State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2020

Maryland State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.

Maryland

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The Bottom Line
Flag of Maryland

Least Tax-Friendly

Middle-class families in the Old Line State get killed when it comes to state and local income taxes. (Baltimore City and every county in Maryland impose a local income tax.) The news is better when it comes to property taxes, with the average property tax rate right around the national average. The Maryland tax system is actually quite friendly to shoppers, though. There's a 6% state sales tax, but that's it – there are no additional local sales taxes to pay.

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 counties and Baltimore City levy additional income taxes.

Sales Tax

6% state levy. No local taxes.

Groceries: Exempt
Clothing: Taxable
Motor Vehicles: Exempt from ordinary sales tax, but taxable under special 6% excise tax
Prescription Drugs: Exempt

Real Property Taxes

In Maryland, the median property tax rate is $1,057 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 36.1¢ per gallon.
Diesel: 36.85¢ per gallon.

Sin Taxes

Cigarettes: $3.75 per pack
Premium cigars: 70% of the wholesale price
Non-premium cigars: 15% of the wholesale price
Pipe Tobacco: 30% of the wholesale price
Other tobacco products: 53% of the wholesale price
Vapor products: 12% sales tax on electronic smoking devices, and 60% sales tax on vaping liquid sold in a container of 5 milliliters or less; no statewide excise tax, but county taxes may apply if they were imposed on or before January 1, 2020.

Beer: $0.09 per gallon
Wine: $0.40 per gallon
Liquor: $1.50 per gallon
A 9% sales tax is also levied.

Annual Car Taxes and Fees

No annual vehicle tax or fee is imposed.

Estate and Inheritance Taxes

Maryland's estate tax exemption is $5 million, plus any predeceased spouse's unused exclusion amount. Rates range from 0.8% to 16%.

While Maryland also has an inheritance tax (with a flat 10% rate), the list of heirs exempt from paying it includes the decedent's spouse, parents, grandparents, children, grandchildren, siblings, son-in-law, daughter-in-law and surviving spouse of a deceased child. In addition, property not exceeding $1,000 passing to any one person is not subject to the tax.


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