The facts on Maryland’s Tax Climate

  • 5.5%
    individual income tax
    seven brackets
  • 8.25%
    corporate income tax
    flat rate
  • 6.0%
    sales tax
  • $1,205
    property tax
    collections per capita

Maryland’s Individual Income Tax System 
Maryland’s personal income tax system consists of seven separate brackets with a top rate of 5.5%, kicking in at an income level of $500,000. Among states levying an individual income tax, Maryland’s top rate ranks 29th highest nationally. Maryland’s 2010 state-level individual income tax collections were $1,077 per person, which ranked 10th highest nationally.
50-State Table of Individual Income Tax Rates

50-State Table of State Individual Income Tax Collections

50-State Table of State and Local Individual Income Tax Collections Per Capita

Tax Freedom Day Arrives on April 23 in Maryland

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2012, Maryland taxpayers work until April 23 (ranked 5th nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Virginia, April 20 (ranked 11th nationally); DC, April 20 (ranked 11th nationally); West Virginia, April 8 (ranked 39th nationally); Pennsylvania, April 18 (ranked 14th nationally); and Delaware, April 17 (ranked 17th nationally).

Maryland’s State and Local Tax Burden Slightly Above National Average

Maryland’s 2009 state and local tax burden of 10.0% of income is slightly above the national average of 9.8%. Maryland’s tax burden has decreased overall from 11.0% (11th nationally) in 1977 to 10.0% (12th nationally) in 2009. Maryland taxpayers pay $5,218 per capita in state and local taxes.
Maryland’s State-Local Tax Burden, 1977-Present
Other States’ State/Local Tax Burdens
Map of U.S. Showing all State’s Burdens and Ranks
Historical Chart Comparing All States’ State/Local Tax Burdens from 1977 to 2009

Maryland’s 2013 Business Tax Climate Index Ranks 41st

Maryland ranks 41st in the Tax Foundation’s State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Delaware (14th), Pennsylvania (19th), West Virginia (23rd), and Virginia (27th).

50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)