How to compute md-income-tax for Maryland, tax year 2025: rates, thresholds, and step-by-step rules with primary-source citations.
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Annual return filing deadline (TY2026)
April 15, 2027Md. Code Ann., Tax–General, Title 10; Form 502
State rate: $0 – $1,000
2.00%Md. Code Ann., Tax–General, § 10-105
State rate: $1,001 – $2,000
3.00% ($20 + 3.00% of excess over $1,000)Md. Code Ann., Tax–General, § 10-105
State rate: $2,001 – $3,000
4.00% ($50 + 4.00% of excess over $2,000)Md. Code Ann., Tax–General, § 10-105
State rate: $3,001 – $100,000
4.75% ($90 + 4.75% of excess over $3,000)Md. Code Ann., Tax–General, § 10-105
State rate: $100,001 – $125,000
5.00% ($4,697.50 + 5.00% of excess over $100,000)Md. Code Ann., Tax–General, § 10-105
State rate: $125,001 – $150,000
5.25% ($5,947.50 + 5.25% of excess over $125,000)Md. Code Ann., Tax–General, § 10-105
State rate: $150,001 – $250,000
5.50% ($7,260.00 + 5.50% of excess over $150,000)Md. Code Ann., Tax–General, § 10-105
State rate: $250,001 – $500,000
5.75% ($12,760.00 + 5.75% of excess over $250,000)Md. Code Ann., Tax–General, § 10-105
State rate: $500,001 – $1,000,000
6.25% ($27,135.00 + 6.25% of excess over $500,000)Md. Code Ann., Tax–General, § 10-105
State rate: Over $1,000,000
6.50% ($58,385.00 + 6.50% of excess over $1,000,000)Md. Code Ann., Tax–General, § 10-105
State rate: $0 – $1,000
2.00%Md. Code Ann., Tax–General, § 10-105
State rate: $1,001 – $2,000
3.00% ($20 + 3.00% of excess over $1,000)Md. Code Ann., Tax–General, § 10-105
State rate: $2,001 – $3,000
4.00% ($50 + 4.00% of excess over $2,000)Md. Code Ann., Tax–General, § 10-105
State rate: $3,001 – $150,000
4.75% ($90 + 4.75% of excess over $3,000)Md. Code Ann., Tax–General, § 10-105
State rate: $150,001 – $175,000
5.00% ($7,072.50 + 5.00% of excess over $150,000)Md. Code Ann., Tax–General, § 10-105
State rate: $175,001 – $225,000
5.25% ($8,322.50 + 5.25% of excess over $175,000)Md. Code Ann., Tax–General, § 10-105
State rate: $225,001 – $300,000
5.50% ($10,947.50 + 5.50% of excess over $225,000)Md. Code Ann., Tax–General, § 10-105
State rate: $300,001 – $600,000
5.75% ($15,072.50 + 5.75% of excess over $300,000)Md. Code Ann., Tax–General, § 10-105
State rate: $600,001 – $1,200,000
6.25% ($32,322.50 + 6.25% of excess over $600,000)Md. Code Ann., Tax–General, § 10-105
State rate: Over $1,200,000
6.50% ($69,822.50 + 6.50% of excess over $1,200,000)Md. Code Ann., Tax–General, § 10-105
Baltimore City piggyback rate
3.20% (Flat)Md. Code Ann., Tax–General, § 10-106
Allegany County piggyback rate
3.20% (Flat)Md. Code Ann., Tax–General, § 10-106
Anne Arundel County piggyback rate
2.25%–3.20% (Progressive)Md. Code Ann., Tax–General, § 10-106
Baltimore County piggyback rate
3.20% (Flat)Md. Code Ann., Tax–General, § 10-106
Calvert County piggyback rate
3.20% (Flat)Md. Code Ann., Tax–General, § 10-106
Caroline County piggyback rate
3.20% (Flat)Md. Code Ann., Tax–General, § 10-106
Carroll County piggyback rate
3.03% (Flat)Md. Code Ann., Tax–General, § 10-106
Cecil County piggyback rate
2.74% (Flat)Md. Code Ann., Tax–General, § 10-106
Charles County piggyback rate
3.03% (Flat)Md. Code Ann., Tax–General, § 10-106
Dorchester County piggyback rate
3.30% (Flat)Md. Code Ann., Tax–General, § 10-106
Frederick County piggyback rate
Progressive (see Comptroller instructions)Md. Code Ann., Tax–General, § 10-106
Garrett County piggyback rate
2.65% (Flat)Md. Code Ann., Tax–General, § 10-106
Harford County piggyback rate
3.06% (Flat)Md. Code Ann., Tax–General, § 10-106
Howard County piggyback rate
3.20% (Flat)Md. Code Ann., Tax–General, § 10-106
Kent County piggyback rate
3.20% (Flat)Md. Code Ann., Tax–General, § 10-106
Montgomery County piggyback rate
3.20% (Flat)Md. Code Ann., Tax–General, § 10-106
Prince George's County piggyback rate
3.20% (Flat)Md. Code Ann., Tax–General, § 10-106
Queen Anne's County piggyback rate
3.20% (Flat)Md. Code Ann., Tax–General, § 10-106
Somerset County piggyback rate
3.20% (Flat)Md. Code Ann., Tax–General, § 10-106
St. Mary's County piggyback rate
3.20% (Flat)Md. Code Ann., Tax–General, § 10-106
Talbot County piggyback rate
2.40% (Flat)Md. Code Ann., Tax–General, § 10-106
Washington County piggyback rate
3.00% (Flat)Md. Code Ann., Tax–General, § 10-106
Wicomico County piggyback rate
3.20% (Flat)Md. Code Ann., Tax–General, § 10-106
Worcester County piggyback rate
2.25% (Flat)Md. Code Ann., Tax–General, § 10-106
County of residence determination date
December 31 (last day of tax year)Md. Code Ann., Tax–General, § 10-106
Standard deduction — Single / MFS / Dependent
15% of Maryland AGI; minimum $1,800, maximum $3,350Md. Code Ann., Tax–General, § 10-217
Standard deduction — MFJ / HoH / QSS
15% of Maryland AGI; minimum $3,600, maximum $6,700Md. Code Ann., Tax–General, § 10-217
Personal exemption per taxpayer / spouse / dependent (TY2025)
$3,200Md. Code Ann., Tax–General, § 10-211
Additional exemption — age 65+ or blind (per qualifying condition)
$1,000Md. Code Ann., Tax–General, § 10-211
Personal exemption phase-out threshold — Single
Above ~$100,000Md. Code Ann., Tax–General, § 10-211
Personal exemption phase-out threshold — MFJ
Above ~$150,000Md. Code Ann., Tax–General, § 10-211
Social Security benefits — Maryland state exemption
Fully exemptMd. Code Ann., Tax–General, § 10-207(q)
Pension exclusion — age 65+ or permanently disabled (TY2025)
Up to $39,500Md. Code Ann., Tax–General, § 10-209
Two-income subtraction (MFJ)
Up to $1,200Md. Code Ann., Tax–General, § 10-207(m)
U.S. government bond interest — Maryland exemption
Fully exemptMd. Code Ann., Tax–General, § 10-207(a)
Out-of-state bond interest — add-back
Full amount added back to Maryland incomeMd. Code Ann., Tax–General, § 10-204
IRC §168(k) bonus depreciation — Maryland decoupling add-back
Maryland decouples from IRC §168(k); bonus depreciation must be added backMd. Code Ann., Tax–General, § 10-210.1
Estimated tax payment threshold — self-employed
$500 or more in combined state and county tax expectedMd. Code Ann., Tax–General, Title 10; Form 502D
Estimated tax Q1 due date
April 15Md. Code Ann., Tax–General, Title 10; Form 502D
Estimated tax Q2 due date
June 15Md. Code Ann., Tax–General, Title 10; Form 502D
Estimated tax Q3 due date
September 15Md. Code Ann., Tax–General, Title 10; Form 502D
Estimated tax Q4 due date
January 15 (following year)Md. Code Ann., Tax–General, Title 10; Form 502D
Federal QBI deduction (IRC §199A) — Maryland treatment
Not allowed; Maryland starts from federal AGI (before QBI deduction)Md. Code Ann., Tax–General, Title 10
Scope. This skill covers Maryland Form 502 (Resident Income Tax Return) for sole proprietors and single-member LLCs. It addresses the 10-bracket graduated state income tax, mandatory county/Baltimore City piggyback taxes, and Maryland-specific deductions. It does NOT cover nonresident returns (Form 505), part-year returns, corporate returns (Form 500), or the pass-through entity tax (Form 510).
Quality tier. Q3 — AI-drafted, not independently verified. All outputs must be reviewed by a qualified tax professional before filing.
State income tax brackets — Single, Married Filing Separately, Dependent (TY2025+)
| Taxable net income | Rate | Tax calculation |
|---|---|---|
| $0 – $1,000 | 2.00% | 2.00% of taxable net income |
| $1,001 – $2,000 | 3.00% | $20 + 3.00% of excess over $1,000 |
| $2,001 – $3,000 | 4.00% | $50 + 4.00% of excess over $2,000 |
| $3,001 – $100,000 | 4.75% | $90 + 4.75% of excess over $3,000 |
| $100,001 – $125,000 | 5.00% | $4,697.50 + 5.00% of excess over $100,000 |
| $125,001 – $150,000 | 5.25% | $5,947.50 + 5.25% of excess over $125,000 |
| $150,001 – $250,000 | 5.50% | $7,260.00 + 5.50% of excess over $150,000 |
| $250,001 – $500,000 | 5.75% | $12,760.00 + 5.75% of excess over $250,000 |
| $500,001 – $1,000,000 | 6.25% | $27,135.00 + 6.25% of excess over $500,000 |
| Over $1,000,000 | 6.50% | $58,385.00 + 6.50% of excess over $1,000,000 |
State income tax brackets — Married Filing Jointly, Head of Household, Qualifying Surviving Spouse
| Taxable net income | Rate | Tax calculation |
|---|---|---|
| $0 – $1,000 | 2.00% | 2.00% of taxable net income |
| $1,001 – $2,000 | 3.00% | $20 + 3.00% of excess over $1,000 |
| $2,001 – $3,000 | 4.00% | $50 + 4.00% of excess over $2,000 |
| $3,001 – $150,000 | 4.75% | $90 + 4.75% of excess over $3,000 |
| $150,001 – $175,000 | 5.00% | $7,072.50 + 5.00% of excess over $150,000 |
| $175,001 – $225,000 | 5.25% | $8,322.50 + 5.25% of excess over $175,000 |
| $225,001 – $300,000 | 5.50% | $10,947.50 + 5.50% of excess over $225,000 |
| $300,001 – $600,000 | 5.75% | $15,072.50 + 5.75% of excess over $300,000 |
| $600,001 – $1,200,000 | 6.25% | $32,322.50 + 6.25% of excess over $600,000 |
| Over $1,200,000 | 6.50% | $69,822.50 + 6.50% of excess over $1,200,000 |
County / Baltimore City piggyback tax rates (TY2025)
| Jurisdiction | Rate | Type |
|---|---|---|
| Baltimore City | 3.20% | Flat |
| Allegany County | 3.20% | Flat |
| Anne Arundel County | 2.25%–3.20% | Progressive |
| Baltimore County | 3.20% | Flat |
| Calvert County | 3.20% | Flat |
| Caroline County | 3.20% | Flat |
| Carroll County | 3.03% | Flat |
| Cecil County | 2.74% | Flat |
| Charles County | 3.03% | Flat |
| Dorchester County | 3.30% | Flat |
| Frederick County | Progressive | Progressive |
| Garrett County | 2.65% | Flat |
| Harford County | 3.06% | Flat |
| Howard County | 3.20% | Flat |
| Kent County | 3.20% | Flat |
| Montgomery County | 3.20% | Flat |
| Prince George's County | 3.20% | Flat |
| Queen Anne's County | 3.20% | Flat |
| Somerset County | 3.20% | Flat |
| St. Mary's County | 3.20% | Flat |
| Talbot County | 2.40% | Flat |
| Washington County | 3.00% | Flat |
| Wicomico County | 3.20% | Flat |
| Worcester County | 2.25% | Flat |
Note: Anne Arundel and Frederick counties use progressive local brackets. See Comptroller instructions for details.
Standard deduction table
| Filing status | Amount |
|---|---|
| Single / MFS / Dependent | 15% of Maryland AGI, min $1,800, max $3,350 |
| MFJ / HoH / QSS | 15% of Maryland AGI, min $3,600, max $6,700 |
Personal exemption table
| Category | Amount (TY2025) |
|---|---|
| Each taxpayer, spouse, dependent | $3,200 |
| Additional for age 65+ or blind | $1,000 per qualifying condition |
Personal exemptions phase out for higher incomes (above ~$100,000 single / ~$150,000 MFJ — see Form 502 instructions).
Additions to income table
| Item | Description | Source |
|---|---|---|
| Out-of-state bond interest | Interest on bonds of other states | Md. Tax–General § 10-204 |
| Bonus depreciation add-back | Maryland decouples from IRC §168(k) bonus depreciation | Md. Tax–General § 10-210.1 |
| Other IRC decoupling items | Maryland may decouple from certain federal provisions — verify annually | Md. Tax–General § 10-107 |
Subtractions from income table
| Item | Description | Source |
|---|---|---|
| U.S. government interest | Interest on U.S. obligations | Md. Tax–General § 10-207(a) |
| Social Security benefits | Maryland fully exempts Social Security from state tax | Md. Tax–General § 10-207(q) |
| Pension exclusion | Up to $39,500 (2025) for qualifying taxpayers age 65+ or permanently disabled | Md. Tax–General § 10-209 |
| Military pay | Various exclusions for active-duty and reserve service | Md. Tax–General § 10-207 |
| Child/dependent care expenses | Subtraction based on federal credit amount | Md. Tax–General § 10-207 |
| Two-income subtraction (MFJ) | Up to $1,200 for two-earner married couples | Md. Tax–General § 10-207(m) |
Estimated tax payment schedule
| Voucher | Due date |
|---|---|
| 1st quarter | April 15 |
| 2nd quarter | June 15 |
| 3rd quarter | September 15 |
| 4th quarter | January 15 (following year) |
Use Form 502D for estimated payments.
Tier 1 rules table
| Rule | Description |
|---|---|
| R-1 | Apply the 10-bracket graduated rate schedule based on filing status. |
| R-2 | Apply the county/city piggyback tax rate based on county of residence as of December 31. |
| R-3 | Start from federal AGI and apply Maryland additions and subtractions. |
| R-4 | Standard deduction is 15% of Maryland AGI, with minimums and maximums based on filing status. |
| R-5 | Personal exemptions are $3,200 per person; they phase out above $100,000/$150,000 AGI. |
| R-6 | Social Security is fully exempt. |
| R-7 | U.S. government bond interest is exempt. |
| R-8 | Add back interest from out-of-state municipal bonds. |
| R-9 | Both state and county taxes are computed on the same Maryland taxable net income. |
| R-10 | The county tax base = Maryland taxable net income (same as the state tax base, Form 502, Line 21). |
Tier 2 rules table
| Rule | Description |
|---|---|
| J-1 | Determine whether the personal exemption phase-out applies based on income level. |
| J-2 | Evaluate whether Maryland itemized deductions exceed the standard deduction (15% of AGI with caps). |
| J-3 | Determine the correct county rate when the taxpayer moved during the year (use county as of Dec 31). |
| J-4 | Assess Maryland IRC conformity for bonus depreciation and other decoupling areas. |
| J-5 | Determine eligibility for the pension exclusion ($39,500 for age 65+). |
| J-6 | Evaluate credit for taxes paid to other states (important for D.C./VA border commuters). |
| J-7 | Apply Anne Arundel or Frederick County progressive local rates when applicable. |
Supplier pattern library table
| Pattern | Maryland treatment |
|---|---|
| Freelance income (Schedule C) | Flows through federal AGI → Maryland AGI. Subject to state graduated rates + county rate. |
| Rental income (Schedule E) | Flows through federal AGI → Maryland AGI. Subject to both state and county tax. |
| Capital gains | Fully taxable at graduated state rates + county rate. |
| Interest / dividends | Taxable except U.S. and Maryland obligations (exempt). |
| Social Security | Fully exempt from Maryland state and county income tax. |
| Pension / retirement | Up to $39,500 exempt for age 65+ (pension exclusion). Remainder taxable. |
Form 502 mapping table
| Form 502 line | Description | Source |
|---|---|---|
| Line 1 | Federal AGI (Form 1040, Line 11) | Federal return |
| Lines 2–6 | Additions to income | Md. Tax–General § 10-204 |
| Lines 7–14 | Subtractions from income | Md. Tax–General §§ 10-207, 10-209 |
| Line 16 | Maryland AGI | Computed |
| Line 17 | Standard or itemized deduction | Md. Tax–General § 10-217 |
| Line 19 | Personal exemptions | Md. Tax–General § 10-211 |
| Line 20 | Net taxable income (before additional deductions) | Computed |
| Line 21 | Maryland taxable net income | Computed |
| Line 22 | Maryland state tax (from tax table or rate schedule) | Md. Tax–General § 10-105 |
| Line 24 | County/city tax | Md. Tax–General § 10-106 |
| Line 27 | Total Maryland tax | Line 22 + Line 24 |
| Lines 28–38 | Credits (earned income, poverty level, child/dependent care) | Various |
| Lines 39–46 | Payments, withholding, estimated payments | Various |
| Line 50 | Balance due or refund | Computed |
Refusal catalogue table
| Code | Situation | Action |
|---|---|---|
| REF-MD-01 | Taxpayer is a nonresident or part-year resident | Refuse; requires Form 505 or 515. |
| REF-MD-02 | Taxpayer lives in Anne Arundel or Frederick County (progressive local rates) | Flag for reviewer — requires local bracket lookup. |
| REF-MD-03 | Taxpayer has pass-through entity tax (PTET) election | Flag for reviewer — requires Form 510. |
| REF-MD-04 | Taxpayer claims complex credits (e.g., Biotechnology, Film, Heritage Structure) | Flag for reviewer — separate forms required. |
| REF-MD-05 | Taxpayer is a D.C. or Virginia commuter needing credit for taxes paid to other states | Flag for reviewer — reciprocal agreements and credit computation needed. |
| REF-MD-06 | Taxpayer's personal exemptions are subject to the income-based phase-out | Flag for reviewer — verify exemption reduction calculation. |
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.
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