Last week, the Tax Policy Center held an event called “Measuring the Distribution of Federal Spending and Taxes.” At this event, Gerald Prante presented his findings from the Tax Foundation study called “A Distributional...
The facts on Maryland’s Tax Climate
5.75%individual income taxTop rate
8.25%corporate income taxFlat rate
$1467property 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 income tax collections per person were $1737 in 2010 which ranked 3rd 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 14th highest among states levying an corporate income tax. Maryland's corporate tax collections per person were $155 in 2010 which ranked 8th 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 the same as the national median of 6%. Maryland's state and local governments collect $652 per person in general sales taxes and $536 per person in excise taxes, for a combined figure of $1187, which ranks 12th lowest nationally. Maryland's gasoline tax stands at 23.5¢ (22nd lowest nationally), while its cigarette tax stands at $2 (10th 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 $1467 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 21st 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 2013, Maryland taxpayers worked until April 21st (8th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Delaware, April 14th (ranked 22nd latest nationally); Pennsylvania, April 17th (ranked 15th latest nationally); West Virginia, April 19th (ranked 13th latest nationally); and Virginia, April 20th (ranked 10th latest nationally).
Maryland's State and Local Tax Burden In Line with National Average
Maryland's 2010 tax burden of 10.2% ranks 12th highest out of 50 states, and is above the national average of 9.9%. Maryland's taxpayers pay $5234 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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