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Overall Rank
44
Up 1 place since 2026 -
34
Up 3 places since 2026 -
47
No change since 2026 -
36
Up 2 places since 2026 -
36
No change since 2026 -
Unemployment Insurance Tax Rank
22
Down 4 places since 2026
Maryland ranks 44th overall on the 2027 State Tax Competitiveness Index.
Score 4.35 / 10
About Maryland's Tax Code
Maryland’s tax code is complex and includes all the major tax types. The state has historically ranked among the bottom 10 states on the Index. Maryland has a progressive individual income tax system. Legislation enacted in 2025 increased the state’s individual tax progressivity by expanding to 10 tax brackets, creating a new top marginal tax rate of 6.5 percent, and establishing a 2 percentage point capital gains surcharge for individuals with federal AGI exceeding $350,000. High-rate county income taxes, with rates as high as 3.3 percent, yield a substantially above-average income tax burden for Maryland residents.
The state’s corporate income tax rate is 8.25 percent, considerably higher than regional competitors Virginia and West Virginia. Maryland conforms to Section 951A under the One Big Beautiful Bill Act (OBBBA) and therefore includes net CFC tested income (NCTI) in its corporate tax base, increasing Maryland corporate income tax liability for companies with operations abroad. As a result of legislation adopted in 2026, Maryland now limits its partial conformity to the federal bonus depreciation by allowing only a 20 percent deduction for qualified machinery and equipment expenses for manufacturers. Maryland limits Section 179 expensing for pass-through businesses to $25,000 in annual expenses, whereas most states offer $2.56 million. However, Maryland does not impose harmful gross receipts or capital stock taxes and has a sales tax system with a general statewide rate of 6 percent.
In addition to complexities with traditional taxes, Maryland was the first state in the country to adopt a targeted digital advertising tax, which is nonneutral, difficult to comply with, and subject to numerous legal disputes. In 2025, Maryland adopted a 3 percent tax on a range of business digital products. Maryland is also the only state that imposes both estate and inheritance taxes, with maximum rates of 16 and 10 percent, respectively, making the state less attractive for high-net-worth individuals. These factors further exacerbate Maryland’s relatively poor tax competitiveness.
Component Scores
#44 overall · 4.35 / 10Each component is scored from 0 to 10, where 10 is best. Select a component for its detail page.
| Component | Rank | Score | |
|---|---|---|---|
| Corporate Taxes | #34 | 4.87 / 10 | |
| Individual Income Taxes | #47 | 3.64 / 10 | |
| Sales Taxes | #36 | 4.17 / 10 | |
| Property Taxes | #36 | 4.60 / 10 | |
| Unemployment Insurance Taxes | #22 | 5.22 / 10 |
Ranking Changes, 2020–2027
#44 in 2027 · down 4 places from 2020Maryland ranked 40th in 2020 and ranks 44th in 2027, a decline of 4 places. The axis is zoomed to the state's range. Ranks for 2020 through 2026 are backcast under the current methodology.
Show the Table
| Year | Overall | Corporate | Individual Income | Sales | Property | Unemployment Insurance |
|---|---|---|---|---|---|---|
| 2020 | 40 (4.66) | 38 (4.88) | 45 (4.07) | 19 (4.96) | 35 (4.66) | 26 (5.09) |
| 2021 | 39 (4.73) | 36 (4.90) | 44 (4.09) | 15 (5.26) | 35 (4.66) | 24 (5.06) |
| 2022 | 46 (4.45) | 35 (4.89) | 45 (4.13) | 34 (4.37) | 35 (4.58) | 37 (4.51) |
| 2023 | 45 (4.49) | 35 (4.85) | 45 (4.10) | 34 (4.39) | 36 (4.57) | 28 (4.88) |
| 2024 | 42 (4.48) | 34 (4.84) | 45 (4.06) | 35 (4.40) | 36 (4.53) | 24 (5.07) |
| 2025 | 42 (4.48) | 36 (4.82) | 45 (4.05) | 33 (4.36) | 36 (4.51) | 20 (5.26) |
| 2026 | 45 (4.30) | 37 (4.79) | 47 (3.50) | 38 (4.15) | 36 (4.62) | 18 (5.38) |
| 2027 | 44 (4.35) | 34 (4.87) | 47 (3.64) | 36 (4.17) | 36 (4.60) | 22 (5.22) |
Maryland Compared across the States
#44 overallEach row places the states on a 0 to 10 score scale for one measure. Maryland is the large outlined dot, and the dashed line is the 50-state median, so a dot to its right scores better than the typical state. Hover over or tab to any dot for detail, and select it to open that state's profile.
Overall
#44 4.35
Corporate Taxes
#34 4.87
Individual Income Taxes
#47 3.64
Sales Taxes
#36 4.17
Property Taxes
#36 4.60
Unemployment Insurance Taxes
#22 5.22
- Maryland
- Other states, by rank (1st to 50th)
- 50-state median
Maryland and Its Neighbors
#44 overallMaryland borders 4 states and ranks 44th overall; every one of them ranks higher. It also borders the District of Columbia, which is left out of that count.
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Delaware #22 Score 5.30 22 places better -
West Virginia #29 Score 5.09 15 places better -
Pennsylvania #30 Score 5.04 14 places better -
Virginia #31 Score 5.02 13 places better -
Maryland #44 Score 4.35 This state -
District of Columbia #47* Score 4.17
What Each Component Includes
The five components of the Index, what each one covers, and where Maryland lands. Open any component for the full breakdown.
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Corporate Taxes
Rank #34Includes corporate income taxes and gross receipts taxes. Measures the impact of each state’s principal tax on business activities.
Full Breakdown for Maryland → -
Individual Income Taxes
Rank #47Covers the tax individuals pay on income, and with it a significant number of businesses — sole proprietorships, partnerships, and S corporations — that report their income through the individual income tax code.
Full Breakdown for Maryland → -
Sales Taxes
Rank #36Covers the general sales tax levied on the purchase price of goods and services, plus excise taxes on gasoline, diesel, tobacco, vapor products, beer, and spirits, and taxes on digital advertising.
Full Breakdown for Maryland → -
Property Taxes
Rank #36Includes taxes on real and personal property, net worth, and the transfer of assets — among them capital stock, estate, inheritance, and real estate transfer taxes.
Full Breakdown for Maryland → -
Unemployment Insurance Taxes
Rank #22Covers the taxes employers pay into the state unemployment insurance program to finance benefits for workers recently unemployed.
Full Breakdown for Maryland →
Tax Data Explorer
Every policy variable behind Maryland's 2027 scores, grouped by the report's tables, as of July 1, 2026. Its bordering states are shown alongside to start. Search the variables and values, or add up to 4 states to compare side by side.
156 data points · Shaded values differ from Maryland
Corporate Taxes: Corporate Income Tax Rates
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| Bracket 1 | 8.25% > $0 | 8.7% > $0 (differs) | 8.25% > $0 | 7.49% > $0 (differs) | 6.0% > $0 (differs) | 6.5% > $0 (differs) |
| Gross Receipts Tax | No | Yes (differs) | No | No | No | No |
| Gross Receipts Tax Minimum Rate | n.a. | 0.0945% (differs) | n.a. | n.a. | n.a. | n.a. |
| Gross Receipts Tax Maximum Rate | n.a. | 0.7468% (differs) | n.a. | n.a. | n.a. | n.a. |
| Gross Receipts Tax Rate Used in the Index | n.a. | 0.7468% (differs) | n.a. | n.a. | n.a. | n.a. |
Corporate Taxes: Tax Credits and Gross Receipts Deductions
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| Job Credits | Yes | Yes | Yes | Yes | No (differs) | Yes |
| Research and Development Credits | Yes | Yes | No (differs) | Yes | Yes | Yes |
| Investment Credits | No | Yes (differs) | No | Yes (differs) | No | Yes (differs) |
| Compensation Expenses Deductible | n.a. | No (differs) | n.a. | n.a. | n.a. | n.a. |
| Cost of Goods Sold Deductible | n.a. | No (differs) | n.a. | n.a. | n.a. | n.a. |
Corporate Taxes: Net Operating Losses
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| Conforms to Federal NOL Treatment | Yes | Yes | Yes | No (differs) | Yes | Yes |
| Carryback (Years) | Conforms to federal treatment | Conforms to federal treatment | Conforms to federal treatment | 0 (differs) | Conforms to federal treatment | Conforms to federal treatment |
| Carryback Cap | Conforms to federal treatment | Conforms to federal treatment | Conforms to federal treatment | $0 (differs) | Conforms to federal treatment | Conforms to federal treatment |
| Carryforward (Years) | Conforms to federal treatment | Conforms to federal treatment | Conforms to federal treatment | 20 (differs) | Conforms to federal treatment | Conforms to federal treatment |
| Carryforward Cap | Conforms to federal treatment | Conforms to federal treatment | Conforms to federal treatment | 50% of Liability (differs) | Conforms to federal treatment | Conforms to federal treatment |
Corporate Taxes: Treatment of Capital Investment
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| Section 168(k) Expensing | 0% | 20% (differs) | 0% | 0% | 0% | 100% (differs) |
| Conforms to Section 163(j) Limitation | Yes | Yes | Yes | Yes | Yes | Yes |
| GILTI Inclusion | 50% Inclusion | 60% Inclusion (differs) | 50% Inclusion | Decouples (differs) | Decouples (differs) | 50% Inclusion |
| Section 174 Expensing | Yes | Yes | No (differs) | No (differs) | No (differs) | Yes |
| Section 168(n) Expensing | No | No | No | No | No | Yes (differs) |
Corporate Taxes: Other Corporate Base Variables
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| Federal Income Used as State Tax Base | Yes | Yes | Yes | Yes | Yes | Yes |
| Conformity Status | Rolling | Rolling | Rolling | Rolling | Static (current) (differs) | Static (current) (differs) |
| Allows Federal ACRS or MACRS Depreciation | Yes | Yes | Yes | Yes | Yes | Yes |
| Allows Federal Depletion | Partial | Partial | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) |
| Throwback Rule | No | No | Yes (differs) | No | No | No |
| Foreign Tax Deductibility | Yes | No (differs) | Partial (differs) | No (differs) | No (differs) | No (differs) |
| Corporate AMT | No | No | No | No | No | No |
| Brackets Indexed for Inflation | Flat CIT | Flat CIT | Flat CIT | Flat CIT | Flat CIT | Flat CIT |
Individual Income Taxes: Individual Income Tax Rates
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| Bracket 1 | 2.0% > $0 | 2.2% > $2,000 (differs) | 4.0% > $0 (differs) | 3.07% > $0 (differs) | 2.0% > $0 | 2.11% > $0 (differs) |
| Bracket 2 | 3.0% > $1,000 | 3.9% > $5,000 (differs) | 6.0% > $10,000 (differs) | n.a. (differs) | 3.0% > $3,000 (differs) | 2.81% > $10,000 (differs) |
| Bracket 3 | 4.0% > $2,000 | 4.8% > $10,000 (differs) | 6.5% > $40,000 (differs) | n.a. (differs) | 5.0% > $5,000 (differs) | 3.16% > $25,000 (differs) |
| Bracket 4 | 4.75% > $3,000 | 5.2% > $20,000 (differs) | 8.5% > $60,000 (differs) | n.a. (differs) | 5.75% > $17,000 (differs) | 4.22% > $40,000 (differs) |
| Bracket 5 | 5.0% > $100,000 | 5.55% > $25,000 (differs) | 9.25% > $250,000 (differs) | n.a. (differs) | n.a. (differs) | 4.58% > $60,000 (differs) |
| Bracket 6 | 5.25% > $125,000 | 6.6% > $60,000 (differs) | 9.75% > $500,000 (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) |
| Bracket 7 | 5.5% > $150,000 | n.a. (differs) | 10.75% > $1,000,000 (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) |
| Bracket 8 | 5.75% > $250,000 | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) |
| Bracket 9 | 6.25% > $500,000 | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) |
| Bracket 10 | 6.5% > $1,000,000 | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) | n.a. (differs) |
| Standard Deduction (Single Filer) | $3,350 | $3,250 (differs) | $16,100 (differs) | n.a. (differs) | $8,750 (differs) | n.a. (differs) |
| Personal Exemption (Single Filer) | $3,200 | n.a. (differs) | n.a. (differs) | n.a. (differs) | $930 (differs) | $2,000 (differs) |
| Personal Exemption Credit (Single Filer) | n.a. | $110 (differs) | n.a. | n.a. | n.a. | n.a. |
| Personal Exemption per Dependent | $3,200 | n.a. (differs) | n.a. (differs) | n.a. (differs) | $930 (differs) | $2,000 (differs) |
| Personal Exemption Credit per Dependent | n.a. | $110 (differs) | n.a. | n.a. | n.a. | n.a. |
| Average Local Income Tax Rate | 3.20% | 0.63% (differs) | None (differs) | 3.37% (differs) | None (differs) | 0.42% (differs) |
| Surtaxes on Wage Income | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
Individual Income Taxes: Marriage Penalty, Capital Income, Indexation
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| Marriage Penalty | Yes | Yes | Yes | No (differs) | Yes | Yes |
| Married Couples Can File Separately on One Return | No | Yes (differs) | Yes (differs) | No | No | Yes (differs) |
| Convenience Rule | No | Yes (differs) | No | Yes (differs) | No | No |
| Interest Taxed | Yes | Yes | Yes | Yes | Yes | Yes |
| Dividends Taxed | Yes | Yes | Yes | Yes | Yes | Yes |
| Capital Gains Taxed | Yes | Yes | Yes | Yes | Yes | Yes |
| Combined Capital Gains Tax Rate | 11.7% | 6.6% (differs) | 10.75% (differs) | 3.07% (differs) | 5.75% (differs) | 4.58% (differs) |
| Tax Brackets Indexed for Inflation | No | No | No | Yes (differs) | No | No |
| Standard Deduction Indexed for Inflation | Yes | No (differs) | Yes | Yes | No (differs) | Yes |
| Personal Exemption Indexed for Inflation | No | No | Yes (differs) | Yes (differs) | No | No |
| Progressivity Ratio | 1.37 | 1.00 (differs) | 1.26 (differs) | 1.00 (differs) | 1.00 (differs) | 1.00 (differs) |
Individual Income Taxes: Other Individual Base Variables
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| Federal Income Used as State Tax Base | Yes | Yes | Yes | No (differs) | Yes | Yes |
| Conformity Status | Rolling | Rolling | Rolling | Static (not current) (differs) | Static (current) (differs) | Static (current) (differs) |
| Credits for Taxes Paid to Other States | Yes | Yes | Yes | Yes | Yes | Yes |
| AMT Levied | No | No | No | No | No | No |
| Recognition of S Corporation Status | Yes | Yes | No (differs) | Yes | Yes | Yes |
| Section 179 Expensing Limit | $25,000 | $2,560,000 (differs) | $25,000 | $1,250,000 (differs) | $1,250,000 (differs) | $2,560,000 (differs) |
| Tips | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable |
| Overtime | Taxable | Taxable | Taxable | Taxable | Taxable | Taxable |
| Filing and Withholding Threshold Index | 0 | 0 | 10 (differs) | 0 | 0 | 5 (differs) |
Individual Income Taxes: Other Individual Income Variables
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| Income Recapture | No | No | No | No | No | No |
Sales Taxes: Sales and Excise Tax Rates
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| State Sales Tax Rate | 6.00% | n.a. (differs) | 6.00% | 6.00% | 5.30% (differs) | 6.00% |
| Average Local Sales Tax Rate | 0.00% | 0.00% | 0.00% | 0.34% (differs) | 0.47% (differs) | 0.60% (differs) |
| Maximum Local Sales Tax Rate | None | None | None | 2.00% (differs) | 2.70% (differs) | 1.40% (differs) |
| Gasoline Tax (Cents per Gallon) | 46.81 | 23.00 (differs) | 35.70 (differs) | 58.70 (differs) | 42.40 (differs) | 35.70 (differs) |
| Diesel Tax (Cents per Gallon) | 47.66 | 22 (differs) | 35.7 (differs) | 74.1 (differs) | 43.5 (differs) | 35.7 (differs) |
| Cigarette Tax (Dollars per Pack of 20) | $5.00 | $2.10 (differs) | $5.07 (differs) | $2.60 (differs) | $0.60 (differs) | $1.20 (differs) |
| Beer Tax (Dollars per Gallon) | $0.60 | $0.263 (differs) | $0.79 (differs) | $0.08 (differs) | $0.2565 (differs) | $0.1774 (differs) |
| Spirits Tax (Dollars per Gallon) | $5.46 | $4.50 (differs) | $6.68 (differs) | $7.48 (differs) | $23.47 (differs) | $8.98 (differs) |
| Vapor Tax Ratio to Cigarette Tax | 214.305% | 5.00% (differs) | 167.4667% (differs) | 104.6667% (differs) | 11.00% (differs) | 7.50% (differs) |
Sales Taxes: Business-to-Business Exemptions
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| Business Inputs | Some Taxable | n.a. (differs) | Some Taxable | Some Taxable | Some Taxable | Some Taxable |
| Farm Equipment | Exempt | n.a. (differs) | Taxable (differs) | Exempt | Exempt | Exempt |
| Office Equipment | Taxable | n.a. (differs) | Taxable | Taxable | Taxable | Taxable |
| Manufacturing Machinery | Exempt | n.a. (differs) | Taxable (differs) | Exempt | Exempt | Exempt |
| Manufacturing Raw Materials | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt |
| Business Fuel and Utilities | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Taxable (differs) |
| Business Leases and Rentals | Taxable | n.a. (differs) | Taxable | Taxable | Taxable | Taxable |
| Information Services | Taxable | n.a. (differs) | Taxable | Exempt (differs) | Exempt (differs) | Taxable |
| Software as a Service (SaaS) | Partial | n.a. (differs) | Taxable (differs) | Taxable (differs) | Exempt (differs) | Taxable (differs) |
| Platform as a Service (PaaS) | Partial | n.a. (differs) | Taxable (differs) | Taxable (differs) | Exempt (differs) | Taxable (differs) |
| Digital B2B Products | Taxable | n.a. (differs) | Taxable | Exempt (differs) | Exempt (differs) | Taxable |
| Payroll Services | Exempt | n.a. (differs) | Taxable (differs) | Exempt | Exempt | Exempt |
| Data Center Purchases | Exempt | n.a. (differs) | Taxable (differs) | Exempt | Exempt | Exempt |
| Digital Advertising Tax | Yes | No (differs) | No (differs) | No (differs) | No (differs) | No (differs) |
Sales Taxes: Consumer Goods and Services in the Base
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| Groceries | Exempt | n.a. (differs) | Exempt | Exempt | Local Tax Only (differs) | Exempt |
| Clothing | Taxable | n.a. (differs) | Taxable | Exempt (differs) | Taxable | Taxable |
| Prescription Medication | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt |
| Nonprescription Medication | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Taxable (differs) |
| Gasoline | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt |
| Landscaping | Exempt | n.a. (differs) | Taxable (differs) | Taxable (differs) | Exempt | Taxable (differs) |
| Repair Services | Exempt | n.a. (differs) | Taxable (differs) | Taxable (differs) | Exempt | Taxable (differs) |
| Real Estate Services | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt |
| Parking | Exempt | n.a. (differs) | Taxable (differs) | Exempt | Exempt | Taxable (differs) |
| Dry Cleaning | Exempt | n.a. (differs) | Taxable (differs) | Exempt | Exempt | Taxable (differs) |
| Fitness Services | Exempt | n.a. (differs) | Taxable (differs) | Exempt | Exempt | Exempt |
| Barber Services | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt |
| Veterinary Services | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt |
| E-Books | Taxable | n.a. (differs) | Taxable | Taxable | Exempt (differs) | Exempt (differs) |
| Streaming Video | Taxable | n.a. (differs) | Taxable | Taxable | Exempt (differs) | Exempt (differs) |
| Medical Services | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt |
| Legal Services | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt |
| Financial Services | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt |
| Accounting Services | Exempt | n.a. (differs) | Exempt | Exempt | Exempt | Exempt |
| Sales Tax Holiday | Yes | n.a. (differs) | No (differs) | No (differs) | Yes | Yes |
Sales Taxes: Sales Tax Structure
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| Uniform Base Definitions | Yes | n.a. (differs) | Yes | Yes | Yes | Yes |
| Unified Tax Administration | Yes | n.a. (differs) | Yes | Yes | Yes | Yes |
| Safe Harbor for Remote Sellers | Sales or Transactions Threshold | n.a. (differs) | Sales or Transactions Threshold | Gross Sales Threshold (differs) | Sales or Transactions Threshold | Sales or Transactions Threshold |
Property Taxes: Property and Capital Stock Tax Rates
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| Property Tax Collections per Capita | $1,982 | $1,086 (differs) | $4,458 (differs) | $1,806 (differs) | $2,296 (differs) | $1,258 (differs) |
| Property Tax as a Percentage of Personal Income | 2.49% | 1.59% (differs) | 3.95% (differs) | 2.55% (differs) | 2.97% (differs) | 2.27% (differs) |
| Assessment Limit | Yes | No (differs) | Yes | No (differs) | No (differs) | No (differs) |
| Levy Limit | No | Yes (differs) | Yes (differs) | No | No | Yes (differs) |
| Capital Stock Tax Rate | None | 0.04% (differs) | None | None | None | None |
| Capital Stock Tax Maximum Payment | n.a. | $200,000 (differs) | n.a. | n.a. | n.a. | n.a. |
| Payment Options for Capital Stock and Corporate Income Taxes | n.a. | Pay both (differs) | n.a. | n.a. | n.a. | n.a. |
Property Taxes: Property Tax Bases
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| Tangible Personal Property Tax | Yes | No (differs) | Yes | No (differs) | Yes | Yes |
| Tangible Personal Property De Minimis Exemption | $20,000 | n.a. (differs) | $225,000 (differs) | n.a. (differs) | None (differs) | None (differs) |
| Intangible Property Tax | No | No | No | No | No | No |
| Inventory Tax | Partial | No (differs) | No (differs) | No (differs) | Partial | Yes (differs) |
| Real Estate Transfer Tax | Yes | Yes | Yes | Yes | Yes | Yes |
| Split Roll | No | Yes (differs) | Yes (differs) | No | No | Yes (differs) |
| Split Roll Ratio | 1.00 | 1.51 (differs) | 1.94 (differs) | 1.00 | 1.00 | 4.00 (differs) |
| Estate Tax | 16% | No (differs) | 16% | No (differs) | No (differs) | No (differs) |
| Inheritance Tax | 10% | No (differs) | No (differs) | 15% (differs) | No (differs) | No (differs) |
| Gift Tax | No | No | No | No | No | No |
Unemployment Insurance Taxes: UI Tax Rates
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| Minimum Rate | 0.31% | 0.40% (differs) | 2.10% (differs) | 1.42% (differs) | 0.10% (differs) | 1.50% (differs) |
| Maximum Rate | 7.50% | 5.40% (differs) | 7.60% (differs) | 10.37% (differs) | 6.20% (differs) | 8.50% (differs) |
| Taxable Wage Base | $8,500 | $14,500 (differs) | $9,000 (differs) | $10,000 (differs) | $8,000 (differs) | $9,500 (differs) |
| Most Favorable Schedule: Minimum Rate | 0.30% | 0.10% (differs) | 0.10% (differs) | 0.00% (differs) | 0.00% (differs) | 0.00% (differs) |
| Most Favorable Schedule: Maximum Rate | 7.50% | 8.00% (differs) | 5.40% (differs) | 8.95% (differs) | 5.40% (differs) | 7.50% |
| Least Favorable Schedule: Minimum Rate | 2.20% | 0.10% (differs) | 1.90% (differs) | 0.00% (differs) | 0.10% (differs) | 1.50% (differs) |
| Least Favorable Schedule: Maximum Rate | 13.50% | 8.00% (differs) | 7.40% (differs) | 8.95% (differs) | 6.20% (differs) | 7.50% (differs) |
| Employer Contributions as a Share of Total Wages | 0.18% | 0.11% (differs) | 0.22% (differs) | 0.58% (differs) | 0.08% (differs) | 0.51% (differs) |
| Employer Contributions as a Share of Taxable Wages | 1.33% | 0.60% (differs) | 2.21% (differs) | 3.40% (differs) | 0.56% (differs) | 2.40% (differs) |
| Trust Fund Solvency Ratio | 1.04 | 0.79 (differs) | 0.68 (differs) | 0.22 (differs) | 0.71 (differs) | 0.81 (differs) |
| New Employer Rate | 1.00% | 1.20% (differs) | 2.70% (differs) | 3.82% (differs) | 2.73% (differs) | 2.70% (differs) |
Unemployment Insurance Taxes: Experience Formulas and Charging Methods
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| Experience Formula Based On | Benefits Ratio | Benefit Wage Ratio (differs) | Reserve Ratio (differs) | Benefits Ratio | Benefits Ratio | Reserve Ratio (differs) |
| Benefits Charged in Proportion to Base-Period Wages | Yes | Yes | Yes | Yes | No (most recent or principal employer) (differs) | Yes |
| Charged If Employee's Benefit Award Is Reversed | No | No | Yes (differs) | No | Yes (differs) | No |
| Charged for Reimbursements on Combined Wage Claims | Yes | No (differs) | Yes | No (differs) | No (differs) | Yes |
| Charged If Employee Left Voluntarily | No | No | No | No | Yes (differs) | No |
| Charged If Employee Was Discharged for Misconduct | No | No | No | No | Yes (differs) | No |
| Charged If Employee Refused Suitable Work | Yes | No (differs) | Yes | Yes | Yes | Yes |
| Charged If Employee Continues to Work Part-Time | No | No | No | No | Yes (differs) | No |
Unemployment Insurance Taxes: Other UI Base Variables
| Variable | Maryland | Delaware | District of Columbia | Pennsylvania | Virginia | West Virginia |
|---|---|---|---|---|---|---|
| Solvency Tax | No | Yes (differs) | No | Yes (differs) | Yes (differs) | No |
| Taxes for Socialized Costs or Negative Balance Employers | No | No | No | No | Yes (differs) | Yes (differs) |
| Loan and Interest Repayment Surtaxes | No | Yes (differs) | Yes (differs) | Yes (differs) | No | Yes (differs) |
| Reserve Taxes | No | No | No | No | No | No |
| Surtaxes for UI Administration or Non-UI Purposes | Yes | Yes | Yes | No (differs) | No (differs) | No (differs) |
| Temporary Disability Insurance | No | No | No | No | No | No |
| Voluntary Contributions | No | No | No | Yes (differs) | No | Yes (differs) |
| Years to Qualify for Experience Rating | 2 | 2 | 3 (differs) | 1.5 (differs) | 1 (differs) | 3 (differs) |
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About the Authors
Janelle Fritts is a Senior Policy Analyst with the Tax Foundation’s Center for State Tax Policy. She is the lead researcher on the annual State Tax Competitiveness Index and serves as a resource to policymakers in their efforts to modernize and improve the structures of their state tax codes. Her work has been cited in The New York Times, the Associated Press, Bloomberg, and numerous state media outlets across the country.
Jared Walczak is a Senior Fellow at the Tax Foundation, where he spent five years as Vice President of State Projects, and president of Walczak Policy Consulting.
Nicole Fox is a Policy Analyst with the Center for State Tax Policy at the Tax Foundation, where she serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
Katherine Loughead is the Vice President of State Tax Policy at the Tax Foundation, where she oversees the state tax policy team’s research agenda and serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
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