Regular readers of Tax Foundation reports know that we publish estimates of the distributional impact of federal tax changes: that is, we estimate how a tax reform might affect the after-tax incomes of taxpayers at...
The facts on Maryland’s Tax Climate
5.75%individual income taxTop rate
8.25%corporate income taxFlat rate
$1,504property taxcollections per capita
Maryland's Individual Income Tax System
Maryland's individual income tax system consists of eight brackets with a top rate of 5.75%. The top rate ranks 25th highest among states levying an individual income tax. Maryland counties and cities also impose significant local income taxes. Maryland's state and local tax collections per person were $2,061 in 2013, which ranked 3rd highest nationally.
50-State Table of Individual Income Tax Rates
Maryland's Corporate Income Tax System
Maryland's corporate income tax system consists of a flat rate of 8.25%. That rate ranks 12th highest among states levying a corporate income tax. Maryland's state and local corporate income tax collections per person were $160 in 2013 which ranked 17th highest nationally.
50-State Table of Corporate Income Tax Rates
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 does not levy additional local sales taxes. Maryland's state and local governments collect $693 per person in general sales taxes and $676 per person in excise taxes, for a combined figure of $,1369, which ranks 32nd highest nationally. Maryland's gasoline tax stands at 32.6 cents per gallon, 13th highest nationally, while its cigarette tax stands at $2.00, 11th highest nationally.
50-State Table of State and Local Sales Tax Rates
Maryland Property Tax Collections Average
Maryland's state and local governments collected approximately $1,504 per person in property taxes in 2013, which ranks 17th nationally.
Tax Freedom Day Arrives on April 28th in Maryland
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Maryland taxpayers have to work until April 28th (42nd earliest nationally) to pay their total tax bill.
Maryland's State and Local Tax Burden Ranks 7th
Maryland's 2016 Business Tax Climate Index Ranks 41st
Maryland ranks 41st on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (19th), individual income taxes (45th), sales taxes (8th), unemployment insurance taxes (28th), and taxes on property (42nd), including residential and commercial property.
State Business Tax Climate Index (full study)
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