BizFilings Logo
800-981-7183

Understanding Personal Income Tax in Maryland

Filed under State Taxes. Fact checked on February 12, 2013.

Article Tools

Maryland personal income tax is discussed.

If you are a resident or non-resident of Maryland and receive taxable income individually from property owned or business transacted in Maryland, you are subject to tax on net income. Therefore, if you are operating your business as an S corporation, partnership, limited liability company, or sole proprietorship, you will be subject to a personal income tax on your business income that passes through to you. In addition, local income taxes apply in Maryland, so be sure to check with your local government.

The following rates are applicable in tax year 2012 to Maryland taxable net income for taxpayers filing as single, married filing separately, and dependent taxpayers:

Maryland Taxable Income Maryland Tax Imposed
Up to $1,000 2%
$1,001 to $2,000 $20 plus 3% of excess over $1,000
$2,001 to $3,000 $50 plus 4% of excess over $2,000
$3,001 to $100,000 $90 plus 4.75% of excess over $3,000
$100,001 to $125,000 $4,697.50 plus 5% of excess over $100,000
$125,001 to $150,000 $5,947.50 plus 5.25% of excess over $125,000
$150,001 to $250,000 $7,260 plus 5.5% of excess over $150,000
$250,001 and over $12,760 plus 5.75% of excess over $250,000

The following rates are applicable in tax year 2012 to Maryland taxable net income for taxpayers filing joint returns, as head of household, or as qualifying widows/widowers:

Maryland Taxable Income Maryland Tax Imposed
Up to $1,000 2%
$1,001 to $2,000 $20 plus 3% of excess over $1,000
$2,001 to $3,000 $50 plus 4% of excess over $2,000
$3,001 to $150,000 $90 plus 4.75% of excess over $3,000
$150,001 to $175,000 $7,072.50 plus 5% of excess over $150,000
$175,001 to $225,000 $8,322.50 plus 5.25% of excess over $175,000
$225,001 to $300,000 $10,947.50 plus 5.5% of excess over $225,000
$300,001 and over $15,072.50 plus 5.75% of excess over $300,000

Warning

Maryland counties may impose a county personal income tax based on a percentage of the Maryland tax rate. Check with your local tax authority or the Comptroller of Maryland to find out if extra taxes apply to you.

Article Tools

blog comments powered by Disqus
Next Article in Tax Center
Close