Maryland Taxes

Maryland taxes individual income on a graduated scale from 2% to 6.50% (Tax–General § 10-105). For single filers the 6.25% rate covers taxable income of $500,001 through $1,000,000 and 6.50% applies above $1,000,000; for joint filers, surviving spouses and heads of household 6.25% covers $600,001 through $1,200,000 and 6.50% applies above $1,200,000. Filers with federal adjusted gross income over $350,000 also pay an additional 2% on net capital gain, with exclusions such as a primary residence sold for less than $1,500,000 and gains inside 401(k)-type plans. On top of the state tax, every county and Baltimore City levies a county income tax that must be at least 2.25% and no more than 3.30% of Maryland taxable income (§ 10-106), so your total rate depends on where you live.

Maryland's combined motor fuel tax on gasoline is $0.466 per gallon (46.6 cents) effective July 1, 2026, per the Comptroller's FY2027 rate chart; diesel is $0.4745. The gasoline rate is built from the base motor fuel tax of $0.235 (the June 30, 2013 rate), a $0.104 cumulative Consumer Price Index adjustment and a $0.127 sales-and-use-tax-equivalent (SUTE) component under Chapter 429 of the 2013 Maryland General Assembly; it is recalculated each July 1. No gas-tax suspension is in effect in Maryland. The 18.4-cent federal gasoline tax is extra.

Assessed by the state (SDAT) at fair market value on a 3-year cycle, with any increase phased in over 3 years; state, county, and municipal tax rates then apply to the assessment. The Homestead Tax Credit caps annual taxable-assessment growth at 10% (localities may set 0–10%), and an income-based Homeowners' Property Tax Credit is available. Varies by county.