Maryland’s taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. special session began today; expect more analysis on it from us tomorrow. However, we just received detail on S.B. 1302, the “State and Local Revenue and Financing Act of 2012.” The bill would raise income tax rates for high-income earners, defined as those making at least $100,000. The proposal also more aggressively phases out exemptions for those filers.
The rate changes:
| Singles | ||
| Bracket | Current Rate | Proposed Rate |
| >$0 | 2% | 2% |
| >$1,000 | 3% | 3% |
| >$2,000 | 4% | 4% |
| >$3,000 | 4.75% | 4.75% |
| >$100,000 | 4.75% | 5% |
| >$125,000 | 4.75% | 5.25% |
| >$150,000 | 5% | 5.5% |
| >$250,000 | 5% | 5.75% |
| >$300,000 | 5.25% | 5.75% |
| >$500,000 | 5.5% | 5.75% |
| Married Filing Jointly, Head of Household | ||
| Bracket | Current Rate | Proposed Rate |
| >$0 | 2% | 2% |
| >$1,000 | 3% | 3% |
| >$2,000 | 4% | 4% |
| >$3,000 | 4.75% | 4.75% |
| >$150,000 | 4.75% | 5% |
| >$175,000 | 4.75% | 5.25% |
| >$200,000 | 5% | 5.5% |
| >$225,000 | 5% | 5.75% |
| >$350,000 | 5.25% | 5.75% |
| >$500,000 | 5.5% | 5.75% |
Our back-of-the-envelope state income tax calculation for a dual-earner, two child family with $250,000 in federal adjusted gross income:
|
State |
Currently |
Under Maryland Proposal |
|
Maryland |
$16,786 |
$17,775 |
|
District of Columbia |
$16,612 |
$16,612 |
|
Virginia |
$11,651 |
$11,651 |
More on Maryland here.
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