Maryland State Income Tax
Maryland state income tax is imposed on residents and nonresidents who earn certain types of income. Most of the tax revenue comes from wages and tips, bank interest and dividends, capital gains, and retirement income.
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Like most states, Maryland taxes residents and nonresidents on ordinary income. This is money you earn from your job or business and from things like interest, dividends, and royalties. Unlike long-term capital gains, which may get preferential tax treatment, ordinary income is subject to standard state rates. For more information, see the Maryland Residents Tax Booklet or the Maryland Nonresident Tax Booklet.
Your employer will typically withhold federal and Maryland state income taxes from your paycheck. If you are a resident of Maryland, you will also pay local county and Baltimore city income taxes. These local rates are based on where you live rather than where you work. If you are an employee, see the Maryland Wages and Withholding Tax Guide for details. Maryland has a progressive income tax system with five marginal tax brackets for single filers and married filing jointly filers, and four brackets for married filing separately and head of household filers.
Maryland State Income Tax Brackets 2024
Married
| If the Amount of Taxable Income Is: | The Amount of Tax Withholding Should Be: |
|---|---|
| Over $0 but not over $150,000 | 4.75% |
| Over $150,000 but not over $175,000 | $7,125.00 plus 5.00% of excess over $150,000.00 |
| Over $175,000 but not over $225,000 | $8,375.00.00 plus 5.25% of excess over $175,000.00 |
| Over $225,000 but not over $300,000 | $11,000.00 plus 5.50% of excess over $225,000.00 |
| Over $300,000 | $15,125.00 plus 5.75% of excess over $300,000.00 |
Single
| If the Amount of Taxable Income Is: | The Amount of Tax Withholding Should Be: |
|---|---|
| Over $0 but not over $100,000 | 4.75% |
| Over $100,000 but not over $125,000 | $4,750.00 plus 5.00% of excess over $100,000.00 |
| Over $125,000 but not over $150,000 | $6,000.00 plus 5.25% of excess over $125,000.00 |
| Over $150,000 but not over $250,000 | $7,312.50 plus 5.50% of excess over $150,000.00 |
| Over $250,000 | $12,812.50 plus 5.75% of excess over $250,000.00 |
Maryland Deductions and Credits
The state of Maryland has a number of deductions and credits available to residents. For example, make a contribution to the Maryland Prepaid College Trust or the Maryland Broker-Dealer Investment Plan. You can claim a credit on your state income tax return. If you are a teacher, you can also claim a tax credit for tuition expenses that you paid to maintain your teaching certification. And if you are a hunter, you can claim a credit for donating antlerless deer meat to help feed the hungry in Maryland.
How to Pay Income Tax in Maryland?
The state of Maryland has partnered with a payment processor to provide multiple online and over-the-phone options for making state income tax payments. This includes a state income tax refund debit card, which can be used at ATMs and for purchases wherever Mastercard is accepted. The fee for this service is a percentage of the payment amount.
The state also allows taxpayers to pay taxes by check, money order, or cashier’s check. They can also pay in person at one of many Comptroller branch offices. It is recommended that taxpayers make a prior appointment and bring a copy of their tax return or payment voucher to avoid delays. Taxpayers who are unable to pay their taxes in full may qualify for an individual payment plan. Missing a payment can result in the cancellation of the plan and the resumption of collection efforts.
