What is the High Bid Premium and how is it calculated?

The statute for the authority to conduct a tax sale foreclosure using the high bid Premium method is provided in the Annotated Code of Maryland, Tax Property Article 14-817(b) (2) et. seq.

• The High Bid Premium is calculated on the amount of the bid that exceeds 40% of the property’s full cash value.
• The amount of the High Bid Premium is 20% of the amount that exceeds 40% of the property’s full cash value.
• The High Bid Premium shall be paid on the date of the sale along with all taxes and other municipal liens, interest and penalties, and all costs incurred in the Tax Certificate Sale.
• Interest shall not be paid on the High Bid Premium.

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