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 2022 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?

Maryland Governor Touts Benefits of Film Tax Credits, Despite Evidence to the Contrary

November 19, 2013

D.C. Now Better than Virginia and Maryland on Sales Tax Rates

October 2, 2013

A Letter to the Washington Post in Response to Governor O’Malley’s Op-ed

September 25, 2013

D.C. Poised to Have Area’s Lowest Sales Tax for First Time in 45 Years

September 20, 2013

Maryland Gubernatorial Candidate Considers Corporate Tax Cut

September 10, 2013

Update on the Maryland Rain Tax

July 12, 2013

Maryland Soon to Roll Out the Rain Tax

June 20, 2013

Maryland Legislative Testimony on the State Corporate Income Tax

February 26, 2013

VIDEO: Nick Kasprak on the Local Impacts of the Fiscal Cliff

December 4, 2012

Maryland Democratic Legislators Open to Reducing Corporate Tax Rate

November 14, 2012

State and Local Ballot Initiative Results

November 6, 2012

Maryland’s State and Local Tax Burden

October 23, 2012

Maryland Governor O’Malley Says State Has Third Lowest Taxes in the Country!

October 19, 2012

The Two Hardest (But Most Important) Sales Tax Reforms

August 2, 2012

After Tax Foundation Rebuke, Maryland Governor Admits to Stating Incorrect Virginia Tax Rate

July 12, 2012

Maryland Governor Misstates State Tax Comparisons

July 10, 2012

Maryland Gov. O’Malley Signs Tax Increases into Law

May 24, 2012

VIDEO: Joe Henchman on the Maryland Income Tax Hike

May 18, 2012

Maryland Senate Approves Income Tax Hike; Sneaks in Tobacco Hike Too

May 15, 2012

Maryland Considers Proposal to Extend “Millionaires Tax” to $100,000 Income Level