Maryland Depreciation Calculator

Real estate depreciation lets you deduct the cost of a building over its useful life — 27.5 years for residential property. Pre-filled with Maryland median property value of $415,000.

Market

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Property Details

Property Type

Purchase Price

Land Percentage($83,000 land)

Capital Improvements

Tax & Timeline

Marginal Tax Rate

Years Held

Depreciation Schedule

$12,073$12,073 total

$12,073$24,145 total

$12,073$36,218 total

$12,073$48,291 total

$12,073$60,364 total

$12,073$72,436 total

$12,073$84,509 total

$12,073$96,582 total

$12,073$108,655 total

$12,073$120,727 total

$12,073$132,800 total

$12,073$144,873 total

$12,073$156,945 total

$12,073$169,018 total

$12,073$181,091 total

$12,073$193,164 total

$12,073$205,236 total

$12,073$217,309 total

$12,073$229,382 total

$12,073$241,455 total

$12,073$253,527 total

$12,073$265,600 total

$12,073$277,673 total

$12,073$289,745 total

$12,073$301,818 total

$12,073$313,891 total

$12,073$325,964 total

$6,036$332,000 total

Maryland Market Context

Avg Cap Rate

5.5%

Median Price

$415K

Property Tax

0.9%

Vacancy Rate

5.7%

Local Factors

-Proximity to DC provides strong government and defense contractor rental demand
-Baltimore offers affordable investment opportunities but with higher management intensity
-Tenant-friendly laws require careful lease structuring

Sources

World Population Review – Median Home Price FL Probate Law – Property Tax Rates (ACS Data)The Hartford – Insurance Rates iPropertyManagement – Vacancy Rates

Annual Depreciation

$12,073

$1,006/mo

Solid Savings

Annual Tax Savings$2,897

Depreciable Basis$332,000

Building Value$332,000

Land Value$83,000

Useful Life27.5 years

Total Deductions Taken$12,073

Total Tax Savings$2,897

Years Remaining27 of 27.5

Land (Non-depreciable)$83,000

Depreciation Taken$12,073

Remaining Basis$319,927

What does this mean?

You're getting meaningful tax savings from depreciation. This phantom expense reduces your taxable rental income without costing you anything out of pocket.

How Real Estate Depreciation Works

Depreciation is one of the most powerful tax benefits of owning rental property. The IRS allows you to deduct the cost of a building (not land) over its useful life — 27.5 years for residential and 39 years for commercial property.

This is called straight-line depreciation because you take equal deductions each year. It's a "paper loss" — your property might be appreciating while you claim it's losing value. That phantom expense offsets rental income and reduces your tax bill.

Keep running the numbers

One calculator rarely tells the whole story.

Depreciation is the silent return in Maryland. See how it compounds.

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