Maryland Tax

Maryland State Tax

Maryland Income Tax

The Code of Maryland Regulations Title 3 details the information and regulations about the Maryland state tax code. The state imposes a number of taxes such as income tax, sales tax, and property tax on individuals and businesses based in the state.

Income Tax

Maryland income tax rates are arranged in seven brackets of progressive order. The state collects 2% income tax rate on incomes up to $1000. The rate continues to increase until the income exceeds $500,000 which is charged with the maximum tax rate of 5.5%. Taxpayers are required to file their state income tax returns to the Maryland Comptroller on or before Tax Day on April 15.

The corporate income tax is the business equivalent of personal income tax.  Aside from the federal corporate income tax, the State of Maryland collects a flat 8.250% of the gross income of companies and businesses.

Maryland Sales Tax

Maryland collects 6% sales tax on purchases of tangible personal properties and select services. Like most states, Maryland exempts purchases of groceries and prescription drugs from tax. However, unhealthy food like soda, candies, and alcohol are not included in this sales tax exemption. In fact, alcoholic beverages are subject to 9.6% sales tax in the state.

There are no local sales tax and specials sales tax jurisdictions in Maryland. The state observes tax holidays on August, wherein sales tax is lifted from most back to school items.

Maryland Property Tax

The average property tax collected in Maryland is 0.87% of property’s fair market value. Howard County levies the highest state property tax while Garrett County collects the lowest state property tax rate.