TAX & LICENSE / STATE TAX SYSTEM

State Income Tax
Maryland imposes a graduated income tax that begins with a rate of 2 percent on the first $1,000 of taxable income. State law allows the City of Baltimore and all 23 Maryland counties to levy a local income taxes at a rate between 1.25 percent and 3.75 percent. For more information on income taxes or answers to specific questions on taxation in Maryland, contact:

Comptroller of Maryland
Taxpayer Service Section
Annapolis, MD 800-218-8160
http://www.marylandtaxes.com

Frequently Requested Numbers
Estate Tax 410-260-7850
Estimated Income Tax 410-260-7980
Income Tax Refunds 410-260-7701
Personal Income Tax 410-260-7980

Property Taxes
All real property in Maryland is subject to the property tax.

Generally, properties that are owned and used by religious, charitable or educational organizations or property owned by the federal, state or local governments are exempt. Property tax bills are issued in July or August of each year by the 23 counties, Baltimore and the 155 incorporated municipalities in Maryland. Tax bills are rendered for the upcoming fiscal year and are effective as of July 1.

Real property is reassessed on a three-year cycle by the Real Property Valuation Division. Every year, one-third of all property in Maryland is reviewed, including an exterior physical inspection of the property.

The amount of the tax bill is determined by two factors: (1) the assessment and (2) the property tax rate. Assessments are based on the fair market value of the property and are issued by the Department of Assessments and Taxation, an agency of state government. Property tax rates are set by each unit of government: the state, counties and cities. For answers to specific questions or further details on property taxes, contact:

Property Tax Information
Baltimore 888-246-5941
http://dat.maryland.gov

Maryland Tax Collection Offices
Anne Arundel County
Annapolis 410-222-1144
http://dat.maryland.gov

Baltimore City
Baltimore 410-396-4940
https://www.baltimorecity.gov

Baltimore County
Towson 410-887-2404
https://www.baltimorecountymd.gov/Agencies/budfin/taxpayerservices/taxrates.html

Carroll County
Westminster 410-386-2085
https://www.carrollcountymd.gov/

Harford County
Bel Air 410-638-3314
www.harfordcountymd.gov

Howard County
Ellicott City 410-313-2195
www.howardcountymd.gov

Prince George’s County
Upper Marlboro 301-952-5025
www.princegeorgescountymd.gov

Sales & Use Taxes
The sales and use tax rate in Maryland is 6 percent on tangible personal property, lodging, accommodations, and special-order production. Rental vehicles can be taxed between 8 and 11 percent. Exemptions include medicine/medical supplies, food, and agricultural/manufacturing supplies or equipment. Use taxes are due on non-taxed out-of-state purchases used in Maryland.

Estate Taxes
An estate tax is imposed in Maryland to absorb the maximum credit allowed under the federal estate tax law for taxes paid to states. This estate tax is only payable when the total inheritance tax liability does not exceed the federal credit.

Maryland Residency
To be considered a Maryland resident, your domicile — the place you consider as your permanent home — must be in Maryland.  This will ordinarily be the address you use for tax returns, your drivers license, official business, and government documents.