Maryland State Taxes

Maryland Income Tax

Maryland levies income taxes at both the state and local levels (county and Baltimore City). Beginning in 2025, Maryland transitioned to a 10-bracket system, ranging from 2% to 6.5%.

Tax Rates – Single, Married Filing Separately & Dependents

Taxable Net Income	Maryland Tax
$0 – $1,000	2%
$1,000 – $2,000	3%, plus $20
$2,000 – $3,000	4%, plus $50
$3,000 – $100,000	4.75%, plus $90
$100,000 – $125,000	5%, plus $4,697.50
$125,000 – $150,000	5.25%, plus $5,947.50
$150,000 – $250,000	5.5%, plus $7,260
$250,000 – $500,000	5.75%, plus $12,760
$500,000 – $1M	6.25% plus $27,135
$1M or more	6.5% plus $58,385

Tax Rates – Married Filing Jointly, Head of Household or Qualifying Widow(er)

Taxable Net Income	Maryland tax
$0 – $1,000	2%
$1,000 – $2,000	3%, plus $20
$2,000 – $3,000	4%, plus $50
$3,000 – $150,000	4.75%, plus $90
$150,000 – $175,000	5%, plus $7,072.50
$175,000 – $225,000	5.25%, plus $8,322.50
$225,000 – $300,000	5.5%, plus $10,947.50
$300,000 – $600,000	5.75%, plus $15,072.50
$600,000 – $1.2M	6.25% plu $32,322.50
$1.2M or more	6.5% plus $69,822.50

Local income tax is collected on the state income tax return as a convenience for local governments. The amount you pay in local income taxes is calculated as a percentage of your taxable income and varies based on where you live. Two counties, Anne Arundel and Frederick, have multiple rates based on the resident’s taxable income. All other local governments charge a flat rate regardless of your income level.

Who Must File?

Generally, you must file a Maryland income tax return (Form 502) if you are or were a resident, and you are required to file a federal tax return. Part-year residents are also required to file. If you are a non-resident who had income from Maryland resources, you should file Form 505, Nonresident Income Tax Return, or Form 515.

Maryland Sales Tax

Maryland has a state sales tax rate of 6% and does not levy sales taxes at the local level.

Maryland Property Taxes

Maryland has one of the highest property tax rates in the country, averaging 1.02% of a property’s assessed value (county level). Its 23 counties, Baltimore City, and 155 incorporated cities each issue property tax bills between July and August annually.

The median property tax paid in Maryland is approximately $3,880. Howard County has the highest property tax at an average of $6,650. The lowest amount is $1,648 in Somerset County.

Maryland Property Tax

Highest	$6650
Median	$3880
Lowest	$1648

Yearly Cost Per Resident

Maryland Tax Holidays

Maryland now hosts one tax-free events annually:

• Maryland Energy Weekend. This is held on Saturday (starting at 12:01 AM) immediately preceding the third Monday in February, through the third Monday (ends at 11:59 PM) of the month. Certain Energy Star products are exempt from sales tax during this holiday.

Maryland Tax Relief

Unpaid Maryland income taxes can become increasingly difficult to manage as penalties and interest add to your outstanding balance. The Comptroller of Maryland may also pursue collection efforts when taxes remain unpaid. Whether you’ve fallen behind because of missed tax filings, financial hardship, or business-related tax issues, addressing your tax debt promptly may give you more opportunities to resolve the problem before collection activity intensifies.

If you’re unable to pay your Maryland tax balance in full, there may be options available to help you manage what you owe. Depending on your financial situation and eligibility, you may be able to establish a payment plan, request an Offer in Compromise, or qualify for low-income assistance. Working toward a resolution early may also help you avoid or address collection actions such as tax liens, wage garnishments, and bank levies.

Knowing how Maryland approaches delinquent tax debt and understanding the resolution options that may be available can help you make informed decisions about your next steps. Addressing your balance sooner can put you on a clearer path toward resolving your Maryland tax issues.

Common Maryland State Tax Problems

How Maryland Collects Tax Debt

If you owe Maryland income taxes, the state will send a Personal Income Tax Computation Notice that informs you of a balance due.

If you do not pay or respond, the state will then send a Notice of Income Tax Assessment. This outlines the penalties and interest now due, as well as your appeal rights. Failure to set up a payment plan or other payment arrangements will lead to a Notice of Collection Action.

Maryland collection actions may include:

• Wage garnishment
• Bank levy
• Tax lien
• Tax refund offset

Individual Income Tax Computation Notice sent

Notice of Income Tax Assessment (NITA) issued

Account sent to collections

Maryland State Tax Relief Options

Maryland offers several relief options, including:

• Payment Plans – You can set up a payment plan online, by phone, or email.
• Offer in Compromise – If eligible, you may be able to settle your Maryland tax debt for less than you owe through an Offer in Compromise.  
• Fresh Start – Formally incarcerated taxpayers may be eligible for the Maryland Fresh Start program, which places them on a payment plan and waives penalties and interest. The program is only available for tax years 2025-2029.
• Low-Income Relief – Certain low-income households may be eligible to suspend payments and collections on unpaid tax debt through the Maryland Hardship Relief or Low-Income Taxpayer Relief programs.

If you’re experiencing financial hardship and can’t pay your Maryland income tax bill, contact the Comptroller’s Office as soon as possible to avoid collection actions.

When to Seek Tax Relief Help

If you’re experiencing any of the following, it may be time to explore your tax relief options:

The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.

Maryland Tax Relief FAQs

How do I set up an Maryland payment plan?

Beginning September 1, 2026, Maryland taxpayers can set up a payment plan through Maryland Tax Connect. If you are ineligible to set up a payment plan online, or prefer not to use the system, you can also return the bottom portion of your tax bill to request a payment plan. If you need additional assistance, you can call (888) 674-0116 or email cdcollectionind@marylandtaxes.gov.

If emailing, please include your name, address, last four digits of your Social Security number (SSN), case or notice number, as well as your phone number.

What happens if I ignore Maryland tax notices?

If you don’t pay your Maryland income taxes and ignore repeated notices, the state may garnish your wages, file a tax lien, seize your property (levy), or seize future tax refunds.

Can Maryland garnish my wages for unpaid taxes?

Yes, Maryland can garnish your wages if you owe back taxes. The state can garnish significantly more than the typical 25%, leaving you little to live on.

Can Maryland levy my bank account?

Yes. The Maryland Comptroller’s Office can seize funds from your bank accounts if you have ignored payment requests and have not set up a payment plan.

How long does Maryland have to collect back taxes?

Maryland generally has 10 years from the date of tax assessment to actively collect unpaid income taxes. If the state files a formal property lien before the collection period expires, however, the collection period may be extended until the debt is resolved.

Maryland Tax Resources

If you need assistance preparing your Maryland state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.

You can also visit the Comptroller of Maryland website for additional resources.

• Make a Tax Payment
• Where’s My Refund?
• Individual Tax Forms
• Income Tax Information: 410-260-7980 or 800-638-2937