Today, the Tax Foundation is honoring six individuals with the second annual award for Outstanding Achievement in State Tax Reform. As the award’s name suggests, the honorees were selected due to their extraordinary...
The facts on Maryland’s Tax Climate
5.75%individual income taxTop rate
8.25%corporate income taxFlat rate
$1449property taxcollections per capita
Maryland's Individual Income Tax System
Maryland's personal income tax system consists of eight brackets and a top rate of 5.75%. That rate ranks 24th lowest among states levying an individual income tax. Maryland's state and local income tax collections per person were $1823 in 2011 which ranked 2nd highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Maryland's Corporate Income Tax System
Maryland's corporate income tax system consists of a flat rate of 8.25%. That rate ranks 15th highest among states levying a corporate income tax. Maryland's state and local corporate income tax collections per person were $133 in 2011 which ranked 21st highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Maryland Sales and Excise Taxes
Maryland levies a 6% general sales or use tax on consumers, which is above the national median of 5.95%. Maryland's state and local governments collect $670 per person in general sales taxes and $596 per person in excise taxes, for a combined figure of $1266, which ranks 14th lowest nationally. Maryland's gasoline tax stands at 27¢ (25th highest nationally), while its cigarette tax stands at $2 (11th highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Maryland Property Tax Collections Average
Maryland's state and local governments collected approximately $1449 per person in property taxes, which ranks 17th highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 28th in Maryland
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, Maryland taxpayers worked until April 28th (7th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Delaware, April 18th (ranked 19th latest nationally); Pennsylvania, April 21st (ranked 15th latest nationally); West Virginia, April 10th (ranked 9th earliest nationally); and Virginia, April 24th (ranked 11th latest nationally).
Maryland's State and Local Tax Burden Above National Average
Maryland's 2011 tax burden of 10.6% ranks 7th highest out of 50 states, and is above the national average of 9.8%. Maryland's taxpayers pay $5598 per capita in state and local taxes.
Maryland's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Maryland's 2014 Business Tax Climate Index Ranks 41
Maryland ranks 41st in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Delaware, 13th, Pennsylvania, 24th, West Virginia, 23rd, and Virginia, 26th.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)
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