In case you live in Maryland, just like any other state you must be equipped with the right knowledge and documents to file your taxes well within the time and that too accurately enough else you shall get in to the unwanted legal hassles.

Here are some key features of the Income Taxes in Maryland:

1. In order to file the taxes correctly first of all you must know the due date. For Maryland Income taxes, unlike rest of the states the due date is April 17, when you are filing as per the normal calendar year. For the rest of the states the date is April 15.

2. Just like all other states if the due date happens to be a Saturday or Sunday or some legal holiday, the tax return would be filed the very next business day.

3. The state of Maryland also allows some extension period if needed.

4. The happier point is that Maryland Income Taxes are considerably low. Income Tax rate at Maryland for those who are there but are not the residents of Maryland is set at mere 4.75%. For those who are not the residents but are able to get the special non-resident tax rate, the rate is set at 1.25% additional to 4.75% mentioned earlier, that makes it equal to 6%.

5. The Maryland Income Taxes allow for a variety of exemptions. In case you qualify for any of them, each exemption gets you $4200. Some of these exemptions are blindness, age, military or part-time residents and non residence.

6. Just like tax systems in other states, filing the Maryland Income Taxes requires many conditions to be met.

7. The primary condition is that you must be a resident of Maryland.

8. Next, your income must be equal or higher than the minimum amount prescribed by law. This prescribed amount is different for each individual depending on several factors.

9. The requirement minimums are only based on the way you file your taxes. The examples of determining factors are married or single, head of household, widower, etc.

10. The minimum for any and all the categories is $ 3,300 that implies to ones who are married but are filing separately.

11. While filing your taxes the key question where you initialize the filing is the format of filing the taxes. Some of the options available to you are filing booklet and then mailing it, through internet that is e-filing.

12. Another knowledge that you must have is the forms that are required to be filled in. These forms vary for each person. For this factor, e-filing would be 100% correct as the forms would be generated automatically.

By: Abhishek Agarwal

About the Author:

Abhishek is a Tax Consultant and he has got some great tips on Filing And Understanding Taxes! Download his FREE 84 Pages Ebook, “Taxes Made Easy!” from his website . Only limited Free Copies available.


There are four categories of taxation in the State of Maryland in the USA. There are income taxes, sales tax, property tax as well as inheritance and estate tax.

Income tax is levied at different rates for residents and non-residents of Maryland. Residents pay income tax according to four income brackets. Income tax is payable at 2% on the first $1000 of taxable income, at 3% on the next $1000 and 4% on the next $1000 of taxable income. On taxable income of more than $3,001 tax is payable at 4.75%.

Non-residents who work in the state pay an additional 1.25% on top of the 4.75% rate. That brings the effective tax rate to 6%.

The city of Baltimore and the 23 counties of Maryland levy their own income taxes. These are known as “piggy back” taxes. They are set locally but you file them on the same forms as the general state income tax. The funds are then distributed to the local government of the area where you live. They vary from 1.25% to 3.2% of taxable income.

There are 11 income tax credits available to those who are eligible. Details are available from the tax office or the official website.

Sales tax is 5 % in Maryland. It is payable on all purchases. A use tax of 5% is payable on good bought outside the state but used in Maryland. A special form is available for the payment of the use tax.

Property tax is payable on all real properties in Maryland. Property that is owned by charitable, religious and education insitutions is exempt, as are federal, state and local government properties.

When the value of a property increases by more than 10% in a year the increased tax assessment is limited to 10% by the state. Some counties and municipalities follow the same rule.

There are a number of property tax credits and exemptions available. They cover historic properties and a range of other situations. Both property owners and renters may be eligible for exemptions in some cases. It is important to check what is available with your local tax office.

Estate tax is payable on the estates of Maryland residents or property owners who died after December 31, 2001 if the estate was worth more than $1 million after its value has been adjusted for taxable gifts.

Tax forms must be filed by April 15 annually. An extra day is allowed if the due date falls on a Sunday or a public holiday. In line with federal policy Maryland allows an extra day for filing tax forms.

Tax forms can be filed on line using i-File Maryland. This applies to both income tax and other Maryland state taxes. All the schedules and forms are available. If you are within the Old State Line there are facilities to check the status of your tax refunds on line.

By: Abhishek Agarwal

About the Author:

Abhishek is a Tax Consultant and he has got some great tips on Filing And Understanding Taxes! Download his FREE 84 Pages Ebook, “Taxes Made Easy!” from his website . Only limited Free Copies available.

Maryland enjoys honor of being one of the oldest and wealthiest sates of the Union. There are total of four brackets of income tax in Maryland taxes ranging from 2% to 4.75%. Maryland being one of the last states to undertake this also levies piggyback taxes at local level also. These piggyback taxes ranges from 1.25% and go until 3.2%.

In Maryland state, commerce plays an important role in its economy and these revenues supports it. To keep running the state, Maryland needs to keep its busy ports functional and clean for which it requires money which is generated by these Maryland taxes.

You would be surprised to know that the property taxes are not specified in Maryland. However, sales tax is levied at 5% in the state. Moreover, the rates are adjusted in a manner so that it can help provide essential revenues from one county or city to another.

Such adjustments are done annually and are disclosed via a public announcement to dicuss the new tax rates. Taxes in the state are assessed both on land as well as land improvements. An appraisal of the market value of property is done and then it is taxed according to its assessed value. Expanding businesses can even receive credits upon the improvements for their property. Maryland taxes exempt properties used or owned by churches or by any other non-profit organizations.

Maryland taxes are set up like many other states to assist in boom of businesses. Whenever any business establishes itself in Enterprise Zones, it not only improves the value of other commercial properties but also receive tax credits which can last up to ten years or more altogether.

Enterprise Zones are those zones which were considered economically distressed. If you are a developing company then such combination of land tax credits would ease your burden to a large extent. Businesses can also be benefitted by credit upon their Maryland taxes by specializing in fields such as research and development or biotechnology. Women and minority owned businesses would also receive good incentives.

If you compare the taxes in Maryland with other states you would find it to be considerably very higher. Many people who work in nation’s capital usually belong to Maryland only. It would not be wrong to say that the state is highly progressive and notably diverse in numerous ways. Most of the taxes are now imposed at county or city level along with state taxes.

No city, county etc. are deprived of funds as there is abundant revenue with them. Local tax revenue funds all the programs, parks or schools and they stay well funded. It is becoming a center for many businesses as various types of tax credits are often offered to new and old companies.

By: Abhishek Agarwal

About the Author:

Abhishek is a Tax Consultant and he has got some great tips on Filing And Understanding Taxes! Download his FREE 84 Pages Ebook, “Taxes Made Easy!” from his website . Only limited Free Copies available.