Personal Income
The state requires all employers to withhold both state and local income taxes. Maryland uses federal adjusted gross income as the starting point for determining taxable income for the state.
State Personal Income Tax Rates – 2012
$1 - $1,000 | 2.0% |
$1,001 - $2,000 | 3.0% |
$2,001 - $3,000 | 4.0% |
$3,001 - $150,000 | 4.75% |
$150,001 - $300,000 | 5.0% |
$300,001 - $500,000 | 5.25% |
Over $500,000 | 5.5% |
*Single taxpayers include married filing separately, dependents or fiduciaries.
$1 - $1,000 | 2.0% |
$1,001 - $2,000 | 3.0% |
$2,001 - $3,000 | 4.0% |
$3,001 - $200,000 | 4.75% |
$200,001 - $350,000 | 5.0% |
$350,001 - $500,000 | 5.25% |
Over $500,000 | 5.5% |
* Joint taxpayers include surviving spouses or heads of household.
Source: Comptroller of Maryland
Maryland's 23 counties and Baltimore City impose a personal income tax which is administered and collected by the state. The tax is applied to state taxable income. For the majority of counties, the rate is between two and three percent.
Local Personal Income Tax Rates – 2012
Allegany | 3.05% | Harford | 3.06% |
Anne Arundel | 2.49% | Howard | 3.20% |
Baltimore City | 3.20% | Kent | 2.85% |
Baltimore | 2.85% | Montgomery | 3.20% |
Calvert | 2.80% | Prince George's | 3.20% |
Caroline | 2.63% | Queen Anne's | 3.20% |
Carroll | 3.05% | St. Mary's | 3.00% |
Cecil | 2.80% | Somerset | 3.15% |
Charles | 2.90% | Talbot | 2.25% |
Dorchester | 2.62% | Washington | 2.80% |
Frederick | 2.96% | Wicomico | 3.10% |
Garrett | 2.65% | Worcester | 1.25% |
Source: Comptroller of Maryland