Maryland Income Tax Proposal Raises Rates Above $100,000 May 14, 2012 TF Staff TF Staff Maryland’s tax 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. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Center for State Tax Policy Maryland Individual Income and Payroll Taxes
