Taxes in Maryland
Maryland State Tax Quick Facts
- State income tax: 2.00% - 5.75%
- County income tax: 2.25% - 3.20%
- Sales tax: 6.00%
- Property tax: 1.07% effective rate
- Gas tax: 27.1 cents per gallon of regular gasoline, 36.8 cents per gallon of diesel
Maryland is among the states in which local governments levy their own taxes on personal income. Specifically, counties in Maryland collect income taxes with rates ranging from 2.25% to 3.20%. Additionally, there is a statewide income tax in Maryland, with a top rate of 5.75%.
These combined state and local taxes place Maryland in the top half of U.S. states for income taxes. Its state sales tax of 6% is one of the highest in the country, although there's no local sales tax. The state’s property taxes, at an effective rate of 1.07%, are slightly higher than the national median (1.02%). Of course, all of these taxes and rates are subject to their own specific rules and exceptions. Here we’ll take a closer look into the Maryland state tax system.
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Maryland Income Taxes
There are both state and county income taxes in Maryland. The state tax is structured based on income brackets, similar to the federal tax system.,
Income Tax Brackets
- Single Filers
- Married, Filing Jointly
- Married, Filing Separately
- Head of Household
| Single Filers | |
| Maryland Taxable Income | Rate |
|---|---|
| $0 - $1,000 | 2.00% |
| $1,000 - $2,000 | 3.00% |
| $2,000 - $3,000 | 4.00% |
| $3,000 - $100,000 | 4.75% |
| $100,000 - $125,000 | 5.00% |
| $125,000 - $150,000 | 5.25% |
| $150,000 - $250,000 | 5.50% |
| $250,000+ | 5.75% |
| Married, Filing Jointly | |
| Maryland Taxable Income | Rate |
|---|---|
| $0 - $1,000 | 2.00% |
| $1,000 - $2,000 | 3.00% |
| $2,000 - $3,000 | 4.00% |
| $3,000 - $150,000 | 4.75% |
| $150,000 - $175,000 | 5.00% |
| $175,000 - $225,000 | 5.25% |
| $225,000 - $300,000 | 5.50% |
| $300,000+ | 5.75% |
| Married, Filing Separately | |
| Maryland Taxable Income | Rate |
|---|---|
| $0 - $1,000 | 2.00% |
| $1,000 - $2,000 | 3.00% |
| $2,000 - $3,000 | 4.00% |
| $3,000 - $100,000 | 4.75% |
| $100,000 - $125,000 | 5.00% |
| $125,000 - $150,000 | 5.25% |
| $150,000 - $250,000 | 5.50% |
| $250,000+ | 5.75% |
| Head of Household | |
| Maryland Taxable Income | Rate |
|---|---|
| $0 - $1,000 | 2.00% |
| $1,000 - $2,000 | 3.00% |
| $2,000 - $3,000 | 4.00% |
| $3,000 - $150,000 | 4.75% |
| $150,000 - $175,000 | 5.00% |
| $175,000 - $225,000 | 5.25% |
| $225,000 - $300,000 | 5.50% |
| $300,000+ | 5.75% |
In addition to those statewide tax rates, taxpayers in Maryland pay additional income taxes based on the county in which they live (not where they work). County income taxes are assessed at a flat rate, which means the rate does not change based on income level. In other words, there are no brackets for these rates. The table below shows the resident tax rates for every county in Maryland, while nonresidents pay a flat 2.25% rate.
County Income Tax Rates(Updated January 2024)
| Jurisdiction | 2023 Resident Rate | 2024 Resident Rate |
|---|---|---|
| Allegany County | 3.03% | 3.03% |
| Anne Arundel County | 2.70% - 2.81% | 2.70% - 3.20% |
| Baltimore City | 3.20% | 3.20% |
| Baltimore County | 3.20% | 3.20% |
| Calvert County | 3.00% | 3.00% |
| Caroline County | 3.20% | 3.20% |
| Carroll County | 3.03% | 3.03% |
| Cecil County | 2.80% | 2.75% |
| Charles County | 3.03% | 3.03% |
| Dorchester County | 3.20% | 3.20% |
| Frederick County | 2.75% - 2.96% | 2.25% - 3.20% |
| Garrett County | 2.65% | 2.65% |
| Harford County | 3.06% | 3.06% |
| Howard County | 3.20% | 3.20% |
| Kent County | 3.20% | 3.20% |
| Montgomery County | 3.20% | 3.20% |
| Prince George's County | 3.20% | 3.20% |
| Queen Anne's County | 3.20% | 3.20% |
| St. Mary's County | 3.00% | 3.00% |
| Somerset County | 3.20% | 3.20% |
| Talbot County | 2.40% | 2.40% |
| Washington County | 2.95% | 2.95% |
| Wicomico County | 3.20% | 3.20% |
| Worcester County | 2.25% | 2.25% |
The above rates apply to Maryland taxable income. Maryland taxable income is based on your federal adjusted gross income (AGI), but with some differences. While the number of personal exemptions in Maryland will equal the number of exemptions on your federal tax return, the exemption amount is different.
For single filers with an income less than $100,000, or joint filers with an income of less than $150,000, the exemption is $3,200. For single filers with income between $100,000 and $125,000, the exemption falls to $1,600; from $125,000 to $150,000 it falls to $800; and for single filers with AGI greater than $150,000 there is no exemption. For joint filers or heads of household, the exemption is $3,200 up to $150,000 in income, $1,600 from $150,000 to $175,000, $800 up to $200,000 and $0 beyond that.
Additionally, there are a number of deductions and credits available to taxpayers in Maryland. Taxpayers making a contribution to the Maryland Prepaid College Trust or the Maryland Broker-Dealer Investment Plan may claim a deduction of up to $2,500 per year (extra contributions may be carried over to subsequent years). Credits can be claimed for, among other things, income taxes paid in other states and for childcare expenses.
Maryland Sales Tax
The sales tax in Maryland is 6%. Unlike many other states, there are no local sales taxes anywhere in Maryland. Therefore, this rate does not vary depending on your location within the state. It applies to most goods, including personal property like furniture and clothing, but not to most services. However, most food sold at grocery stores or markets is not subject to sales tax at all. Prepared food as served in a restaurant is taxed at the 6% rate.
Maryland Property Tax
There are 179 separate tax authorities that collect property taxes in Maryland, including all 23 counties, the City of Baltimore and 155 incorporated cities. Rates vary depending on the district in which the home is located, but the statewide effective rate (taxes paid as a percentage of home value) is 1.07%. This is slightly above the average among U.S. states of 1.02%. Howard County has the highest effective property tax rates in the state at 1.29%, while Talbot County’s rate of 0.71% is lowest. The City of Baltimore, meanwhile, has an effective property tax rate of 1.65%.
If you are looking to purchase a house or refinance your Maryland residence, take a look at our Maryland mortgage rates guide for all you need to know about mortgages in Maryland.
Maryland Estate Tax and Inheritance Tax
Maryland has both an estate tax and an inheritance tax. Estate taxes are paid by the estate, while inheritance taxes are paid by the heirs. For tax year 2023, the exemption for taxable estates is $5 million. Estates below that level do not need to pay the estate tax. Estates above that exemption pay a rate of up to 16%.
Even if an estate is exempt from the estate tax, heirs may still have to pay the inheritance tax. Property passed on to a child or direct descendent, spouse, parent or grandparent is taxed at a rate of 0.9%. Property passed to siblings is subject to an 8% tax, while property passing to anyone else gets taxed at a rate of 10%.
Maryland Cigarette Tax
Maryland taxes cigarettes at $2 per pack of 20. Cigars face a tax rate of 70% of the wholesale price and other tobacco products face a rate of 30% of the wholesale price.
Maryland Gas Tax
The statewide gas tax in Maryland is 27.1 cents per gallon regular fuel and 36.8 cents per gallon of diesel.
Maryland Alcohol Tax
There is a tax of $0.09 per gallon of beer, $0.40 per gallon of wine and $1.50 per gallon of liquor.
- The Capital of Maryland is Annapolis, which is also home to the United States Naval Academy and was the site of the Continental Congress in 1783-84.
- Maryland has an area of 12,406 square miles, making it roughly the size of Belgium.
- The Chesapeake Bay is the largest estuary in the United States and dominates the geography of Eastern Maryland.
