Maryland individual income tax
Maryland's individual income tax applies to both residents and non-residents of the state. The tax is calculated based on an individual's federal-adjusted gross income and has varying rates, from 2% to 5.75%.
April 18
Return due in 2023
5.75%
Top marginal tax rate
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Pay income tax online
Visit the official state government’s website to pay individual income tax online.
Visit MarylandTaxes
What is Maryland income tax?
Individual income tax
Individual income tax is a type of direct tax levied by Maryland on individuals that meet the taxable criteria.
Taxable incomes
Maryland taxes incomes from wages, dividends, interests and capital gains.
Tax brackets
Maryland has 8 individual income tax brackets from 2% to 5.75%.
Standard deduction
Standard deduction is $2,400 for singles and $4,850 for joint filers for the year 2022.
Personal exemption
Personal exemption is $3,200 (phased out for income more than $100,000).
2022 tax rates
The following is the list of income tax rates for the tax year of 2022
| Maryland taxable income | Tax rate |
|---|---|
| $0 - $1,000 | 2% |
| $1,000 - $2,000 | 3% |
| $2,000 - $3,000 | 4% |
| $3,000 - $100,000 | 4.75% |
| $100,000 - $125,000 | 5% |
| $125,000 - $150,000 | 5.25% |
| $150,000 - $250,000 | 5.5% |
| $250,000+ | 5.75% |
Individual income tax
The State of Maryland requires you to pay taxes if you are a resident (regardless of the whether they were earned within the state or not) or a non-resident that earns income from Maryland
Types of taxable incomes
The income types on which tax is levied are:
In Maryland, all types of income are generally subject to personal income tax unless they are specifically exempt by state law. This includes, but is not limited to, wages and salary, dividends, capital gains, royalties, and other types of income.
File return
To file a tax return in Maryland, taxpayers must complete and submit a tax return form. The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date.
For a 6-months extension in filing, request by filing Form PV. This is not an extension in payment of taxes.
Form PV
If no tax is due and you requested a federal extension, you don't need to file Form PV.
Due
Pay taxes
Taxes in Maryland are due by 18 April, 2023. Go to the official Comptroller of Maryland website.
In Maryland, you are required to pay quarterly estimated taxes if you income isn't withheld, or your tax liability is more than $500 after witholding.
Estimated taxes are to be made quarterly in instalments by the 15th of April, June, September, and January.
If your income is below $100,000 use tax table to calculate taxes (use page 30).
Tax table
Type of tax
graduated tax
Due
quarterly or annually
Deductions
Tax deductions are a reduction in the amount of income that is subject to taxation. It allows taxpayers to lower the amount of taxable income they have, which in turn reduces the amount of tax they owe. Tax deductions are available for a wide range of expenses, such as charitable donations, mortgage interest, medical expenses, and business expenses.
Credits
A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income.
Exclusions
Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have to pay taxes on this income.
Residency
Residency in Maryland refers to an individual's permanent home or place of residence in the state.
Maryland resident
A Maryland resident is someone who is domiciled in Maryland, or who maintains a permanent place of residence in the state. This means that you are considered an Maryland resident if you live in the state for more than 6 months in a year.
If you are not domiciled in Maryland nor have a permanent residence in the state, but have spent more than seven months of the year in Maryland, then you are considered a resident for tax purposes.
Maryland part-year resident
A Maryland Part-Year Resident is someone who moved into or out of the state during the tax year.
Income earned while the individual was a resident of Maryland is subject to state taxes.
Maryland non-resident
A Maryland Nonresident is someone who does not have a permanent residence in the state.
Nonresidents who receive income from Maryland sources are required to pay Maryland taxes. This includes income from Maryland properties and personal services performed in the state.
Frequently asked questions
Business entities in Maryland
There are several business entities in Maryland
Maryland LLC
Page sponsorWhy we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time