Maryland State Taxes
Quick Tax Facts
Income Tax: 2% – 5.75%
State Sales Tax: 6%
Median Property Tax: $2,772
Overview
Maryland has a lot to offer families, including plenty of outdoor activities and some of the best public schools in America. The cost of living, however, is well above the national average and it’s not the most tax-friendly. Maryland has some of the highest property tax rates in the country and income taxes are pretty steep, too. If you’re into shopping, however, you’ll be happy to learn that Maryland doesn’t charge local sales tax.
Maryland Income Tax
Maryland levies income taxes at both the state and local levels (county and Baltimore City). Below are the state income tax rates, which range between 2% and 5.75%.
| 2023 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 |
| Over $250,000 | 5.75%, plus $12,760 |
| 2023 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 |
| Over $300,000 | 5.75%, plus $15,072.50 |
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. Local income taxes for the 2023 tax year range between 2.25% and 3.20%.
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 .87% 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 $2,772 (based on a home value of $318,600). Howard County has the highest property tax at an average of $4,261. The lowest amount is $1,173 in Garrett County.
| Highest | $4261 |
|---|---|
| Median | $2772 |
| Lowest | $1173 |
Yearly Cost Per Resident
Maryland Tax Holidays
Maryland hosts two tax-free events annually, including:
- 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. In 2024, the event will run from February 17-19. To learn more, check out the FAQs for this event.
- Tax-Free Week. Unlike other states which host tax-free weekends for back-to-school shopping, Maryland offers tax-free shopping for an entire week in August. Most clothing, footwear, and accessories sold for $100 or less are tax-exempt. Backpacks are exempt up to $40. In 2024, Tax-Free Week will run from August 11 through 17. For more details, please check out the full list of exempt items.
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
