$LevyIO

Home Energy Tax Credit in Baltimore, MD 2026

Calculate your home energy tax credit tax savings in Baltimore, Maryland. With Maryland's 5.75% state tax rate, your combined savings are higher.

Maryland Tax Context

State Income Tax
5.75%
Local Income Tax
3.2%
Property Tax Rate
1.04%
Tax Burden
Moderate

Baltimore City piggyback income tax rate of 3.2% (highest in MD); all MD counties levy piggyback tax

$3,200
Est. Total Savings
$3,200
Max Deduction
Tax Credit
Deduction Type
30.9%
Combined Tax Rate

Home Energy Tax Credit Savings Calculator for Baltimore

$
$

Federal Savings

$3,200

22% bracket

Maryland State

$0

5.75% rate

Local Tax

$0

3.2% rate

Total Savings

$3,200

30.9% combined

Tax credits reduce your tax bill dollar-for-dollar, regardless of your tax bracket.

Savings by Tax Bracket in Baltimore

10%
$5,000
12%
$5,000
22%
$5,000
24%
$5,000
32%
$5,000
35%
$5,000
37%
$5,000

Includes 5.75% Maryland state tax + 3.2% local tax on top of federal savings.

Eligibility Requirements

Homeowners who install energy-efficient improvements

  • 1Must be primary residence
  • 2Qualifying improvements only
  • 3Keep receipts

Maryland residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 5.75%.

Common Mistakes to Avoid

  • !Claiming for rental properties
  • !Missing manufacturer certifications
  • !Forgetting to claim the deduction on your Maryland state return (missing 5.75% additional savings)
  • !Not checking if Baltimore's local income tax allows this deduction (3.2% potential additional savings)

Required Tax Forms

Form 5695

File these forms with your federal tax return to claim the home energy tax credit. Maryland may require additional state-specific forms.

Other Tax Deductions in Baltimore, MD

Mortgage Interest Deduction

Housing

~$4,924
est. savings

Property Tax Deduction

Housing

~$3,095
est. savings

Home Office Deduction

Housing

~$1,688
est. savings

Residential Solar Tax Credit

Housing

~$7,500
est. savings

Military Moving Expenses

Housing

~$5,627
est. savings

PMI Premium Deduction

Housing

~$1,548
est. savings

Mortgage Points Deduction

Housing

~$2,814
est. savings

Casualty & Theft Loss Deduction

Housing

~$7,034
est. savings

Home Energy Tax Credit in Other Maryland Cities

Columbia, MD

5.75% state + 3.2% local

~$1,800
-1,400 vs Baltimore

Germantown, MD

5.75% state + 3.2% local

~$1,800
-1,400 vs Baltimore

Silver Spring, MD

5.75% state + 3.2% local

~$1,800
-1,400 vs Baltimore

Frederick, MD

5.75% state + 2.96% local

~$1,800
-1,400 vs Baltimore

Waldorf, MD

5.75% state + 0.6% local

~$1,800
-1,400 vs Baltimore

Ellicott City, MD

5.75% state + 1.68% local

~$1,800
-1,400 vs Baltimore

Glen Burnie, MD

5.75% state + 2.76% local

~$1,800
-1,400 vs Baltimore

Rockville, MD

5.75% state + 3.2% local

~$1,800
-1,400 vs Baltimore

Calculate Your Full Tax Savings in Baltimore

Use our free tax calculators to optimize your entire tax return for Maryland.

Income Tax CalculatorTaxes in BaltimoreFull Home Energy Tax Credit Guide

Frequently Asked Questions

How much can I save with the Home Energy Tax Credit in Baltimore, MD?

In Baltimore, Maryland, the home energy tax credit can save you an estimated $3,200 per year. This includes $3,200 in federal tax savings and $0 in Maryland state tax savings plus $0 in local tax savings. The national average savings is $1,800/year.

What is the Maryland state income tax rate for Baltimore residents?

Maryland has a 5.75% state income tax rate. Baltimore residents also pay a 3.2% local income tax, bringing the combined state/local rate to 8.9%. Baltimore City piggyback income tax rate of 3.2% (highest in MD); all MD counties levy piggyback tax

Who qualifies for the Home Energy Tax Credit in Baltimore?

Homeowners who install energy-efficient improvements. The eligibility requirements are the same whether you live in Baltimore or elsewhere in the U.S., as this is a federal tax credit. However, your savings amount will vary based on Maryland's 5.75% state tax rate.

What tax forms do I need to claim the Home Energy Tax Credit in Maryland?

To claim the home energy tax credit, you need to file Form 5695 with your federal return. Maryland residents should also check if the state allows this deduction on their state return, which could provide an additional 5.75% savings. Filing status affects your deduction limits and tax bracket.

Is the Home Energy Tax Credit better in Baltimore than in states without income tax?

Yes, Baltimore residents benefit more because Maryland's 5.75% state income tax means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 30.9% means more savings per dollar deducted.

Related Calculators

Mortgage Interest Deduction in Baltimore

Avg savings: $3,500/year

Property Tax Deduction in Baltimore

Avg savings: $2,200/year

Home Office Deduction in Baltimore

Avg savings: $1,200/year

Residential Solar Tax Credit in Baltimore

Avg savings: $7,500/year

Military Moving Expenses in Baltimore

Avg savings: $4,000/year

PMI Premium Deduction in Baltimore

Avg savings: $1,100/year