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?

Wireless Tax Burden Remains High Due to Federal Surcharge Increase

November 17, 2020

IRS Signals Approval of Entity-Level SALT Cap Workaround, But States Should Still Think Twice

November 11, 2020

Zoom Calls Not a Taxing Matter

October 27, 2020

2021 State Business Tax Climate Index

October 21, 2020

Top Rates in Each State Under Joe Biden’s Tax Plan

October 20, 2020

Maryland Lawmakers Look to Alcohol for New Revenue

September 22, 2020

New Census Data Shows States Beat Revenue Expectations in FY 2020

September 18, 2020

State Tax Changes Effective July 1, 2020

July 9, 2020

Gov. Hogan Vetoes Maryland Digital Advertising Tax Legislation

May 7, 2020

April 24th Afternoon State Tax Update

April 24, 2020

April 10th Afternoon State Tax Update

April 10, 2020

A Visual Guide to Unemployment Benefit Claims

April 2, 2020

Worse Than Advertised: The Legal and Economic Pitfalls of Maryland’s Digital Advertising Tax

March 16, 2020

Excise Taxes on Vapor Products Are Trending

March 11, 2020

Maryland Lawmakers Provide No Solution to Central Issues with Digital Advertisement Tax

March 11, 2020

Maryland Legislature Seeks Revenue with Risky Proposals

February 26, 2020

Maryland Lawmakers Consider Sales Tax Hike on Businesses

February 24, 2020

Facts and Figures 2020: How Does Your State Compare?

February 13, 2020

Banning Flavored Tobacco Could Have Unintended Consequences

February 12, 2020

Maryland Legislators Want to Tax Online Advertising

January 15, 2020