Maryland State Tax Guide

Maryland state tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact residents.
qh88 Liên kết đăng nhập
(Image credit: Getty Images)

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.]

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.
qh88 Liên kết đăng nhập

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

qh88 Liên kết đăng nhập

(Image credit: Getty Images)

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

Swipe to scroll horizontally
Up to $1,0002%
$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

Swipe to scroll horizontally
Up to $1,0002%
$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?

qh88 Liên kết đăng nhập

(Image credit: Getty Images)
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 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

Swipe to scroll horizontally
Cigarettes$3.75 per pack
Other tobacco products53% 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

qh88 Liên kết đăng nhập
Tax Writer
Katelyn has more than 6 years’ experience working in tax and finance. While she specializes in tax content, Katelyn has also written for digital publications on topics including insurance, retirement and financial planning and has had financial advice commissioned by national print publications. She believes that knowledge is the key to success and enjoys helping others reach their goals by providing content that educates and informs.
With contributions from