Tool | August 2016

State-by-State Guide to Taxes

Compare state tax rates and rules -- on income, ordinary purchases, gas, "sin" products, property, and more -- across the U.S.

Maryland

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The Bottom Line
Map of Maryland

Not Tax-Friendly

Maryland takes aim at income: Counties can levy their own income tax on top of the state's in Maryland, and these can be as high as 3.2%. But the Old Line State's real estate taxes are middle-of-the-road and the state has no local levies on top of its flat 6% sales tax.

Sales Tax

6% (food, prescription and nonprescription drugs are exempt).

Income Tax Range

Low: 2% (on less than $1,000 of taxable income)

High: 5.75% (on more than $250,000 of taxable income for single filers; more than $300,000 for joint filers)

Maryland's 23 counties and Baltimore City may levy additional income taxes ranging from 1.75% to 3.20% of taxable income; per the Tax Foundation, the average levy is 2.9%.

See Kiplinger.com’s Retiree Tax Map to learn how Maryland taxes Social Security income and other forms of retirement income.

Motor Fuel Taxes

Gasoline: $0.34 per gallon.
Diesel: $0.34 per gallon.

Property Taxes

The median property tax on Maryland's median home value of $288,500 is $3,154.

See Kiplinger.com’s Retiree Tax Map for details on tax breaks for seniors in Maryland.

Vehicle Taxes

Sales tax is collected.

Sin Taxes

Beer: $0.49 per gallon
Wine: $1.35 per gallon
Liquor: $4.64 per gallon

Cigarettes: $2.00 per pack
Other tobacco products: 15% of the wholesale price. E-cigarettes/juice: Montgomery County taxes 30% of wholesale price.

Travel Taxes

Hotel: No statewide lodging tax, though sale tax is due. Localities may levy taxes, however; Baltimore City's is 7.5%, Anne Arundel County: 12%, Baltimore County: 8%, Montgomery County: 7%, Prince George’s County: 5%, Queen Anne’s County: 5%

Rental cars: 11.5%. No additional sales tax is levied.

Taxes On Wireless Service

12.7%

Inheritance and Estate Taxes

Maryland collects an inheritance tax. Property passing to a spouse, child or other lineal descendant, spouse of a child or other lineal descendant, parent, grandparent or sibling is exempt from taxation. Property passing to other individuals is subject to a 10% tax.

Maryland estate tax is imposed on estates exceeding $2 million, which will be increased to $3 million in 2017 and $4 million in 2018. In 2019 and beyond, Maryland will adopt the Federal threshold. The maximum tax rate is 16%.

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