Maryland Tax Rates: Income, Sales, Property, and Other Taxes
Meta description: Find Maryland’s state income tax brackets, local income tax rates, sales tax, property tax, and other common tax percentages, with guidance on what the rates mean.
Maryland tax percentages depend on the type of tax, where a person lives, and—in some cases—how much income they earn. The state has a progressive income tax, local income taxes, a statewide general sales tax, and property taxes set by state and local governments. The rates below focus on 2026 rules where applicable; tax laws and local rates can change, so taxpayers should confirm details with the relevant Maryland agency before filing or making financial decisions.
Maryland State Income Tax Rates
Maryland’s individual income tax is progressive: higher portions of taxable income can be taxed at higher marginal rates. For 2026, the state’s graduated rates range from 2% to 6.5%. The top rates apply only to income above specified thresholds, not to every dollar a taxpayer earns.
The 2026 rate schedule includes the following marginal brackets for single filers and married people filing separately. The thresholds shown are based on Maryland taxable income; filing status affects the applicable schedule.
| Maryland taxable income | Marginal state rate |
|---|---|
| $1,000 or less | 2% |
| Over $1,000 through $2,000 | 3% |
| Over $2,000 through $3,000 | 4% |
| Over $3,000 through $100,000 | 4.75% |
| Over $100,000 through $125,000 | 5% |
| Over $125,000 through $150,000 | 5.25% |
| Over $150,000 through $250,000 | 5.5% |
| Over $250,000 through $500,000 | 6% |
| Over $500,000 through $1 million | 6.25% |
| Over $1 million | 6.5% |
These are marginal rates, not flat rates. For example, someone with taxable income above $250,000 does not pay 6% on all of that income. The lower portions are taxed at the rates assigned to their brackets, and the 6% rate applies to the portion above the relevant threshold, up to the next bracket.
Maryland uses different threshold schedules for some filing statuses, including married filing jointly and head of household. The table is a useful overview, but it is not a complete calculation of a particular return. Deductions, credits, income adjustments, and the official tax tables can affect the final state tax bill.
Maryland Local Income Tax Rates
Maryland counties and Baltimore City also impose local income taxes. These are generally calculated as a percentage of Maryland taxable income and are reported through the state income tax system. Depending on the locality, the 2026 local rate generally ranges from 2.25% to 3.20%. The rate is based primarily on the taxpayer’s county or Baltimore City residence, subject to state rules.
Because local rates differ, two Maryland residents with the same income and filing status may owe different total income tax. A resident’s combined state and local marginal rate can be higher than the state rate alone. For instance, a 6% state marginal rate plus a 3.2% local rate represents a combined marginal rate of 9.2% on income in that portion of the schedule—not a flat 9.2% on all income.
Local rates can be updated by county governments. To check the correct figure, taxpayers can consult the Maryland Comptroller’s tax-rate information and verify their county’s current rate. Residents who moved during the year may need to review the rules for allocating income between residences.
Maryland Sales Tax Percentage
Maryland’s general statewide sales and use tax rate is 6%. Unlike states where cities and counties commonly add a general sales tax, Maryland generally does not add local general sales tax rates to the statewide rate. The tax applies to many retail purchases and taxable services, though exemptions and special rules apply.
Some purchases have different treatment. For example, Maryland charges a 9% sales tax on alcoholic beverages. Prepared food, lodging, vehicle purchases, and other transactions may involve specific tax rules, fees, or local charges. A receipt can therefore show a total that differs from 6% even when the general sales tax rate is unchanged.
Sales tax is usually collected by the seller at the time of purchase. Use tax may apply when a buyer purchases taxable goods outside Maryland without paying the required Maryland tax and then brings or uses those goods in the state. The Comptroller’s guidance explains which goods and services are taxable and how exemptions work.
Maryland Property Tax Rates
There is no single statewide percentage that describes the total property tax for every Maryland home. A property owner’s bill can include state, county, and municipal taxes. Local rates vary substantially, and the tax is generally calculated using the property’s assessed value and the applicable rate per $100 of assessed value.
Maryland’s state real property tax rate is $0.112 per $100 of assessed value for fiscal year 2026. That equals 0.112% of assessed value before county and municipal taxes are added. Local governments set their own rates, so the state portion is only one part of the bill. The fiscal year and tax year can differ in timing, making it important to check the period shown on a bill.
For a simplified example, a property assessed at $400,000 would have a state-only property tax calculation of $448 at a rate of $0.112 per $100: $400,000 divided by 100, then multiplied by $0.112. The actual bill would usually be higher after local taxes and any applicable credits or adjustments.
Property owners can review their assessment, local tax rates, and potential credits through the Maryland State Department of Assessments and Taxation and their county finance or tax office. The Homestead Tax Credit may limit increases in taxable assessment for an eligible owner-occupied home, but it does not change the property’s market value.
Maryland Corporate Income Tax
Maryland’s corporate income tax rate is 8.25% of the corporation’s Maryland taxable income. This is a state tax rate; businesses may also face local taxes, federal income tax, payroll taxes, or other obligations depending on their structure and activity.
Corporate tax treatment depends on how a business is organized. C corporations generally pay corporate income tax, while many partnerships, sole proprietorships, and S corporations report business income through owners’ individual tax returns. Business owners should distinguish the entity’s tax obligations from the personal income tax that may apply to business profits.
Estate and Inheritance Taxes
Maryland has both an estate tax and an inheritance tax, which are different taxes. The Maryland estate tax has a top rate of 16% and generally applies to taxable estates above the state’s $5 million exclusion amount, subject to the applicable rules. An estate tax is imposed on the estate before assets are distributed to beneficiaries.
The Maryland inheritance tax is generally 10% on property passing to certain beneficiaries. Many close family members, including a spouse, child, parent, grandchild, or sibling, are exempt, but exemptions depend on the beneficiary relationship and the type of property. Because estate and inheritance tax rules can depend on the estate’s size, ownership, and distribution plan, professional advice may be useful.
Other Maryland Taxes and Fees
Maryland drivers may encounter taxes and fees that do not have one simple statewide percentage. Motor fuel taxes, vehicle titling charges, registration fees, and excise taxes can change or depend on the transaction. Vehicle purchases may involve sales and use tax, while fuel taxes are generally built into the price at the pump.
Maryland also taxes certain regulated products and transactions under separate rules. The amount due may depend on the product, location, or type of sale. For a specific purchase, the seller’s invoice and the relevant agency’s current schedule are more reliable than applying the general 6% sales tax rate to every item.
How to Estimate Maryland Taxes
A practical estimate starts by identifying the tax category. For income, determine Maryland taxable income, filing status, and county of residence; then calculate state and local taxes separately. For a purchase, check whether the item is subject to the general 6% sales tax or a special rate. For real estate, use assessed value and add the state, county, and municipal rates shown for the property.
- Income tax: Use the rate schedule for the correct tax year and filing status, then add the applicable local rate.
- Sales tax: Confirm whether the transaction is taxable and whether a special rate applies.
- Property tax: Check the assessment and all tax rates listed for the property’s jurisdiction.
- Business, estate, or vehicle taxes: Review the rules specific to the entity, beneficiary, or transaction.
Tax percentages are only one part of the calculation. Taxable income, deductions, credits, exemptions, residency, and local jurisdiction can change the final amount. The Maryland Comptroller’s website provides individual and business tax forms, filing instructions, and rate schedules; local governments and the State Department of Assessments and Taxation provide additional property-tax information.
Quick Reference: Maryland Tax Percentages
| Tax type | Typical rate or range | What determines the final amount |
|---|---|---|
| State individual income tax | 2%–6.5% for 2026 | Taxable income and filing status |
| Local income tax | Generally 2.25%–3.20% for 2026 | County or Baltimore City residence |
| General sales and use tax | 6% | Taxability of the purchase |
| Alcoholic beverage sales tax | 9% | Type of beverage and transaction |
| State real property tax | $0.112 per $100 of assessed value for FY2026 | Assessment, local rates, and credits |
| Corporate income tax | 8.25% | Maryland taxable corporate income |
| Estate tax | Up to 16% | Taxable estate and applicable exclusion |
| Inheritance tax | Generally 10% for nonexempt transfers | Beneficiary relationship and property type |
For current forms, filing deadlines, and rate details, taxpayers can refer to the Maryland Comptroller, the Maryland State Department of Assessments and Taxation, and their local government’s tax office. Tax years and fiscal years do not always align, so the year attached to a rate should be checked before using it.