Maryland State Income TaxesMaryland collects income taxes on April 15th, much the way the IRS and 44 other states do.
This page:
• Lists basic Maryland state tax information
• Links to the major Maryland income tax forms
• Shows you how you can save time and money by e-filing
Maryland state taxes at a glance:Tax Rate Range: Low - 2%; High - 4.75%
Income Brackets: Lowest - $1,000; Highest - $3,000
Number of Brackets: 4
Personal Exemptions: Single - $2,400; Married - $4,800; Dependents - $2,400; Seniors - $2,400
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Filing your Maryland state income tax returnFirst, you must use the same filing status on the Maryland return as is used on the Federal return. There are some exceptions top this rule, but your situation must be pretty extreme in order to qualify.
On the other hand, if you itemize on your federal tax return, you may itemize on your state tax return, butyou are certainly not required to if the standard deduction is greater than the itemized.
However, if you use the standard deduction on your federal return, you must usethe standard deduction on the Maryland return.
Credits allowed in Maryland are numerous. You can check the website for all 11 or consult the list below for the more common ones.
• Child and Dependent Care Credit
• Clean Energy Incentive Credit
• Earned Income Tax Credit
• Income Taxes Paid to Other States Credit
• Quality Teacher Incentive Credit
As a Maryland resident, income from all sources is taxable - this includes retirement income even if it is from another state. However, if you were 65 years old or older on the last day of the tax year, you may be eligible for a pension exclusion for a portion of that income.
Since capital gains are included in your federal adjusted gross income and your Maryland state tax return uses this figure as the beginning of your tax return, they are taxed at the same rate as the rest of your income.
In addition to your state taxes, counties of Maryland and Baltimore levy local "piggyback" income taxes at rates between 1.25 and 3.15 percent of Maryland taxable income. Local income taxes are withheld and collected on the same forms as state income taxes.
Sidebar
You can work on your Maryland tax return online while filing your federal return (you can work on it for free, and pay nothing until you are ready to file).
Note: if you are filing more than one state return, you must file a paper return for each additional state, as TurboTax for The Web only allows one state prep.
Maryland income tax formsThe main Maryland tax forms are:
Form 502 | 2006 Maryland Individual Income Tax Return
Form 502CR | Personal Income Tax Credits
If you need Maryland income tax forms that are not listed here, you can download them from the Maryland tax forms site.
Or, just simply e-file!
Additional MD state taxes helpIf you need help with your federal tax return, start with our basic guide to tax filing.
For additional help with filing MD income tax returns, see the official site of the Comptroller of Maryland.
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