | N/A | N/A |
Source: Ownwell
Don't miss the deadline to appeal!
Dates | |
|---|---|
| Appeal Deadline | February 13 |
Links | |
|---|---|
| Montgomery Tax Assessor | |
| Website | sdat.dat.maryland.gov |