Skip to content

Taxes In Maryland

Maryland Tax Rates, Collections, and Burdens

How does Maryland’s tax code compare? Maryland has a graduated 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 a 8.25 percent corporate income tax rate. Maryland has a 6.00 percent state sales tax rate and does not levy any local sales taxes. Maryland’s tax system ranks 46th overall on our 2023 State Business Tax Climate 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: How Does Your State Compare?

See Related Articles

Tax Data by State

Get facts about taxes in your state and around the U.S.

Explore Data

State Tax Data

Individual Taxes

Top Individual Income Tax Rate
5.75%See Full Study
State Local Individual Income Tax Collections per Capita
$1652Rank: 16
State and Local Tax Burden
11.8%Rank: 45See Full Study

Business Taxes

Top Corporate Income Tax Rate
8.25%See Full Study
State Business Tax Climate Index Ranking
46See Full Study

Sales Taxes

State Sales Tax Rate
6.00%Rank: 17See Full Study
Combined State and Average Local Sales Tax Rate
6.00%Rank: 38See Full Study
State and Local General Sales Tax Collections per Capita
$800Rank: 44
State Gasoline Tax Rate (cents per gallon)
36.10¢Rank: 16
State Cigarette Tax Rate (dollars per 20-pack)
$3.75Rank: 4

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
1.05%Rank: 20
State and Local Property Tax Collections Per Capita
$1744Rank: 20

All Related Articles

Maryland ready-to-drink cocktail tax proposal

Maryland Proposes a Lower Tax Category for Ready-to-Drink Cocktails

A tax based on alcohol content would be the most neutral, straightforward means of raising revenue from alcohol. But since such a tax would constitute a redesign of the entire alcohol tax system at both the state and federal levels, the next best approach is to create more categories for new products.

4 min read
state flat tax trend and state flat income taxes 2024

The State Flat Tax Revolution: Where Things Stand Today

In 2021 and 2022 alone, more states enacted laws converting graduated-rate individual income tax structures into single-rate income tax structures than did so in the whole 108-year history of state income taxation up until that point.

10 min read
2024 sales taxes including 2024 sales tax rates 2024 state and local sales tax rates

State and Local Sales Tax Rates, 2024

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).

9 min read
Maryland local income tax hike proposal

Maryland Considers Raising Local Income Taxes

Local income taxes in Maryland constitute about 35 percent of local tax collections and more than 17 percent of local revenue, giving Maryland’s localities the highest dependence on income taxes in the nation.

5 min read
State population changes in 2023 low-tax states and high-tax states United Van Lines U-Haul and Census data

Americans Moved to Low-Tax States in 2023

The pandemic has accelerated changes to the way we live and work, making it far easier for people to move—and they have. As states work to maintain their competitive advantage, they should pay attention to where people are moving, and try to understand why.

5 min read