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Maryland State Income Tax: Rates and Who Pays in 2023-2024

The Maryland State Income Tax bracket is less than 6%, but counties can set tax rates. A range of factors impact how much you pay in tax here. Read on to know more.
Maryland State Income Tax
Maryland State Income Tax: Rates and Who Pays in 2023-2024
In this blog, you will take a deep dive into Maryland State Income Tax laws, including facts like Maryland offers property tax credits to its eligible residents and doesn’t tax social security retirement income.
In this article

If your income is $70,000 annually in Maryland, your tax will be $11,177. This makes the average tax rate about 11.67% and the marginal tax around 22%. You can use a tax calculator to calculate Maryland State Income Tax as per your taxable income. It is essential to understand that how much you pay depends on your income, age, and several other factors. 

Does Maryland Have a State Income Tax?

Maryland requires its residents and those whose income source is from Maryland to pay taxes. The sales tax in Maryland is 6%, but the state income tax ranges from 2% to 5.75%. Maryland state income tax bracket is less than 6%, but counties can set tax rates. The lowest Maryland state income tax rate is 2%.

Maryland provides many tax deductions and credits to reduce tax liability. These include child and dependent care credit, standard deduction, itemized deduction, income tax credit, and college savings tax deduction.

Maryland State Income Tax

Maryland State Income Tax – How much will the income after tax in Maryland with Filing Status

Annual IncomeFiling Status –
Single
Filing Status –
Married Filing Jointly
Filing Status –
Head of Household
$12000$11,746$11,982$11,982
$15000$14,399$14,867$14,867
$20000$18,661$19,630$19,570
$22000$20,366$21,535$21,275
$30000$27,051$28,745$28,095
$35000$31,213$33,007$32,338
$36000$32,046$33,860$33,171
$42000$37,041$38,975$38,166
$45000$41,827$41,532$40,663
$48000$42,036$44,059$43,161
$52000$45,366$47,389$46,491
$54000$48,568$50,719$49,821
$60000$51,498$54,049$53,151
$62000$52,963$55,714$54,816
$65000$55,161$58,211$57,313
$70000$58,823$62,374$61,476
$75000$62,486$66,536$65,638
$80000$66,148$70,699$69,331
$85000$69,811$74,861$72,993
$90000$73,473$79,024$76,656
$92000$74,938$80,689$78,121
$95000$77,136$83,186$80,318
$114000$90,793$98,549$94,125
$115000$91,503$99,281$94,837
$140000$109,229$117,594$112,650
$150000$116,304$124,919$119,775
$160000$123,368$132,244$126,900
$165000$126,893$135,897$126,893
$190000$143,958$154,137$148,149
$185000$140,833$150,497$144,653
$260000$186,764$203,883$191,274
$300000$210,464$232,083$215,074
$350000$240,089$262,881$244,727
$120000$95,053$102,944$98,400
$135000$105,692$113,931$109,087
$170000$130,418$139,547$134,003
$180000$137,468$146,847$141,103
$250000$180,825$196,833$185,324
$28000$25,386$27,040$26,390
$32000$28,716$30,450$29,800
$40000$35,376$37,270$36,501
$44000$38,706$40,680$39,831
$53000$46,198$48,221$47,323
$56000$48,568$50,719$49,821
$58000$50,033$52,384$51,486

Maryland State Income Tax Rates And Tax Brackets

Maryland Income Tax Range for residents who are single filers, married filing separately, or dependent taxpayers:

Maryland Resident IncomeTax rates 
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

Maryland Income Tax Range for residents who are joint filers, heads of household and qualifying widows/widowers:

Maryland Resident IncomeTax rates 
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

What is Maryland’s Standard Deduction?

The tax year 2022-23 standard deduction is the highest value of $2,400 for single taxpayers and $4,850 for the head of a household, a surviving partner, and taxpayers filing jointly. There are also some other forms of deductions offered by the Maryland government, such as:

Itemized Deductions

Maryland taxpayers might choose to itemize their deductions similarly as they did on their federal return. However, it is optional for taxpayers who itemize their federal deductions and do not need to use itemized deductions on their Maryland income tax return.

Child Care Deduction

Taxpayers with dependent children can deduct up to $3000 for one child and $6000 for up to two or more dependents.

Adoption Expenses Deduction

Taxpayers who adopt a child can benefit up to $5,000 from public or nonprofit agencies. If the children have special needs, they can deduct taxes up to $6000.

College Savings Deduction

Taxpayers can deduct up to $2,500 per beneficiary if they contributed to a Maryland College Investment Plan account or Maryland Prepaid College Trust. 

Classroom Supplies Deduction

Teachers may subtract taxes up to $250 from kindergarten through 12th-grade classrooms in unreimbursed classroom supplies in Maryland.

First-Time Homebuyer Savings Deduction

Taxpayers with a First-Time Homebuyer Savings Account may deduct taxes up to $5,000. It depends on the amount they contribute each year. It also includes the interest in that deduction. You can claim this deduction at most $50,000 for up to 10 years.

Charitable Donation Deduction

The amount one contributes to personal hygiene products and donations to charity may also be included in the deductibles.

How to Calculate Maryland State Income Tax?

The most simple form of calculation is to use a tax calculator app. It will collect all information about your financial situation and offer you an approximate result. You can also check the table above to understand better your tax bracket and how much you must pay. Always use a trusted source to discuss tax return decisions. You can also ask a financial consultant for tax filing and returns. Consultants might cost you a bit extra money but save you a ton by using deductions and credit. 

Always consult a tax professional or seek online assistance like Beem which provides easy online tax-filing services.

Do I Have to Pay Maryland State Income Tax?

A Maryland resident must file an income tax return if you are required to file a federal income tax return. Your total income must equal or exceed the level of your filing status in Filing Requirements and also in the Maryland resident tax booklet in Instructions 1. People who move overseas or are temporarily unavailable but have yet to constitute a change of domicile still need to file their income tax return in Maryland.

Also Read: Colorado State Income Tax

Property Taxes and Property Tax Rates

All real property is paid to the property tax in Maryland. Commonly, real estate owned and used by spiritual, charitable, or academic organizations or property owned by the federal, state, or local governments is excused.

Property tax bills are given in July or August of every year by the 23 counties and the 155 incorporated municipalities in Maryland. Tax bills are generated for the next fiscal year and are applicable as of July 1.

Real property is rechecked on a 3-year process by the actual property valuation department. Every year, one-third of all property in Maryland is examined. It includes an exterior physical inspection of the property as well.

Capital Gains Taxes

Maryland taxes capital gains as regular income.

Am I a Resident for Maryland Income Tax Purposes?

The resident status of Maryland divides its residents into two parts —permanent resident and statutory resident. To find out which of these categories you fall under, read on. 

A permanent resident of Maryland is a person:

  • Who has a permanent home (domicile) is or was in Maryland
  • May have a permanent address outside Maryland but maintained a place of abode in MD for more than six months. And the person was physically present in the state for 183 days or more. (also known as a statutory resident) 

Part-year resident status rules

An individual who started or completed Maryland residency during the calendar year. 

Non-resident status rules

A person domiciled in a state other than Maryland (unless the person is a statutory resident).

Where is My Maryland State Income Tax Refund?

You must know your social security number and amount to check your refund status promptly. You can check the Comptroller of Maryland’s website or contact the free number to get an update about refund inquiries. It usually takes ten days to receive a refund, so wait for ten days before filing a complaint.  

Maryland State Income Tax

Several things can cause a Maryland refund delay. These include:

  • If the department requires verification about the information reported on your return or requests further information.
  • Mathematical errors in your tax return or other adjustments.
  • You used more than one form type to file your return.
  • Your return needed to include data or complete.

Why Did My Maryland State Income Tax Increase?

A range of factors can cause an increase in your income tax in Maryland. If some deductibles are no longer available for your tax filing or you are no longer eligible for some credit while tax Returns. It can shoot up your income tax amount. If your income increases or you are divorced, it can also affect your income tax. You must understand the tax breaks, deductibles, and credits to get a maximum refund while filing taxes.

Maryland Sales Tax 

Maryland imposes a state sales tax of 6% on all its citizens. There is no general local sales tax in Maryland. But it also has a 6% user tax applied to tax-free purchases made out of state. It must be reported and paid by filing the state’s use tax return.

Five things to know about Maryland Income Tax

Here are the five things about Maryland state tax you might find interesting. 

  • Maryland offers property tax credits to qualified residents and doesn’t tax Social Security retirement earnings.
  • Maryland’s Renters’ Tax Credit program offers up to $1,000 yearly for eligible residents. Some income limits exist, but the credit is not restricted to renters over 65.
  • Maryland’s estate exemption is $5 million, so you don’t need to be concerned about paying this tax if your estate’s value is less than that.
  • There are two new subtractions in Maryland State Income Tax: a subtraction up to $100,000 for resident taxpayers over 100 years old and a subtraction for licensed cannabis company costs.
  • Due to budget constraints and staff reductions, Maryland calculates processing of paper returns for up to 30 days. E-filed returns may take much less time to process. Be aware that other factors can additionally delay a return.

Check out Beem Tax Calculator to get a quick and accurate estimate of your federal and state tax refund for free.

Maryland State Income Tax FAQs

Q. Is Maryland a high-tax state?

A. No, Maryland is not a high-tax state.

Q. Is Maryland a tax-friendly state?

A. Yes, Maryland is a tax-friendly state.

Q. Is Maryland an excellent place to live for taxes?

A. Maryland tax system ranks 4th on the 2023 State Business Tax Climate Index. It offers a 6 percent state tax but many deductibles and credit benefits.

Q. How much of my paycheck goes to taxes in Maryland?

A. The tax percentage of your paycheck is from 2 to 5.75 percent. It depends on your income range, which is from 1000$ to 250,000$.

Q. Is Maryland tax income earned in another state?

A. The nonresident tax should equal the lowest income tax rate given by residents in Maryland. Tax filing depends on the domicile address of the person. 

Q. Does the state of Maryland tax social security income?

A. No, all Social Security retirement benefits, including social security numbers, are excluded from taxation in Maryland.

Q. Can Maryland state income tax go up?

A. Maryland state income tax percentage depends on the government. It might grow with an increase in inflation. 

Q. Do seniors have to pay state income tax in Maryland?

A. Residents over 65 years of age in Maryland are exempted from taxes.

Q. Does Maryland have a state income tax for the military?

A. The military pay is exempted from taxes in Maryland. 

Q. What are Maryland state income taxes for LLCs?

A. For LLCs, Maryland imposes an 8.25% of corporate tax.

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Picture of Prem Kishan

Prem Kishan

A seasoned Product Manager who thrives on making a meaningful impact within the organization, Prem is deeply passionate about tackling intricate problems using cutting-edge technology and is a specialist in tax content.

Editor

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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