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Maryland Income Tax
Income tax returns should be turned in by April 15th.
Along with the state income tax 23 counties as well as the City of Baltimore place additional income taxes between 1.25% and 3.2%. For more information see the “piggyback” taxes page. There are 10 income tax credits available to qualified taxpayers that can be seen on the credits page of the Maryland tax website.
Maryland Tax Filing Guide
Here are detailed instructions for filing taxes in the state of Maryland.
Consider using TurboTax to E-File your Maryland taxes.
Maryland Residents
You are a legal resident of Maryland if you either lived in Maryland for more than 6 months or if you were a Maryland resident on the last day of the tax year in Maryland. If you are a Maryland resident who filed a federal tax return, you will need to file a Maryland income tax return. You need to also file a Maryland income tax return if your gross income, for the previous year, exceeds the amount in the Filing Requirements table and Instruction 1 of the Maryland resident tax booklet.
Related Tax Forms
- Form 502 - Individual Resident Income Tax Return
- Resident Tax Booklet - Individual Resident Income Tax Booklet
Part-Year Maryland Residents
If in the past year you either started or stopped being a Maryland resident, you will need to file Form 502. This is the only form that Maryland part-year residents may file. In addition to filing an income tax return with Maryland you might need to also file a return with the other state that you were/are a resident of. Please make sure to file returns with both states to avoid receiving a notice from Maryland asking why you failed to fulfill this requirement. The steps for filing your part year return can be found in instruction 26 in the Maryland Tax Booklet.
If you are a part-year resident with a pension make sure to fill out the pension exclusion worksheet. The information you will need to include in the pension exclusion worksheet includes Railroad Retirement benefits, total Social Security, and your total taxable pension. File these pieces of information in the same way that you would if you were a full year resident of Maryland. To know how much to prorate the amount on line 5 divide the number of months that you maintained a Maryland residency by 12. Remember you need to prorate your pension by the number of months you maintained residency (talked about in the previous sentence) by the number of months you received your pension if you started receiving you pension in the same year that you became a resident of Maryland.
Related Tax Forms
- Form 502 - Individual Resident Income Tax Return
- Resident Tax Booklet - Individual Resident Income Tax Booklet
- Pension Exclusion Worksheet - Part-Year Resident Pension Exclusion Worksheet
Maryland Residents who work in another state
If you are a Maryland resident who works in Washington, D.C., Pennsylvania, Virginia or West Virginia, you need to file a resident return with Maryland. Make sure to get a refund with the locality you work in by filling out the appropriate form if your employer withholds taxes for that area. Make sure to get your taxable status from whatever the state’s taxing authority is that you work in. If you are taxed by another state for income earned in that respective state, determine your eligibility for a Maryland tax credit by filling out Form 502CR. If you need to fill out Form 502CR include a copy of the return you filed with the other state with your Maryland tax return.
If you are a Maryland resident who works in Delaware, you need to file a tax return with both Delaware and Maryland. Complete Maryland Form 502CR to get credit with Maryland for all taxes you need to pay Delaware. Filing out Form 502CR will allow you to avoid dual taxation. Use your Maryland income tax return to fill out Form 520CR. A copy of your Delaware return will also need to be included.
Related Tax Forms
- Form 502CR - Individual Income Tax Credits
Non-Residents who work in Maryland
If you work in Maryland and/or make additional income from a Maryland taxable income source, you will be taxed by both the Maryland income tax rate and the 1.25 percent special nonresident tax. See the Maryland nonresident tax booklet for additional filing requirements and information pertaining to nonresidents. Make sure to also complete Form MW507 (Employee's Maryland Withholding Exemption Certificate) if you work in Maryland and aren’t a resident. Form MW507 will be very important to your payroll department for calculating the number of exceptions in your income tax withholding.
If wages are your only source of income from Maryland and you are a resident of a state that borders Maryland (Virginia, Pennsylvania, Washington, D.C., or West Virginia) you are exempt from Maryland income tax. Fill out line 4 of Form MW507, following all instructions, to become exempt from Maryland income tax and any withholdings due to Maryland taxes being placed on your wages.
If wages are your only source of income from a Maryland source, and you are a resident of Delaware, you need to file Form 505 (Maryland Nonresident Income Tax Return) and Form 505NR (Maryland Nonresident Income Tax Calculation). You need to file Form 515 to show taxable wage income if you live in Wilmington.
Residents of Alabama, Delaware, Indiana, Kentucky, Michigan, Missouri, New York, Ohio, and Pennsylvania who are working in Maryland must contact their local government to verify local tax laws and file Maryland Form 515.
For more information see the Maryland Nonresident Tax Booklet.
Related Tax Forms
- Form MW507 - Employee's Withholding Exemption Certificate
- Form 515 - Individual Non-resident Tax Return for Local Tax
- Form 505NR - Individual Non-resident Income Tax Calculation
- Form 505 - Individual Non-resident Income Tax Return
- Nonresident Tax Booklet - Individual Non-resident Income Tax Booklet
Non-Residents who sold property in Maryland
In any sale of real Maryland property, unless there is a specific exemption, tax must be withheld at the time of sale. The amount of tax to be withheld is based on the amount of money that that piece of property sold for. At the time of sale the recorder (the person who is recording the transfer of the deed) must pay the withheld taxes from the point of sale to either the Maryland Department of Assessments and Taxation (MDAT) or the Clerk of the Court. The tax is required to be paid before the deed can transfer hands and the tax must be filed with MDAT or recorded with the Court. See Withholding Requirements for Sales of Real Property by Nonresidents for more information.
For more information see the Maryland Nonresident Tax Booklet.
Related Tax Forms
- Nonresident Tax Booklet - Individual Non-resident Income Tax Booklet
Maryland State Tax Forms
- Form 505NR - Individual Non-resident Income Tax Calculation
- Form 515 - Individual Non-resident Tax Return for Local Tax
- Resident Tax Booklet - Individual Resident Income Tax Booklet
- Pension Exclusion Worksheet - Part-Year Resident Pension Exclusion Worksheet
- Nonresident Tax Booklet - Individual Non-resident Income Tax Booklet
- Form 502 - Individual Resident Income Tax Return
- Form 505 - Individual Non-resident Income Tax Return
- Form 502SU - Maryland Subtractions From Income
- Form 502AC - Subtraction for Contribution of Artwork Form
- Form 502AE - Subtraction for Income Derived in an Arts/Entertainment District Form
- Form 502D - Declaration of Estimated Income Tax
- Form 502E - Application for Extension to File
- Form 502H - Deduction for Preservation of Historic Property Form
- Form 502INJ - Injured Spouse Claim Form
- Form 502TP - Computation of Tax Preference Income Modification Form
- Form 502UP - Underpayment of Estimated Individual Income Tax
- Form 502V - Use of Vehicle for Charitable Purposes Form
- Form 502CR - Individual Income Tax Credits
- Form MW507 - Employee's Withholding Exemption Certificate
Relevant Links
- State of Maryland Tax Website - Official Site
- State of Maryland E-File Service - Offered by Maryland's Official Website
- Additional Tax Forms - A Comprehensive Collection of Maryland Tax Forms
Maryland Mailing Address
Wondering where to mail your Maryland taxes? Here's the address:Comptroller of Maryland
Revenue Administration Division
Annapolis, Maryland 21411-0001
For live support for your Maryland tax return, consider calling them directly:
- Phone: (410) 260-7980 or (800) 638-2937 or
- Email: taxhelp@comp.state.md.us
Maryland Sales Tax
Maryland has a 6% state sales tax. There are no local sales taxes. There is also a 6% use tax on out-of-state tax-free purchases.
