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|
|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|
|Under 65||$ 15,300|
|65 or older||$ 16,450|
|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.
- Arizona State Income Tax Overview (taxlawhome.com)
- Ohio State Income Tax Overview (taxlawhome.com)
- Virginia State Income Tax Overview (taxlawhome.com)
- North Carolina State Income Tax Overview (taxlawhome.com)
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.