Maryland State Taxes: A Simple Guide
Maryland has a state income tax, mandatory local income taxes, sales tax, and local property taxes. This guide explains the basics for individuals in clear, plain language.
ℹ️Important: This is a general overview. Maryland tax rules, rates, and local programs change over time. Always refer to official Maryland guidance or a tax professional for current details.
🦀Maryland state and local income tax
Maryland taxes personal income at both the state level and the county or local level. In general:
- •Residents with income above certain thresholds must file a Maryland income tax return, which includes both state and local income tax calculations.
- •Nonresidents with Maryland-source income may also need to file.
- •Each Maryland county (and some cities) has its own local income tax rate that is added on top of the state rate.
A typical Maryland resident will file a federal Form 1040 and a Maryland return that covers both state and local income tax for the same year if they meet filing requirements.
🛒Sales and use tax
Maryland has a state sales and use tax that applies to many retail sales of goods and some services.
- •Some items (such as certain groceries or prescription medicines) may be exempt or taxed differently.
- •If you buy taxable goods from out of state or online without paying tax, you may owe use tax to Maryland.
Businesses selling taxable goods or services in Maryland usually must collect and remit sales and use taxes to the state.
🏡Property taxes
Property taxes in Maryland are administered primarily by counties and local governments. They are based on the assessed value of real property, such as homes and land.
- •Homeowners receive property tax bills from their county or city.
- •Property taxes help fund local services like schools, public safety, and infrastructure.
- •Some homeowners may qualify for credits, exemptions, or relief programs based on income, age, or other factors.
Because property taxes are local, rates and programs differ across Maryland. Your local tax office is the best source for exact information.
🔗Putting Maryland taxes together
A typical Maryland resident might deal with several layers of taxes:
- •Federal income tax (Form 1040)
- •Maryland state and local income tax
- •State sales and use tax
- •Local property taxes if they own a home
Understanding federal concepts like taxable income and how to file your taxes makes it easier to see how Maryland's rules change your overall tax picture.