Tool | October 2017

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

Least Tax-Friendly

The Old Line State takes aim at income: 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%. And those rates are on top of the state's take. Maryland's real estate taxes are middle-of-the-road and sales tax a flat 6% sales tax, but those can't make up for some of the highest effective income taxes in the country. It's one of Kiplinger's top ten least tax-friendly states.

Sales Tax

State levy of 6%.

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

Effective income tax rate: 6.1%/individual, 6.6%/joint

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: $0.35 per gallon.

Property Taxes

The median property tax on Maryland's median home value of $286,900 is $3,142.

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

12.83%

Inheritance and Estate Taxes



Maryland estate tax is imposed on estates exceeding $3 million, which will be increased to $4 million in 2018. In 2019 and beyond, Maryland will adopt the Federal threshold. Rates range from 5.6% to 16%.

Maryland collects an inheritance tax, but 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.

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