Taxes in Maryland
Every state-level tax in Maryland, in one place—income, sales, property, corporate, estate, transfer, and excise taxes. Figures sourced from the IRS, U.S. Census Bureau, and Tax Foundation.
Maryland stands alone as the only state that taxes an estate twice — through both an estate tax and an inheritance tax. Estates above $5,000,000 face a top rate of 16%, so heirs can owe the state on top of whatever the federal government collects. That double layer matters most to families with significant assets or those planning to pass a business or property down. The cigarette tax gives a second signal about how Maryland raises revenue: at 3rd of 51, it is among the nation's steepest. Relocators weighing the cost of living should factor in a state willing to tax both what you leave behind and what you consume.
State income tax
6.50% 8 brackets · graduated.
Local income tax: Baltimore levies an income tax of 3.2%. See all local income taxes.
Sales tax
The combined state + local sales tax rate is 6.00%. State rate 6.00% plus an average 0.00% local.
Estate & inheritance tax
Maryland taxes estates over $5,000,000 at a top rate of 16%. An inheritance tax also applies.
Real estate transfer tax
Maryland levies a transfer tax of 0.500% — State transfer tax; counties add 0.5–1.5%.
Cigarette Tax
Maryland levies a cigarette tax of $5.00 per pack of 20. Federal excise adds $1.01 per pack.
Gas Tax
Maryland levies a gas tax of 46.81¢ per gallon. Federal excise adds 18.4¢ per gallon. Excludes local taxes and environmental/carbon-related costs.
Beer Tax
Maryland levies a beer tax of $0.600 per gallon. Federal excise adds $0.113–$0.581 per gallon depending on brewery size.
Wine Tax
Maryland levies a wine tax of $1.640 per gallon. Federal excise adds $1.07 per gallon (11% still wine). MS, NH, PA, UT, WY are control states with no published excise rate.
Spirits Tax
Maryland levies a spirits tax of $5.460 per gallon. Federal excise adds $5.40 per gallon (40% ABV). NH and WY are control states with an effective $0.00 rate.
Property tax by county
The state's median county effective property tax rate is 0.90%. Compare counties below for local rates.
Counties in Maryland by property tax rate
| County | Effective rate | Median home value |
|---|---|---|
| Baltimore city | 1.46% | $229,600 |
| Howard County | 1.17% | $597,900 |
| Prince George's County | 1.12% | $426,000 |
| Baltimore County | 1.07% | $349,300 |
| Allegany County | 1.06% | $154,900 |
| Charles County | 1.01% | $428,500 |
| Frederick County | 0.99% | $464,600 |
| Dorchester County | 0.94% | $262,400 |
| Somerset County | 0.92% | $173,200 |
| Kent County | 0.91% | $330,900 |
| Carroll County | 0.91% | $434,000 |
| Caroline County | 0.90% | $290,100 |
| Cecil County | 0.89% | $343,400 |
| Harford County | 0.89% | $386,400 |
| Montgomery County | 0.86% | $640,300 |
| Wicomico County | 0.85% | $254,700 |
| Anne Arundel County | 0.85% | $467,900 |
| Calvert County | 0.84% | $460,200 |
| St. Mary's County | 0.84% | $407,600 |
| Washington County | 0.84% | $296,100 |
| Queen Anne's County | 0.78% | $462,700 |
| Garrett County | 0.78% | $235,300 |
| Worcester County | 0.73% | $374,700 |
| Talbot County | 0.65% | $409,700 |