Maryland Tax Guide: State & County Income Taxes
Navigate Maryland's dual income tax system with state and county levies, plus sales and property tax details for 2025.
Tax Overview
Maryland has a progressive income tax with eight brackets, reaching a top state rate of 5.75%. However, what makes Maryland unique is the additional county income tax that all residents must pay. County rates range from 2.25% to 3.20%, meaning the combined state and county income tax rate can reach nearly 9% for high earners in the highest-taxed counties. This dual system creates one of the heavier income tax burdens in the nation.
Sales tax in Maryland is a moderate 6% with no local additions, providing a uniform rate statewide. Groceries are exempt from sales tax, and the state has expanded certain exemptions over the years. Maryland also does not impose sales tax on most clothing, making it competitive with neighboring states for retail shopping.
Property taxes in Maryland vary significantly by county, with effective rates ranging from about 0.66% in some areas to over 1.2% in others. The statewide average is around 1.05%. The state offers a Homeowners' Tax Credit that provides property tax relief based on income, as well as a Homestead Tax Credit that caps annual assessment increases at 10% (many counties set lower caps). Maryland also offers significant tax credits for historic preservation and renewable energy.
Income Tax
Maryland also imposes county income taxes ranging from 2.25% to 3.20%, pushing the effective combined rate to nearly 9% in some areas.
| Income Range | Tax Rate |
|---|---|
| $0 – $1,000 | 2% |
| $1,001 – $2,000 | 3% |
| $2,001 – $3,000 | 4% |
| $3,001 – $100,000 | 4.75% |
| $100,001 – $125,000 | 5% |
| $125,001 – $150,000 | 5.25% |
| $150,001 – $250,000 | 5.5% |
| $250,001 + | 5.75% |
Sales Tax
Property Tax
Key Deductions in Maryland
- ✓Standard deduction (15% of AGI, min $1,800, max $2,550 single)
- ✓Pension exclusion for retirees (up to $39,500 for age 65+)
- ✓Child and dependent care tax credit
- ✓Earned income tax credit (refundable, up to 45% of federal EITC)
- ✓Student loan debt relief tax credit (up to $5,000)
- ✓Maryland 529 plan contribution deduction (up to $2,500 per beneficiary)
Filing Information
Filing Deadline: April 15
Tax Authority: Comptroller of Maryland
Phone: (410) 260-7980
Website: https://www.marylandtaxes.gov
Frequently Asked Questions
How do Maryland county income taxes work?
Does Maryland tax retirement income?
Is clothing taxed in Maryland?
What is the Maryland student loan tax credit?
Neighboring State Guides
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