What are the tax rates in Maryland?

The tax rates in Maryland can be categorized into several areas, such as income tax, sales tax, and property tax. Each of these tax categories is essential for Maryland residents to understand, as they impact various aspects of financial planning and budgeting. Maryland has a progressive state income tax system, which means that tax rates increase as income levels rise. The state income tax rates range from two percent to five point seventy-five percent, applied to different income brackets. For instance, lower income earners pay a lower tax percentage, while higher income earners are subject to the higher rates. In addition to the state income tax, counties in Maryland can levy local income taxes, which typically range from one point seventy-five percent to three point twenty-five percent. This means that residents will pay both state and local income taxes based on their total taxable income. The state imposes a six percent sales tax on most goods and services. However, there are exceptions for certain items, such as groceries and prescription medications, which are exempt from sales tax. Property tax in Maryland is assessed at the county level, and the state average rate is approximately one point one percent of the property's assessed value. Property tax rates can vary by county, so homeowners should consult local resources for specific rates applicable to their area. For accurate and detailed information about current tax rates and any changes, individuals may wish to consult the Maryland Comptroller's official website. The website provides comprehensive resources and updates reflecting the latest tax-related information for residents and businesses in Maryland.