How does Maryland’s tax code compare? Maryland has a graduated state individual income tax, with rates ranging from 2.00 percent to 5.75 percent. There are also jurisdictions that collect local income taxes. Maryland has an 8.25 percent corporate income tax rate. Maryland also has a 6.00 percent state sales tax rate and does not have local sales taxes. Maryland has a 0.95 percent effective property tax rate on owner-occupied housing value.
Maryland has both an estate tax and an inheritance tax. Maryland has a 47.2 cents per gallon gas tax rate and a $3.75 cigarette excise tax rate. Maryland collects $7,248 in state and local tax collections per capita. Maryland has $10,269 in state and local debt per capita and has an 81 percent funded ratio of public pension plans. Maryland’s tax system ranks 46th overall on the 2025 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Maryland is no exception. The first step towards understanding Maryland’s tax code is knowing the basics. How does Maryland collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2024: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
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Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
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Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections).
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