| There are four categories of taxation in the State of | | | | Property tax is payable on all real properties in |
| Maryland in the USA. There are income taxes, sales | | | | Maryland. Property that is owned by charitable, religious |
| tax, property tax as well as inheritance and estate tax. | | | | and education institutions is exempt, as are federal, |
| Income tax is levied at different rates for residents and | | | | state and local government properties. |
| non-residents of Maryland. Residents pay income tax | | | | When the value of a property increases by more than |
| according to four income brackets. Income tax is | | | | 10% in a year the increased tax assessment is limited |
| payable at 2% on the first $1000 of taxable income, at | | | | to 10% by the state. Some counties and municipalities |
| 3% on the next $1000 and 4% on the next $1000 of | | | | follow the same rule. |
| taxable income. On taxable income of more than | | | | There are a number of property tax credits and |
| $3,001 tax is payable at 4.75%. | | | | exemptions available. They cover historic properties |
| Non-residents who work in the state pay an additional | | | | and a range of other situations. Both property owners |
| 1.25% on top of the 4.75% rate. That brings the | | | | and renters may be eligible for exemptions in some |
| effective tax rate to 6%. | | | | cases. It is important to check what is available with |
| The city of Baltimore and the 23 counties of Maryland | | | | your local tax office. |
| levy their own income taxes. These are known as | | | | Estate tax is payable on the estates of Maryland |
| "piggy back" taxes. They are set locally but you file | | | | residents or property owners who died after |
| them on the same forms as the general state income | | | | December 31, 2001 if the estate was worth more than |
| tax. The funds are then distributed to the local | | | | $1 million after its value has been adjusted for taxable |
| government of the area where you live. They vary | | | | gifts. |
| from 1.25% to 3.2% of taxable income. | | | | Tax forms must be filed by April 15 annually. An extra |
| There are 11 income tax credits available to those who | | | | day is allowed if the due date falls on a Sunday or a |
| are eligible. Details are available from the tax office or | | | | public holiday. In line with federal policy Maryland allows |
| the official website. | | | | an extra day for filing tax forms. |
| Sales tax is 5 % in Maryland. It is payable on all | | | | Tax forms can be filed on line using i-File Maryland. |
| purchases. A use tax of 5% is payable on good | | | | This applies to both income tax and other Maryland |
| bought outside the state but used in Maryland. A | | | | state taxes. All the schedules and forms are available. |
| special form is available for the payment of the use | | | | If you are within the Old State Line there are facilities |
| tax. | | | | to check the status of your tax refunds on line. |