Maryland State Tax Guide
Maryland state tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact residents.
![Maryland State flag flying in the sky for Maryland state tax guide](https://cdn.mos.cms.futurecdn.net/iCCeqFeHF9BQYHBo98Le5D-415-80.jpg)
Maryland State Tax: Overview
Maryland's state income tax brackets don't reach 6%, but counties can impose their own tax rates. And while the lowest Maryland state income tax rate is 2%, workers with more than $3,000 of taxable income could pay at least 4.75%.
Gas taxes are high in Maryland, too. And the state has both an inheritance and an estate tax. However, Maryland offers property tax credits to eligible residents and doesn't tax Social Security retirement income.
[Data for this state tax guide was gathered from several sources including the U.S. Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
![https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png](https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-320-80.png)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Maryland income taxes
Maryland Tax on Retirement Benefits: Social Security retirement benefits and Railroad Retirement benefits are tax-exempt. Residents 65 or older may be able to exclude some forms of qualified retirement income. For 2022, Maryland's pension exclusion was $34,300.
Maryland Income Tax Range: Single filers, married filing separately, or dependent taxpayers
Up to $1,000 | 2% |
$1,001 to $2,000 | $20 plus 3% of the amount over $1,000 |
$2,001 to $3,000 | $50 plus 4% of the amount over $2,000 |
$3,001 to $100,000 | $90 plus 4.75% of the amount over $3,000 |
$100,001 to $125,000 | $4,697.50 plus 5% of the amount over $100,000 |
$125,001 to $150,000 | $5,947.50 plus 5.25% of the amount over $125,000 |
$150,001 to $250,000 | $7,260.00 plus 5.5% of the amount over $150,000 |
More than $250,000 | $12,760.00 plus 5.75% of the amount over $250,000 |
Maryland Income Tax Range: Joint filers, head of household and qualifying widows/widowers
Up to $1,000 | 2% |
$1,001 to $2,000 | $20 plus 3% of the amount over $1,000 |
$2,001 to $3,000 | $50 plus 4% of the amount over $2,000 |
$3,001 to $150,000 | $90 plus 4.75% of the amount over $3,000 |
$150,001 to $175,000 | $7,072.50 plus 5% of the amount over $150,000 |
$175,001 to $225,000 | $8,322.50 plus 5.25% of the amount over $175,000 |
$225,001 to $300,000 | $10,947.50 plus 5.5% of the amount over $225,000 |
More than $300,000 | $15,072.50 plus 5.75% of the amount over $300,000 |
(Note: Local income taxes may also apply.)
How much are property taxes in Maryland?
In Maryland, the average effective property tax rate is 1.06%.
Maryland Property Tax Breaks for Retirees
Local governments can establish a property tax deferral program that allows Maryland residents 65 or older to defer the increase in their tax bill for county taxes. The deferred taxes become a lien on the property and must be repaid when the property is transferred.
Maryland's Renters' Tax Credit program provides up to $1,000 annually for qualifying residents. Income limits apply, but the credit is not limited to renters over age 65.
Maryland motor fuel taxes
Gasoline: $0.47 per gallon
Diesel: $0.4775 per gallon
Maryland taxes on alcohol and tobacco
Cigarettes | $3.75 per pack |
Other tobacco products | 53% of wholesale price (with exceptions) |
Vapor Products | 12% to 60% of retail price |
Beer | $0.09 per gallon |
Wine | $0.40 per gallon |
Liquor | $1.50 per gallon |
(Note: Alcohol sales are also subject to a 9% sales tax rate.)
Maryland estate and inheritance taxes
Maryland has estate and inheritance taxes ('Death Taxes'). Maryland's estate exemption is $5 million, so you don't need to worry about paying this tax if your estate is valued under that amount.
However, Maryland's inheritance tax, which is 10% of the clear value (fair market value minus qualified expenses), applies to some heirs when the value of the property exceeds $1,000. Many descendants (including but not limited to spouses and children) are exempt from paying inheritance taxes in Maryland.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.
-
Confused by Annuities? Making Sense of the Different Types
Many investors aren't sure if annuities are a good option for meeting financial goals. Let's look at the different categories, along with their pros and cons.
By Kris Maksimovich, AIF®, CRPC®, CPFA®, CRC® Published
-
Talkin' 'Bout My Generational Wealth: Baby Boomers
With retirement, each generation has different priorities and challenges. For Baby Boomers, it's a matter of ready or not, here it comes.
By Alvina Lo Published
-
IRS Ends Inherited IRA Confusion: Annual RMDs Required for Many
IRAs The agency has resolved a major point of uncertainty for inherited IRA beneficiaries.
By Kelley R. Taylor Last updated
-
$145 Million in ‘Senior Freeze’ Checks Mailed
Property Tax What you need to know about New Jersey's property tax relief program for older adults.
By Kate Schubel Published
-
TaxAct Class Action Settlement: Details to Know
Tax Filing A multimillion-dollar settlement over alleged data privacy violations affects some TaxAct users.
By Kelley R. Taylor Last updated
-
An IRA Contribution Option You Might Not Know
IRAs Retirement savings might not have to take a back seat just because your partner doesn't earn income.
By Kelley R. Taylor Last updated
-
Project 2025 Tax Overhaul Blueprint: What You Need to Know
Tax Proposals Some people wonder what Project 2025 is and what it suggests for taxes.
By Kelley R. Taylor Last updated
-
The Taxes That Come out of Your Paycheck
Payroll Tax Your take-home pay is often less than expected due to several payroll tax withholdings you need to know.
By Kelley R. Taylor Last updated
-
Seven States Where Gas Tax Increased July 1
Gas Taxes Since July has arrived, drivers in several states are facing a gas tax hike.
By Kelley R. Taylor Last updated
-
401(k) Withdrawal Penalty Rule Changes for 2024
Tax Rules More people are taking early emergency withdrawals from retirement savings accounts. New rules might offer some relief.
By Kelley R. Taylor Last updated