🇺🇸 Maryland Income Tax — 2026 UPDATE

Maryland Income Tax Rates & Brackets (Tax Year 2025 — Filed in 2026)

⚠️Informational only — not legal or tax advice.

Tax year covered: 2025 (returns filed in 2026)
Applies to: Income earned January 1 – December 31, 2025
Returns filed: January – April 2026
Last verified: February 18, 2026

Maryland State Income Tax

Table of Contents

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Quick Reference

Does Maryland have income tax? Yes
Tax structure: Progressive (10 brackets)
State tax rates: 2% to 6.50%
Local income tax: Yes – all 23 counties and Baltimore City levy a local income tax (2.25%–3.30%)
Standard deduction (Single / MFS / Dependent): $3,350
Standard deduction (MFJ / HOH / Qualifying Surviving Spouse): $6,700
Official source: https://www.marylandcomptroller.gov

Key Takeaways

  • Residents: Maryland residents pay state income tax on all income from all sources, plus a county/city local income tax based on their place of residence.
  • Non-residents: Non-residents pay Maryland income tax only on Maryland-source income, plus a special nonresident tax rate of 2.25% (in lieu of local tax).
  • Tax rates: Progressive state rates from 2% to 6.50% (10 brackets), with two new high-income brackets added for tax year 2025.
  • Local income tax: Yes — every resident pays local income tax to their county or Baltimore City (rates range 2.25%–3.30%). Local tax is reported on the state return for administrative convenience.
  • Capital gains surtax: An additional 2% tax applies to net capital gain income for taxpayers with federal AGI over $350,000 (effective tax year 2025).
  • Reciprocity: Maryland has reciprocal agreements with Pennsylvania, Virginia, West Virginia, and Washington D.C. (wages and salaries only).
  • Primary forms: Form 502 (residents/part-year residents), Form 505 (non-residents), Form 515 (non-residents subject to county income tax).

Quick Questions About Maryland Income Tax

What is the Maryland income tax rate for 2025?
Maryland has a progressive state income tax with 10 brackets, with rates ranging from 2% to 6.50%. In addition, all residents pay a local income tax to their county or Baltimore City, ranging from 2.25% to 3.30%.

Does Maryland have state income tax?
Yes. Maryland imposes a progressive state income tax on all residents and on non-residents who earn income from Maryland sources.

What are the income tax brackets in Maryland?
For Tax Year 2025, Maryland has 10 state income tax brackets ranging from 2% (on the first $1,000 of taxable income) to 6.50% (on taxable income above $1,000,000 for single filers / $1,200,000 for joint filers). Two new top brackets (6.25% and 6.50%) were added effective January 1, 2025. See the complete bracket tables below.

Is Social Security taxed in Maryland?
No. Maryland does not tax Social Security benefits.

Does Maryland tax retirement income?
Maryland taxes most retirement income (pensions, 401(k), IRA distributions). However, taxpayers age 65 or older, or who are totally disabled (or whose spouse is totally disabled), may qualify for a pension exclusion of up to $41,200 per taxpayer for Tax Year 2025.

Do I need to file a Maryland income tax return?
Generally, Maryland residents must file if they are required to file a federal return or if their gross income exceeds the filing threshold. Non-residents must file if they earned income from Maryland sources. See the “Who Must File” section below.

Source: Maryland Comptroller – Tax Information for Individual Income Tax: https://interactive.marylandtaxes.gov/individual/income/tax-info/index.php

Maryland Income Tax Rates and Brackets (2026)

The following state tax rates and brackets apply to income earned in 2025, reported on returns filed in 2026. Note: In addition to state tax, all Maryland residents owe a local income tax to their county or Baltimore City. Local rates are listed separately below.

Rate Snapshot
Tax Attribute Amount / Status
Lowest State Tax Rate 2%
Highest State Tax Rate 6.50%
Tax Structure Progressive
Number of State Brackets 10
State Income Tax Yes
Local Income Tax Yes – all 23 counties and Baltimore City
Standard Deduction (Single / MFS / Dependent) $3,350
Standard Deduction (MFJ / HOH / QSS) $6,700
Personal Exemption $3,200 per exemption (taxpayer, spouse, dependents)
Additional Exemption (age 65+ / blind) $1,000 per qualifying individual
Nonresident Special Tax Rate 2.25% (in addition to state rate)

Source: Maryland Tax Computation Worksheet Schedules I and II (Tax Year 2025): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/worksheets/Tax_Computation_Worksheet_Schedules_I_and_II.pdf
Source: Maryland 2025 State & Local Tax Forms & Instructions: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf

Maryland State Tax Rate 2026
Schedule I — Single, Married Filing Separately, Dependent Taxpayers
Taxable Net Income Maryland Tax
$1 – $1,000 2.00% of taxable net income
$1,001 – $2,000 $20.00 plus 3.00% of excess over $1,000
$2,001 – $3,000 $50.00 plus 4.00% of excess over $2,000
$3,001 – $100,000 $90.00 plus 4.75% of excess over $3,000
$100,001 – $125,000 $4,697.50 plus 5.00% of excess over $100,000
$125,001 – $150,000 $5,947.50 plus 5.25% of excess over $125,000
$150,001 – $250,000 $7,260.00 plus 5.50% of excess over $150,000
$250,001 – $500,000 $12,760.00 plus 5.75% of excess over $250,000
$500,001 – $1,000,000 $27,135.00 plus 6.25% of excess over $500,000
$1,000,001 and over $58,385.00 plus 6.50% of excess over $1,000,000
Maryland State Tax Rate 2026
Schedule II — Married Filing Jointly, Head of Household, Qualifying Surviving Spouse
Taxable Net Income Maryland Tax
$1 – $1,000 2.00% of taxable net income
$1,001 – $2,000 $20.00 plus 3.00% of excess over $1,000
$2,001 – $3,000 $50.00 plus 4.00% of excess over $2,000
$3,001 – $150,000 $90.00 plus 4.75% of excess over $3,000
$150,001 – $175,000 $7,072.50 plus 5.00% of excess over $150,000
$175,001 – $225,000 $8,322.50 plus 5.25% of excess over $175,000
$225,001 – $300,000 $10,947.50 plus 5.50% of excess over $225,000
$300,001 – $600,000 $15,072.50 plus 5.75% of excess over $300,000
$600,001 – $1,200,000 $32,322.50 plus 6.25% of excess over $600,000
$1,200,001 and over $69,822.50 plus 6.50% of excess over $1,200,000

Source: Tax Computation Worksheet Schedules I and II: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/worksheets/Tax_Computation_Worksheet_Schedules_I_and_II.pdf

Note on 2025 Rate Changes: The Budget Reconciliation and Financing Act of 2025 (Chapter 604) added two new high-income brackets effective for tax years beginning after December 31, 2024: a 6.25% bracket and a 6.50% bracket. The Comptroller waived interest and penalties on underpaid 2025 estimated income taxes resulting solely from these rate increases. Source: Maryland Tax Alert (Revised December 22, 2025): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/alerts/tax-alert-changes-to-standard-and-itemized-deductions-and-to-state-and-local-income-tax-rates-from-the-2025-legislative-session.pdf

Local Income Tax Rates (Tax Year 2025)

Maryland’s 23 counties and Baltimore City each levy a local income tax collected on the state return. Local tax is based on the county or city where the taxpayer lives, not where they work.

Most Counties (Flat Rate) — Maryland Local Income Tax (TY 2025)
Jurisdiction TY 2025 Rate
Baltimore City3.20%
Allegany County3.20%
Baltimore County3.20%
Calvert County3.20%
Caroline County3.20%
Carroll County3.03%
Cecil County2.74%
Charles County3.03%
Dorchester County 3.30% (increased retroactively for TY 2025)
Frederick CountyProgressive (see below)
Garrett County2.65%
Harford County3.06%
Howard County3.20%
Kent County3.20%
Montgomery County3.20%
Prince George's County3.20%
Queen Anne's County3.20%
Somerset County3.20%
St. Mary's County3.20%
Talbot County2.40%
Washington County3.00%
Wicomico County3.20%
Worcester County2.25%
Anne Arundel County — Progressive Brackets (TY 2025)
Single, Married Filing Separately, Dependent
Taxable Net Income Rate
$1 – $50,000 2.70%
$50,001 – $400,000 2.94%
$400,001 and over 3.20%
Anne Arundel County — Progressive Brackets (TY 2025)
Married Filing Jointly, Head of Household, Qualifying Surviving Spouse
Taxable Net Income Rate
$1 – $75,000 2.70%
$75,001 – $480,000 2.94%
$480,001 and over 3.20%
Frederick County — Progressive Brackets (TY 2025)
Single, Married Filing Separately, Dependent
Taxable Net Income Rate
$1 – $50,000 2.70%
$50,001 – $400,000 2.94%
$400,001 and over 3.20%
Frederick County — Progressive Brackets (TY 2025)
Married Filing Jointly, Head of Household, Qualifying Surviving Spouse
Taxable Net Income Rate
$1 – $75,000 2.70%
$75,001 – $480,000 2.94%
$480,001 and over 3.20%

Non-residents: Non-residents pay a special nonresident tax rate of 2.25% of Maryland taxable income (in lieu of local tax), unless they are subject to county income tax under Form 515.

Source: Maryland 2025 Resident Booklet (pages ii–iii): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf
Source: Tax Alert – Local Rate Changes: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/alerts/tax-alert-changes-to-standard-and-itemized-deductions-and-to-state-and-local-income-tax-rates-from-the-2025-legislative-session.pdf
Source: 2025 Estimated Tax Worksheet (complete local rate list): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/worksheets/2025-PV-Worksheet.pdf

Capital Gains Surtax (New for Tax Year 2025)

An additional 2% tax applies to net capital gain income for taxpayers whose federal adjusted gross income exceeds $350,000 (regardless of filing status), effective for tax years beginning after December 31, 2024.

Exceptions include: qualifying sales of personal residences sold for under $1.5 million, and gain from certain retirement and business assets.

Form required: Form 502CG (new for Tax Year 2025)
Report on: Form 502, Line 21b (multiply net capital gain subject to surtax by 0.02)

Source: Budget Reconciliation and Financing Act of 2025 (HB 352); Maryland 2025 Resident Booklet: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf

Statutory Authority

State income tax in Maryland is authorized under the following legal framework:

Constitutional Authority:
Maryland Constitution, Article III, Section 14 — grants the General Assembly authority to impose taxes.

Statutory Authority:

Administrative Regulations:

Legislative History:

  • Maryland income tax originally enacted in 1947
  • 2025 amendments (BRFA, HB 352): Added 6.25% and 6.50% brackets, increased standard deduction, imposed capital gains surtax — effective tax year 2025

This page compiles information directly from these statutory and regulatory authorities as implemented by the Maryland Comptroller of Maryland.

Source: Maryland General Assembly Official Website: https://mgaleg.maryland.gov
Source: Comptroller of Maryland — Legal Publications: https://www.marylandcomptroller.gov/individuals/tax-services.html

Who Must File Maryland Income Tax

Residents

Maryland law (Tax-General Article §10-801) requires residents to file a state income tax return (Form 502) if:

  • They are required to file a federal income tax return, OR
  • Their gross income exceeds the filing threshold for their filing status and age (see federal filing thresholds, as Maryland generally follows federal filing requirements)

All five filing statuses apply: Single, Married Filing Jointly, Married Filing Separately, Head of Household, Qualifying Surviving Spouse.

Part-Year Residents

Part-year residents must file Form 502 and complete the part-year resident instructions (Instruction 26 of the 2025 resident booklet) if they:

  • Moved into Maryland during 2025, OR
  • Moved out of Maryland during 2025

Report only income earned during the period of Maryland residency.

Non-Residents

Non-residents must file Form 505 (Non-Resident Income Tax Return) if they had income from Maryland sources, including:

  • Wages earned while physically working in Maryland
  • Business income from Maryland operations
  • Rental income from Maryland property
  • Capital gains from sale of Maryland real property
  • Income from Maryland partnerships, S corporations, or trusts

Exception — Reciprocal states: Residents of Pennsylvania, Virginia, West Virginia, and Washington D.C. who earn only wages, salaries, tips, and commissions in Maryland are generally exempt from Maryland income tax on those wages due to reciprocal agreements. They file in their state of residence instead.

Special — Nonresident county income tax (Form 515): Non-residents employed in Maryland who reside in a local jurisdiction that imposes a local income or earnings tax on Maryland residents must also file Form 515 and pay a local income tax to the Maryland county where they work.

Source: Maryland 2025 State & Local Tax Forms & Instructions, Instruction 1 (Who Must File): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf
Source: Nonresident Tax Return Instructions (Form 505): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/2025/505nr.pdf

What Income Is Taxable in Maryland

Fully Taxable Income

Maryland taxes the same broad categories of income as the federal government. Starting with federal adjusted gross income (FAGI), Maryland makes certain additions and subtractions to arrive at Maryland adjusted gross income.

Income fully taxable in Maryland includes:

  • Wages, salaries, tips, bonuses, commissions
  • Self-employment and business income
  • Investment income (interest, dividends, capital gains)
  • Retirement account distributions (401(k), Traditional IRA, 403(b), etc.)
  • Rental income from real property
  • Gambling winnings (Maryland withholding: 9.5% for residents, 8.75% for non-residents)
  • Alimony received (for agreements entered before December 31, 2018)

Social Security Benefits

Maryland does not tax Social Security benefits. Social Security income is subtracted from federal AGI when computing Maryland adjusted gross income.

Source: Maryland 2025 Resident Booklet, Instruction 13 (Subtractions from income): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf

Military Pay and Retirement Pay

Active duty military pay:
Up to $15,000 of military pay may be subtracted if the pay was earned while serving outside the United States. This subtraction is not available if the servicemember earned more than $30,000 in total military pay.

Military retirement income:
Maryland allows a subtraction of up to $5,000 of military retirement income (for taxpayers who qualify). Additionally, taxpayers at least age 55 on the last day of the taxable year may subtract up to $20,000 of military retirement income. Military retirees who are also age 65 or older may be eligible for the general pension exclusion of up to $41,200 (see Pension Income section below).

Source: Administrative Release No. 23 – Military Retirement Income: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/administrative-releases/income-and-estate-tax/ar_it23.pdf
Source: Maryland veterans’ benefits information: https://veterans.maryland.gov/military-retirement-pay-and-pension-tax-deductions-exclusions/

Pension Income

Age 65 or older / totally disabled:
Taxpayers who are age 65 or older, or totally disabled (or whose spouse is totally disabled), may qualify for a pension exclusion of up to $41,200 for Tax Year 2025. This exclusion is reduced dollar-for-dollar by Social Security and Railroad Retirement benefits received.

Calculation: Use Pension Exclusion Computation Worksheet 13A: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/worksheets/Pension-Exclusion-Worksheet.pdf

Private pensions, 401(k), Traditional IRA distributions: Generally taxable unless the pension exclusion applies.
Roth IRA distributions: Qualified distributions that were excluded from federal income are also excluded from Maryland income.
Federal government pensions: Subject to same rules as other pensions; pension exclusion may apply.
Maryland state/local government pensions: Subject to same rules; pension exclusion may apply.
Public safety employee retirement income: A separate subtraction applies for retired law enforcement officers, firefighters, and rescue workers.

Source: Maryland Pension Exclusion guidance: https://www.marylandtaxes.gov/individual/income/filing/pension-exclusion.php
Source: Pension Exclusion Worksheet 13A: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/worksheets/Pension-Exclusion-Worksheet.pdf

Capital Gains

Capital gains are generally taxed at the same rate as ordinary income under Maryland law. For Tax Year 2025, an additional 2% surtax applies to net capital gain income for taxpayers with federal AGI exceeding $350,000. Certain exceptions apply (e.g., qualified personal residence sales under $1.5 million).

Source: Budget Reconciliation and Financing Act of 2025; Form 502CG Instructions: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf

Standard Deduction and Exemptions

Standard Deduction (Tax Year 2025)

The Budget Reconciliation and Financing Act of 2025 increased the standard deduction and eliminated the prior income-based phase-in, effective for tax years beginning after December 31, 2024.

Maryland Standard Deduction — TY 2026
Filing Status Standard Deduction
Single $3,350
Married Filing Separately $3,350
Dependent Taxpayer $3,350
Married Filing Jointly $6,700
Head of Household $6,700
Qualifying Surviving Spouse $6,700

Future increases to the standard deduction will be indexed to cost-of-living adjustments.

Source: Maryland Tax Alert – Changes to Standard and Itemized Deductions (Revised December 22, 2025): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/alerts/tax-alert-changes-to-standard-and-itemized-deductions-and-to-state-and-local-income-tax-rates-from-the-2025-legislative-session.pdf

Itemized Deductions

Taxpayers may choose to itemize deductions instead of taking the standard deduction. For Tax Year 2025, itemized deductions are subject to a new phase-out for higher-income taxpayers:

  • Taxpayers with federal AGI above $200,000 (or $100,000 for married filing separately) must reduce their otherwise allowable Maryland itemized deductions by 7.5% of federal AGI in excess of $200,000 ($100,000 for MFS).

Example: A single taxpayer with $250,000 FAGI must reduce itemized deductions by 7.5% × ($250,000 – $200,000) = $3,750.

Source: Maryland Tax Alert (above) — Section IV.B

Personal Exemptions — Maryland (TY 2026)
Maryland provides personal exemptions deducted from Maryland net income before calculating tax.
Exemption Type Amount
Personal exemption (taxpayer) $3,200
Spouse exemption (if applicable) $3,200
Each dependent $3,200
Additional exemption (age 65+) $1,000 per qualifying person
Additional exemption (blind) $1,000 per qualifying person

Source: Maryland 2025 Resident Booklet, Instruction 10 (Exemptions): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf

Maryland Income Tax Credits

Maryland offers the following major individual income tax credits:

1. Maryland Earned Income Tax Credit (EITC)

Maryland’s EITC is available to taxpayers who qualify for the federal EITC. The Maryland state EITC reduces the amount of state tax owed; the local EITC reduces county tax owed.

  • State EITC: Up to 50% of the federal EITC (for Tax Year 2025, per the RELIEF Act)
  • Local EITC: Percentage of the state EITC
  • A refundable Maryland EITC may be available to qualifying taxpayers

Eligibility: Must qualify for the federal EITC and meet Maryland residency requirements. As of 2017, non-residents are no longer eligible for the Maryland EITC. Part-year residents may be entitled to a prorated credit.

Source: Maryland EITC information: https://www.marylandcomptroller.gov/individuals/eitc.html

2. Maryland Child Tax Credit

Maryland offers a child tax credit for qualifying children. For Tax Year 2025, an income-based phase-out formula was established by the Budget Reconciliation and Financing Act of 2025 (HB 352).

Eligibility: Taxpayers with qualifying children; income phase-out applies.

Source: Maryland 2025 Resident Booklet, Instruction 18: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf

3. Child and Dependent Care Tax Credit

Maryland provides a credit for qualifying child and dependent care expenses paid to enable the taxpayer (and spouse, if married) to work or look for work.

Eligibility: Taxpayers who incur qualifying care expenses for a child under age 13 or a qualifying dependent.

Source: Form 502CR Instructions: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/2025/502CR.pdf (when available for 2025)

4. Credit for Taxes Paid to Other States

Maryland residents who earn income in another state and pay income tax to that state may claim a credit against their Maryland tax liability. This prevents double taxation on the same income.

Applies to: Income earned in states with which Maryland does not have a reciprocal agreement (e.g., New York, California, Delaware).
Form: Form 502CR, Part A

Source: Form 502CR: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/2025/502CR.pdf

5. Poverty Level Credit

A poverty level credit is available for low-income taxpayers whose Maryland adjusted gross income falls at or below specified thresholds.

Source: Maryland 2025 Resident Booklet, Instruction 18: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf

6. Preceptors in Areas with Health Care Workforce Shortages Tax Credit

A nonrefundable credit for healthcare professionals who serve as preceptors in areas with health care workforce shortages. The termination date was extended to June 30, 2030 by the Building Opportunities for Nurses Act of 2025 (HB 19).

Source: Maryland 2025 Resident Booklet, Instruction 18: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf

Complete list of Maryland income tax credits: Form 502CR (Income Tax Credits for Individuals): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/2025/502CR.pdf

Filing Deadlines

Regular Deadline

April 15, 2026 for Tax Year 2025 returns (calendar year taxpayers)

Extension Deadline

October 15, 2026 — Maryland automatically grants a six-month extension to file (not to pay) if you file or e-file an extension request by April 15, 2026.

Important: An extension to file is not an extension to pay. Any tax owed must still be paid by April 15, 2026 to avoid penalties and interest. An extension request with payment may be filed using Form PV.

Special rule: Taxpayers who both e-file and make payment electronically may extend their payment date to April 30, 2026.

Extension form: File online or by phone; Form PV with payment if applicable: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/worksheets/2025-PV-Worksheet.pdf

Estimated Tax Payments — Maryland (TY 2026)
If you have income not subject to withholding (self-employment, investment income, etc.), quarterly estimated tax payments are due as follows:
Quarter Due Date
Q1 April 15, 2026
Q2 June 15, 2026
Q3 September 15, 2026
Q4 January 15, 2027

Safe harbor: To avoid estimated tax penalties, pay at least 90% of your 2025 tax liability, OR 110% of your prior year (2024) tax liability through withholding and/or estimated payments.

Note: Interest for underpayment of 2025 estimated tax is waived if the underpayment resulted solely from the new 2025 tax rate increases (6.25% and 6.50% brackets).

Source: 2025 Estimated Tax Worksheet / PV: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/worksheets/2025-PV-Worksheet.pdf
Source: Maryland 2025 Resident Booklet, Instruction 24: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf

Filing Options for Maryland Income Tax

Online Filing (E-File)

iFile — Free Maryland Online Filing:
Maryland’s free online filing system with no income limitation.
URL: https://interactive.marylandtaxes.gov/Individuals/iFile_ChooseForm/default.asp

Maryland Tax Connect:
The Comptroller’s online payment and account management portal.
URL: https://www.mdtaxconnect.gov/

IRS-Approved Tax Software: Major tax software products that support Maryland returns (e.g., TaxAct, H&R Block). Check approved provider list at marylandcomptroller.gov.

IRS Free File: May offer free federal and state filing for qualifying income levels. Visit https://www.irs.gov for eligibility.

Paper Filing

Paper forms available at marylandcomptroller.gov or by calling 410-260-7951.

Primary Forms:

Mailing Addresses (Tax Year 2025):

Returns with payment:
Revenue Administration Division
P.O. Box 8888
Annapolis, MD 21401-8888

Returns without payment (or overpayment):
Revenue Administration Division
P.O. Box 549
Annapolis, MD 21411-0001

Tax Preparer Options

Licensed tax professionals familiar with Maryland tax law include:

  • CPA (Certified Public Accountant)
  • Enrolled Agent (EA)
  • Tax Attorney

For a list of approved Maryland e-file software providers, visit: https://www.marylandcomptroller.gov

Source: Maryland 2025 Resident Booklet, Instructions 23–24: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf
Source: 2025 Individual Income Tax Forms: https://www.marylandtaxes.gov/individual/income/forms/2025-Income-Tax-Forms.php

Special Considerations for Maryland Income Tax

Local Income Taxes — Important Maryland Characteristic

Maryland is one of the few states where every resident pays a local income tax in addition to state income tax. This is a defining feature of Maryland’s tax system:

  • All 23 counties and Baltimore City levy a local income tax
  • Rates range from 2.25% (Worcester County) to 3.30% (Dorchester County for TY 2025)
  • Local tax is reported on the state return (Form 502) for administrative convenience — it is collected by the Comptroller and forwarded to local governments
  • Local tax is based on where you live (your Maryland county or city of residence as of December 31, 2025), not where you work

Non-residents working in Maryland pay a special nonresident tax of 2.25% in lieu of local tax, unless they reside in a local jurisdiction that imposes income tax on Maryland residents (in which case Form 515 applies).

Source: Maryland 2025 Resident Booklet, Instruction 19: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf

Remote Workers and Multi-State Taxation

Living in Maryland, Working for an Out-of-State Employer

As a Maryland resident, you owe Maryland state income tax and local income tax on all income, regardless of where your employer is located.

What this means:

  • Employer location does NOT determine tax obligation
  • Income from employers in other states is fully taxable in Maryland
  • Your Maryland employer (or you, through estimated payments) must ensure Maryland tax withholding applies

Example: A Maryland resident working remotely full-time for a New York company owes Maryland state and local income tax on that income. The employer should be withholding Maryland tax (not New York tax) if the employee works exclusively from home in Maryland.

Exception — Physical presence in another state: If you travel to another state and physically perform work there, that state may also claim the right to tax the income attributable to work performed there. You would then file a non-resident return in that state and claim a credit on your Maryland return for taxes paid to that state.

Source: Maryland Comptroller – Personal Tax Tip #56: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/tips/personal/tip56.pdf

Working in Maryland, Living in Another State

Non-residents who physically perform work in Maryland owe Maryland income tax on Maryland-source income.

Physical Presence Rule: Maryland-source income is income from work physically performed within Maryland. Working remotely from another state for a Maryland employer generally does not create Maryland income for the non-resident remote employee.

Exception: If you travel to Maryland and physically work there (even temporarily), the income attributable to those days is Maryland-source income and is taxable in Maryland.

Compensation paid to a Maryland nonresident who is teleworking in Maryland is Maryland-sourced income and subject to Maryland withholding and tax.

Source: Maryland Comptroller – Tax Alert on Employer Withholding for Teleworkers: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/withholding/TaxAlert050420-EmployerWithholdingonTeleworkers.pdf

⚠️ Interstate Tax Risk Indicator

Remote workers involving Maryland commonly encounter dual taxation complications with specific states:

Working with these states requires careful planning:

  • Pennsylvania — Maryland has reciprocity with PA (wages only), but Pennsylvania’s many local earned income tax (EIT) jurisdictions can create additional obligations. Non-residents employed in Maryland who live in certain PA townships may owe both PA local tax and Maryland county tax (Form 515).
  • New York — Applies the “convenience of the employer” rule; NY residents working remotely from another state for NY employers may owe NY tax even on days worked outside NY. Maryland does not apply this rule.
  • Washington D.C. — Reciprocal agreement with Maryland (wages only). DC residents working in Maryland, and Maryland residents working in DC, each file only in their state of residence.
  • Virginia — Reciprocal agreement with Maryland (wages only). VA residents working in Maryland file only in Virginia.
  • Delaware — No reciprocal agreement with Maryland. Non-residents working in Maryland who live in Delaware owe Maryland tax on Maryland-source income, and Delaware tax on Delaware-source income. A credit for taxes paid to another state prevents full double taxation.

Source: Maryland Comptroller – Employer Withholding FAQ (Telework): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/withholding/TaxAlert050420-EmployerWithholdingonTeleworkers.pdf
Source: Personal Tax Tip #56: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/tips/personal/tip56.pdf

“Convenience of the Employer” Rule

Maryland does NOT apply a “convenience of the employer” rule.

Non-residents working remotely from their home state for a Maryland employer are taxed by Maryland only on income from work physically performed in Maryland. Maryland does not tax non-residents solely because their employer is Maryland-based.

Source: Maryland Comptroller – Tax Alert on Employer Withholding for Teleworkers: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/withholding/TaxAlert050420-EmployerWithholdingonTeleworkers.pdf

Reciprocal Agreements

Maryland has reciprocal income tax agreements with the following states and the District of Columbia:

  • Pennsylvania (PA)
  • Virginia (VA)
  • West Virginia (WV)
  • Washington, D.C.

What reciprocity means:
Residents of these jurisdictions who earn wages, salaries, tips, and commissions from work in Maryland pay income tax only to their state of residence — not to Maryland. Maryland state income tax withholding is not required for these employees.

What reciprocity does NOT cover:

  • Business income
  • Farm income
  • Rental income
  • Gain from the sale of tangible property
  • Other non-wage Maryland-source income

For income types not covered by reciprocity, affected taxpayers must file a Maryland non-resident return.

Exemption certificate required:
Employees claiming reciprocity must complete Form MW507 (Maryland Employee’s Withholding Exemption Certificate) and submit it to their Maryland employer. Check Line 4 of Form MW507 for the applicable state, or Line 5 for Pennsylvania.

Form MW507: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/2025/MW507.pdf

Special Pennsylvania rule:
Residents of certain Pennsylvania cities or townships that impose local earned income taxes on Maryland residents who work in those jurisdictions may be subject to Maryland county income tax under Form 515, even when the PA-Maryland reciprocal agreement otherwise applies. See Form MW507, Line 7 for details.

Source: Administrative Release No. 3 – Nonresident Credits and Reciprocal Income Tax Agreements: https://marylandtaxes.gov/forms/Tax_Publications/Administrative_Releases/Income_and_Estate_Tax_Releases/ar_it3.pdf
Source: Personal Tax Tip #56: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/tips/personal/tip56.pdf
Source: Form MW507 (2025): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/2025/MW507.pdf

Multi-State Tax Filing

When earning income in multiple states (excluding reciprocal states for wage income):

  1. File a Maryland resident return (Form 502) reporting all income from all sources
  2. File non-resident returns in other states where income was earned (for work physically performed in those states)
  3. Claim a credit on the Maryland return for income taxes paid to other states — prevents double taxation

Form required for credit:
Form 502CR, Part A — Credit for Income Taxes Paid to Other States or Localities: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/2025/502CR.pdf

Limitation: The credit is limited to the Maryland tax that would have been due on the same income. It cannot exceed Maryland tax.

Source: Form 502CR (Income Tax Credits): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/2025/502CR.pdf

Tax Residency vs. Domicile

Understanding the difference between residency and domicile is critical for determining Maryland tax obligations, especially for individuals who live or work in multiple states.

Domicile Defined

Domicile is your permanent legal home — the place where you intend to remain indefinitely or to which you intend to return after any temporary absence.

Key characteristics:

  • You can have only one domicile at a time
  • Domicile continues until you establish a new domicile elsewhere with intent to remain
  • Temporary absences (work assignments, military orders, schooling) do not change domicile
  • Intent to return is critical

Factors establishing Maryland domicile:

  • Where you maintain your primary residence
  • Where you register to vote
  • Where you obtain your driver’s license
  • Where you file for homestead property tax credit
  • Where your family resides
  • Where you maintain bank accounts and financial affairs
  • Where you belong to civic, religious, or social organizations
  • Where you receive medical care
  • Stated intent in legal documents (wills, trusts)

Source: Maryland Comptroller – Residency determination guidance; Personal Tax Tip #56: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/tips/personal/tip56.pdf

Statutory Residency Defined

Maryland may treat an individual as a statutory resident — and therefore a full Maryland taxpayer — even if that person’s domicile is in another state, if they:

  1. Maintain a place of abode in Maryland, AND
  2. Are physically present in Maryland for more than six months (more than 183 days) during the tax year

A “place of abode” can include a rented apartment, a house, or any dwelling that is maintained for the person’s use — it need not be owned.

Consequence: A statutory resident of Maryland owes Maryland income tax on all income from all sources for the entire year, just as a domiciliary resident would — even if their legal domicile remains in another state.

Source: Annotated Code of Maryland, Tax-General Article §10-101 (definition of “resident”); Personal Tax Tip #56: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/tips/personal/tip56.pdf

Critical Differences — Domicile vs Statutory Residency (Maryland)
Factor Domicile Statutory Residency
Number allowed One at a time Can be resident of multiple states simultaneously
Based on Intent + connections Physical presence (183+ days) + maintaining a place of abode
Changes when Establish new permanent home with intent Stop meeting Maryland's presence or abode threshold
Tax impact Full Maryland resident; taxed on all income Full Maryland resident; taxed on all income

Common Conflict Scenarios

Scenario 1: Snowbirds (Maryland primary, Florida winters)

  • Domicile: Maryland (permanent home, family, voting)
  • Winter: Florida (5 months/year)
  • Tax result: Maryland resident — present in Maryland more than 183 days; owe Maryland tax on all income

Scenario 2: Extended temporary work assignment

  • Domicile: Virginia (permanent home, family)
  • Work assignment: Maryland (8 months, rented apartment, working in Maryland)
  • Tax result: May be Maryland statutory resident (over 183 days + maintaining a place of abode). Would owe Maryland tax on all income for the year, AND may owe Virginia tax as a domiciliary. Would claim credit in Virginia for Maryland taxes paid.

Scenario 3: D.C. resident working in Maryland

  • Domicile and residence: Washington D.C.
  • Works in Maryland office (commutes daily)
  • Does not maintain a place of abode in Maryland
  • Tax result: NOT a Maryland statutory resident (no Maryland abode). Covered by reciprocal agreement for wage income. Files in D.C. only.

Scenario 4: Virginia resident teleworking

  • Domicile: Virginia; works remotely from home in Virginia for Maryland employer
  • Does not travel to Maryland
  • Tax result: NOT subject to Maryland income tax. Maryland does not apply a convenience of employer rule. Files in Virginia only. Employer should withhold Virginia tax.

Source: Personal Tax Tip #56 (When You Live in One State and Work in Another): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/tips/personal/tip56.pdf

Burden of Proof

If Maryland claims you are a resident and you dispute it, the burden typically falls on the taxpayer to prove non-residency.

Common audit triggers:

  • Maintaining a Maryland driver’s license while claiming residency elsewhere
  • Owning a home in Maryland while filing as a non-resident
  • Spouse or children residing in Maryland while taxpayer claims domicile elsewhere
  • Day count near the 183-day statutory threshold
  • High-income individuals claiming non-residency

Source: Maryland Comptroller – Residency determinations and audit guidance.

Multi-State Residency Conflicts

It is possible to be considered a resident of two states simultaneously — for example, if you maintain a domicile in Virginia but spend more than 183 days in Maryland with a maintained place of abode. In such cases:

  • File returns in both states reporting all income
  • Claim a credit in your domicile state for taxes paid to Maryland as the statutory resident state
  • May require professional tax assistance given the complexity

Source: Administrative Release No. 3: https://marylandtaxes.gov/forms/Tax_Publications/Administrative_Releases/Income_and_Estate_Tax_Releases/ar_it3.pdf

Military Personnel

Servicemembers Civil Relief Act (SCRA)

Active duty military members stationed in Maryland due to military orders:

  • Do NOT become Maryland residents solely due to military orders
  • Pay income tax to their state of legal residence (domicile)
  • Are not subject to Maryland income tax on military pay if their domicile is in another state

Military Spouses Residency Relief Act (MSRRA):
Spouses of active duty military may maintain their home state residency and are not taxed by Maryland on income earned in Maryland if:

  • The spouse is in Maryland solely to be with the servicemember
  • The servicemember is in Maryland under military orders
  • The spouse maintains domicile in another state

A qualifying military spouse must complete Form MW507M (Exemption from Maryland Withholding Tax for a Qualified Spouse of a Servicemember) to claim withholding exemption.

Form MW507M: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/2025/MW507M.pdf

Source: Maryland 2025 Resident Booklet, Instruction 29 (Special Instructions for Military Taxpayers): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf

Military Pay Subtraction

Overseas military pay: Up to $15,000 of military pay earned while serving outside the United States may be subtracted from Maryland income. This subtraction is not available if total military pay exceeds $30,000.

Reservists called to active duty: The Tax Relief and State Personnel Equality for Service Members Act (SB 278/HB 691, 2025) clarified that the subtraction for military income includes reservists called to active duty.

Death in service: Income tax is abated for deceased members of the uniformed services (including NOAA and PHS) if death occurs while serving in a public health emergency response area.

Source: Maryland 2025 Resident Booklet, Instruction 13 (Subtractions from income): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf

Military Retirement Pay

Maryland allows a subtraction for military retirement income:

ConditionMaximum Subtraction
All qualifying military retireesUp to $5,000 of military retirement income
Taxpayers age 55 or older on the last day of the tax yearUp to $20,000 of military retirement income

Additionally, military retirees who are age 65 or older (or totally disabled) may also qualify for the general pension exclusion of up to $41,200 — the two benefits may be combined, but the amount subtracted under the military retirement subtraction cannot be counted again in the pension exclusion.

“Military Service” includes:

  • Induction into U.S. Armed Forces (Selective Training and Service Act of 1940 or subsequent acts)
  • Membership in a reserve component of the U.S. Armed Forces
  • Membership in an active component of the U.S. Armed Forces
  • Membership in the Maryland National Guard
  • Active duty with the Commissioned Corps of the Public Health Service, NOAA, or the Coast and Geodetic Survey

Source: Administrative Release No. 23 – Military Retirement Income: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/administrative-releases/income-and-estate-tax/ar_it23.pdf
Source: Maryland veterans’ tax information: https://veterans.maryland.gov/military-retirement-pay-and-pension-tax-deductions-exclusions/

What Military Members DO Owe Tax On

Military members who are Maryland residents (domicile in Maryland) owe Maryland income tax on:

  • Non-military income earned in Maryland
  • Investment income (dividends, interest, capital gains)
  • Rental income from Maryland property
  • Business income
  • Military pay not covered by the overseas subtraction

Source: Administrative Release No. 23: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/administrative-releases/income-and-estate-tax/ar_it23.pdf

Retirees

Social Security Benefits

Maryland does not tax Social Security benefits. All Social Security income is subtracted when computing Maryland adjusted gross income.

Source: Maryland 2025 Resident Booklet, Instruction 13: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf

Pension Income and Exclusion

For Tax Year 2025, Maryland allows a pension exclusion of up to $41,200 per qualifying taxpayer for those who are:

  • Age 65 or older, OR
  • Totally disabled, OR
  • Whose spouse is totally disabled

How the exclusion works:
The maximum exclusion ($41,200) is reduced dollar-for-dollar by any Social Security and/or Railroad Retirement benefits (Tier I and Tier II) received. If Social Security/Railroad Retirement income equals or exceeds $41,200, no pension exclusion is available.

Use Worksheet 13A to compute the allowable exclusion: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/worksheets/Pension-Exclusion-Worksheet.pdf

Example: A retiree aged 70 with $25,000 in Social Security benefits and $30,000 in pension income.

  • Maximum exclusion: $41,200
  • Minus Social Security: –$25,000
  • Tentative exclusion: $16,200
  • Pension exclusion: $16,200 (lesser of $16,200 tentative or $30,000 pension income)
  • Taxable pension: $30,000 – $16,200 = $13,800

Taxpayers 100 years old or older: May be eligible to exclude up to $100,000 of income.

Source: Maryland Comptroller – Pension Exclusion guidance: https://www.marylandtaxes.gov/individual/income/filing/pension-exclusion.php
Source: Pension Exclusion Worksheet 13A: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/worksheets/Pension-Exclusion-Worksheet.pdf

Retirement Account Distributions

401(k) and Traditional IRA: Distributions are included in Maryland taxable income. The pension exclusion may apply if the taxpayer meets age/disability requirements.

Roth IRA: Qualified distributions that were excluded from federal income are also excluded from Maryland income.

Maryland State Employee Retirement Systems: Subject to same rules as other pensions; pension exclusion may apply.

Public safety employee retirement income: A separate subtraction modification is available for retired law enforcement officers, firefighters, rescue workers, and other qualifying public safety employees. Use the separate Form 502SU.

Source: Maryland 2025 Resident Booklet, Instruction 13; Form 502R (Retirement Income): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/2025/502r.pdf
Source: Seniors and Retirees FAQ: https://www.marylandtaxes.gov/faq/seniors-retirees.php

Students

College students attending school in Maryland do not automatically become Maryland residents for tax purposes.

You remain a non-resident if:

  • You maintain legal residence (domicile) in another state
  • Your presence in Maryland is temporary for educational purposes
  • You intend to return to your home state after graduation

You owe Maryland tax only on Maryland-source income:

  • Wages earned from jobs in Maryland
  • Scholarships/fellowships used for non-qualified expenses (to the extent taxable federally)

Establishing Maryland residency as a student:
Students can become Maryland residents if they take affirmative steps to establish domicile:

  • Register to vote in Maryland
  • Obtain a Maryland driver’s license
  • Purchase property in Maryland
  • Demonstrate intent to remain in Maryland after graduation

Note: Merely attending school in Maryland for four years does not establish domicile if the student’s intent is to return to their home state.

Source: Maryland 2025 Resident Booklet, Instruction 1; general Maryland residency rules.

Part-Year Residents

If you moved TO or FROM Maryland during 2025, you must file as a part-year resident using Form 502 and follow the special instructions in Instruction 26 of the 2025 resident booklet.

Income allocation:

  • Report income earned while a Maryland resident (from your start/end date of Maryland residency)
  • Exclude income earned while a resident of another state
  • Prorate standard deduction and exemptions based on the period of Maryland residency

Moving TO Maryland:

  • Maryland residency begins on the date you establish domicile in Maryland (typically the day you move in)
  • Report all income from that date forward on your Maryland return
  • File a non-resident or part-year resident return in your former state for income earned before moving

Moving FROM Maryland:

  • Maryland residency ends on the date you establish domicile in your new state
  • Report all income through that date on your Maryland return
  • File a non-resident or part-year resident return in your new state for income earned after moving

Form: Form 502 with Part-Year Resident notation (mark “P” in the box on Form 502 if you began or ended legal residence in Maryland in 2025)

Source: Maryland 2025 Resident Booklet, Instruction 9 (Part-Year Residents) and Instruction 26 (Special Instructions for Part-Year Residents): https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf

Penalties and Interest

Late Filing Penalty

Maryland imposes a penalty of 10% of the unpaid tax for filing your return after the deadline without an extension.

Source: Annotated Code of Maryland, Tax-General Article §13-701

Late Payment Penalty

Maryland imposes a penalty of 10% of the unpaid tax for failing to pay tax owed by the deadline (April 15, 2026 for Tax Year 2025).

Source: Annotated Code of Maryland, Tax-General Article §13-702

Interest on Unpaid Tax

Interest accrues on unpaid tax at the statutory rate from the original due date until paid. The current rate is published by the Comptroller.

Source: Maryland Comptroller — Interest Rates and Penalty information: https://www.marylandcomptroller.gov

Underpayment of Estimated Tax

A penalty may apply if you did not pay enough tax through withholding and/or estimated payments. No penalty applies if:

  • You paid at least 90% of the current year’s tax liability, OR
  • You paid at least 110% of the prior year’s (2024) tax liability

Special waiver for Tax Year 2025: Interest for underpayment of 2025 estimated tax is waived if the underpayment resulted solely from the new 2025 rate increases (6.25% and 6.50% brackets).

Source: Maryland 2025 Estimated Tax Worksheet: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/worksheets/2025-PV-Worksheet.pdf

Documentation Commonly Requested in Residency Audits

Maryland tax authorities may audit residency determinations. The following documentation types are commonly requested:

Primary Residency Evidence — Maryland
Document Type What It Shows
Driver's License State of legal residence
Voter Registration Where you exercise voting rights
Vehicle Registration Where vehicles are domiciled
Professional Licenses State of professional domicile
Physical Presence Documentation — Maryland
Document Type What It Shows
Day-Count Logs Physical location by day (critical for 183-day rule)
Travel Records Interstate travel patterns
Credit Card Statements Geographic spending patterns
Cell Phone Records Location data from carrier
E-ZPass / Toll Records State line crossings
Property and Financial Ties — Maryland
Document Type What It Shows
Property Ownership Records Real estate holdings
Homestead Tax Credit Application Primary residence claim
Utility Bills Physical occupancy patterns
Home Purchase or Rental Lease Residence location
Bank Statements Financial institution location
Social and Family Connections — Maryland
Document Type What It Shows
Family Location Where spouse/children reside
Medical Records Where you receive regular care
Religious Affiliation Place of worship attendance
Club / Organization Memberships Social/recreational ties
Employment Documentation — Maryland
Document Type What It Shows
W-2 Forms Employer location, wages
Remote Work Agreement Authorization to work remotely
Employment Contract Work location requirements

State-Specific Audit Triggers:

Common patterns that trigger Maryland residency audits:

  • Claiming non-residency while maintaining a Maryland driver’s license
  • Owning Maryland property while filing as a non-resident
  • Spouse or children residing in Maryland while taxpayer claims another domicile
  • Day count near 183 days (statutory residency threshold)
  • High-income individuals claiming non-residency

Burden of Proof: In residency disputes, the burden typically falls on the taxpayer to prove non-residency or domicile elsewhere.

Note: This section provides factual information about documentation types commonly requested. It does not constitute legal or tax advice.

Forms & Publications

Primary Tax Return Forms

Resident and Part-Year Resident Return:

Non-Resident Return:

Common Schedules and Worksheets

Withholding Forms

Key Legal Publications

All Forms Library

Complete 2025 Individual Income Tax Forms: https://www.marylandtaxes.gov/individual/income/forms/2025-Income-Tax-Forms.php

Where to Submit Paper Returns

Returns with payment:
Revenue Administration Division
P.O. Box 8888
Annapolis, MD 21401-8888
(Attach Form PV and check/money order payable to Comptroller of Maryland)

Returns without payment (refund or zero balance):
Revenue Administration Division
P.O. Box 549
Annapolis, MD 21411-0001

Information Verification Log

Information Verification Log — Maryland (Last Verified February 18, 2026)
Information Type Source Last Verified
State tax rates and brackets (Schedules I & II) Tax Computation Worksheet Schedules I and II:
Maryland Comptroller – Tax Computation Worksheet (PDF) 		February 18, 2026
2025 rate changes (new brackets) Tax Alert – 2025 Legislative Session:
Maryland Comptroller – 2025 Legislative Tax Alert (PDF) 		February 18, 2026
Standard deduction amounts Refer to:
2025 Legislative Session Tax Alert 		February 18, 2026
Local income tax rates (all counties) 2025 Estimated Tax Worksheet / Resident Booklet:
Maryland 2025 Resident Booklet 		February 18, 2026
Pension exclusion ($41,200) Pension Exclusion Computation Worksheet 13A:
Pension Exclusion Worksheet (PDF) 		February 18, 2026
Capital gains surtax 2025 Resident Booklet / BRFA HB 352:
Maryland 2025 Resident Booklet 		February 18, 2026
Reciprocal agreements Personal Tax Tip #56:
Maryland Reciprocal Agreement Guidance (PDF) 		February 18, 2026
Filing forms 2025 Individual Income Tax Forms:
Maryland 2025 Income Tax Forms 		February 18, 2026
Military retirement subtraction Administrative Release No. 23:
Administrative Release IT-23 (PDF) 		February 18, 2026

Where to Check for Updates

Current Tax Rate Tables:
https://interactive.marylandtaxes.gov/individual/income/tax-info/index.php — Updated annually, typically after the legislative session

Forms Library:
https://www.marylandtaxes.gov/individual/income/forms/2025-Income-Tax-Forms.php — Forms available starting January each year

Legislative Changes:

Administrative Guidance:

Stay Informed (Email Subscription):
https://app.indigov.com/pub/5a7a913e-9493-4fec-b4a4-c17e4df8284d/subscriptions/new

Note: This page will be reviewed and updated in January 2027 for Tax Year 2026. For real-time updates, always consult the official Maryland Comptroller’s website at https://www.marylandcomptroller.gov.

Update History

February 2026 — Initial Publication

  • Published comprehensive Maryland income tax guide (Parts 1–4)
  • Tax Year 2025 (returns filed in 2026)
  • All sections verified from official Maryland Comptroller sources
  • Reflects Budget Reconciliation and Financing Act of 2025 (HB 352) changes:
    • New 6.25% and 6.50% brackets (effective TY 2025)
    • Increased standard deductions ($3,350 / $6,700)
    • Itemized deduction phase-out for FAGI over $200,000
    • New 2% capital gains surtax for FAGI over $350,000
    • Dorchester County local rate increase to 3.30%
    • Anne Arundel County local rate update (middle bracket to 2.94%)

Verification Schedule:

  • Annual Update: January/February (new tax year rates, forms, and instructions)
  • Mid-Year Review: June (legislative changes, administrative releases)
  • Continuous Monitoring: Emergency tax legislation, Comptroller announcements
  • Source Link Check: Quarterly (all .gov URLs verified functional)

Last comprehensive update: February 18, 2026
Next scheduled review: February 2027 (for Tax Year 2026)

Others

California
Virginia
Colorado
Arizona
Indiana
Michigan
Illinois
Ohio
Massachusetts
Georgia
North Carolina
Washington

Legal Disclaimer: Nature of This Compilation This document is a compilation of publicly available information from official government sources. It is NOT: Legal advice An interpretation of laws or regulations A substitute for consultation with a licensed attorney A comprehensive treatment of all applicable laws Guaranteed to be complete or current