Maryland State Income Tax Overview

Maryland is one of the many states that imposes a state income tax on its residents or those who earn money from a Maryland source.  This is a separate tax from the federal income tax governed by the Internal Revenue Service (IRS).

Following are common questions and answers related to Maryland state income tax

Who has to file a state income tax return for Maryland?

Anyone for which all of the following are true must file a state income tax return in Maryland:

  • You are a resident of Maryland or you were a resident of Maryland anytime during the tax year
  • You must file a federal income tax return
  • Your gross income for Maryland exceeds the income threshold level for your filing status

The income threshold levels for each filing status is as follows for the 2011 tax year:

Filing Status Gross Income
Single  
Under 65 $ 9,500
65 or older $ 10,950
Head of Household
Under 65 $ 12,200
65 or older $13,650
Married Filing Jointly
Both under 65 $ 19,000
One spouse 65 or older $20,150
Both 65 or older $ 21,300
Married Filing Separately
All (regardless of age) $ 3,700
Qualifying Widow(er)
Under 65 $ 15,300
65 or older $ 16,450
Dependent Taxpayer
A single person who can be claimed as a dependent on the federal return of parent or other person $ 9,500

What tax rates does Maryland impose for state income tax purposes?

Maryland uses a graduated tax rate based on a combination of a person’s filing status and income level.  The table below provides a summary of the tax rates.

2011 Maryland Income Tax Rates

Taxpayers Filing as Single, Married Filing Separately, Dependent Taxpayers or Fiduciaries Taxpayers Filing Joint Returns, Head of Household, or Qualifying Widows/Widowers
Taxable Net Income Maryland Tax Taxable Net Income Maryland Tax
$0 – $1,000 2 percent $0 – $1,000 2 percent
$1,000 – $2,000 $20 plus 3 percent of the excess over $1,000 $1,000 – $2,000 $20 plus 3 percent of the excess over $1,000
$2,000 – $3,000 $50 plus 4 percent of the excess over $2,000 $2,000 – $3,000 $50 plus 4 percent of the excess over $2,000
$3,000 – $150,000 $90 plus 4.75 percent of the excess over $3,000 $3,000 – $200,000 $90 plus 4.75 percent of the excess over $3,000
$150,000 – $300,000 $7,072.50 plus 5 percent of the excess over $150,000 $200,000 – $350,000 $9,447.50 plus 5 percent of the excess over $200,000
$300,000 – $500,000 $14,572.50 plus 5.25 percent of the excess over $300,000 $350,000 – $500,000 $16,947.50 plus 5.25 percent of the excess over $350,000
$500,000 $25,072.50 plus 5.5 percent of the excess over $500,000 $500,000 $24,822.50 plus 5.5 percent of the excess over $500,000

In addition, non-residents pay an additional 1.25 percent tax on income earned from Maryland sources, in addition to the tax rate noted in the table above.

When must I file my state income tax return for Maryland?

Maryland state income tax follows the same due date as does federal income tax: April 15 or the first business day after April 15 if it falls on a holiday or weekend.  Maryland permits anyone to obtain a six-month extension for the filing of your state income tax return, but any tax due must be paid by the original filing date of April 15.

Does anyone offer help in preparing my state income taxes?

Yes, you can contact a tax attorney to obtain assistance in preparing your Maryland state income tax return.

by Mark Johnston

Mark has been a contributor to legal web sites related to bankruptcy, tax, and criminal law since 2011. He has an Accounting degree from Texas A&M University.