State Income Tax
Taxable income for Maryland is generally calculated in the same way as the federal income tax and must be filed by April 15. The state’s graduated income tax is imposed at the following rates:
* 2% on the first $1,000 of taxable income
* 3% of the second $1,000
* 4% on the third $1,000
* 5% on taxable income over $3,000
* 6% on taxable income over $100,000
Retail Sales Tax
The State of Maryland imposes sales and use taxes of 5 percent on tangible personal property, lodging, accommodations and special order production. Exemptions include medicine and medical supplies, grocery items, items purchased for resale, and certain machinery and vehicles used for manufacturing and agriculture.
Alcohol and Tobacco Taxes
The Maryland excise tax rates on alcoholic beverages are $1.50 per gallon of distilled spirits, $.40 per gallon of wine, and $.09 per gallon of beer. The tobacco tax rate is $.36 per pack of 20 cigarettes.
Property Tax
Real property is assessed at approximately 40 percent of fair market value. The state tax rate is $.21 per $100 of assessed value. Maryland’s assessment system is based on a three-year cycle where one-third of all taxable real property is reviewed every year. Under this Triennial Assessment Law, owners only receive an assessment notice every three years.
Homestead Exemption
Property tax credit is available to those who are100 percent disabled veterans or 100 percent blind. A credit is allowed to homeowners who earn up to $36,000, elderly or disabled homeowners and also renters.
Inheritance and Estate Taxes
An inheritance tax is imposed on the beneficiary’s right to receive property distributed by will or by state law. Jointly owned property passing to a surviving spouse and the proceeds from insurance policies paid to another beneficiary are not subject to the inheritance tax. The rate is 1 percent on inheritances to direct descendants and the surviving spouse and 10 percent to other beneficiaries. Estate Tax is calculated by deducting the amount of the inheritance tax paid to the Registrar of Wills from the credit for state death taxes allowed on the Federal Estate Tax return.
Maryland Tax Information
Department of Assessments and Taxation
301 W. Preston Street, Room 806
Baltimore, MD 21201
410-767-1184 or 1-800-MD-TAXES
www.state.md.us
Estimated Income Tax
410-260-7850
www.marylandtaxes.com
Individual Income Tax
410-260-7980
www.marylandtaxes.com
Voter Registration
To vote in federal, state and county elections, a person must be 18 years old, a U.S. citizen and a resident of the state. Registration is permitted until 29 days before an election, 10 days after a primary or special election, and 15 days after a general election.
Register in person at the election office in your county. Registration is permanent as long as you continue to live within the jurisdiction, keep your address current with the election board and do not let five years lapse without voting.
Pet Licensing
Maryland requires that residents register their dogs and cats with the local animal control officer. New residents have 30 days to register animals. A rabies certificate from a licensed veterinarian is required. The fees are $4.00 for a spayed or neutered animal and a $15.00 for a non-spayed or neutered pet.
Hunting and Fishing Licenses
A license is required to hunt and fish in Maryland, the Chesapeake Bay, its tributaries, and most freshwater areas. The cost of a license depends upon your residency status, the duration of the license, and the type of game. Parental permission is required for all applicants aged 16 or under to purchase a Maryland hunting license. Senior citizens over the age of 65 can purchase licenses at greatly reduced rates. For specific fees and other information, contact the Department of Natural Resources in Annapolis at 410-836-4550.