State Tax in Maryland

The state tax in Maryland is broken down into four brackets.  The rates for taxes range from two per cent to 4.75 per cent.  Non-residents must also pay a special tax rate of 1.25 per cent, in addition to the 4.75 per cent rate – making a total of six per cent.

Maryland Income Tax Rates Are as Follows -

  • 2 per cent on the first $1,000 of taxable income
  • 3 per cent on taxable income that is between $1,001 and $2,000
  • 4 per cent on taxable income that is between $2,001 and $3,000
  • 4.75 per cent on taxable income that is $3,001 and above
If you are facing a tax audit, or other tax law issues, please consult with a tax attorney in your area to discuss your options. The content of this article is for informational purposes only.

State taxation law allows a piggyback income tax levied by Maryland's 23 counties at rates that range between 1.25 per cent and 3.2 per cent of Maryland taxable income.  This rate is set by local officials and the revenue is returned to the local governments every quarter.

Local income taxes and State taxes are collected on the same forms.
Maryland tax law states taxes are due and payable on April 15th.  If the 15th falls on a holiday or weekend, then the date moves to the next business day following the 15th.

Who Must File -

  • Residents of Maryland who have earned an income
  • Non-residents of Maryland who have earned an income from Maryland.

Tax Law Offers Ten Personal Income Credits For Eligible Maryland Tax Filers.  They Are as Follows -

  • Aquaculture Oyster Float Credit – If you buy an oyster float to grow oysters to restore the population in certain bodies of water, you could receive a credit of up to $500.
  • Child and Dependent Care Credit
  • Earned Income Tax Credit
  • Heritage Structure Rehabilitation Tax Credit
  • Income Taxes paid to other states credit
  • Long term care insurance credit
  • Neighborhood stabilization credit
  • Poverty level credit
  • Preservation and conservation easement credit – If you donate a portion of your land for the purpose of conservation, you may be eligible for this credit.
  • Quality teacher incentive credit – If you are a Maryland public school teacher and have paid tuition for graduate level courses to maintain your certification, you may be eligible for this credit.

i-File Maryland is a new online tool that allows Maryland state taxpayers to file and follow up with their income taxes. Along with the standard forms, the most common schedules and accessory forms are also available for filing online. Taxpayers from the Old Line State may also check the status of their refund online.

The content of this article is for informational purposes only. If you are facing a tax audit, or other tax law issues, please consult with a tax attorney in your area to discuss your options.
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