1. What is Maryland State Income Tax?

Maryland state income tax is a tax imposed by the state of Maryland on personal income. The tax rates are progressive, meaning they increase as taxable income increases.

2. How Does the Calculator Work?

The calculator uses the Maryland tax formula:

Where:

• \( Taxable\ Income \) — Your total income after deductions and exemptions
• \( Maryland\ Tax\ Rate \) — The applicable tax rate percentage based on your income bracket

Explanation: The calculation multiplies your taxable income by the tax rate percentage to determine your Maryland state income tax liability.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps with financial planning, ensures proper withholding, and helps avoid underpayment penalties or large unexpected tax bills.

4. Using the Calculator

Tips: Enter your taxable income in dollars and the applicable Maryland tax rate percentage. All values must be valid (income > 0, rate between 0-100).

5. Frequently Asked Questions (FAQ)

Q1: What are Maryland's tax brackets?
A: Maryland has progressive tax rates ranging from 2% to 5.75% as of 2023, with different brackets for single filers and married couples filing jointly.

Q2: Are there local taxes in Maryland?
A: Yes, Maryland counties and Baltimore City impose local income taxes at rates ranging from 1.75% to 3.2%.

Q3: What deductions are available?
A: Maryland offers standard deductions, itemized deductions, and special exemptions for certain groups like military retirees.

Q4: When are Maryland taxes due?
A: Maryland state taxes are typically due April 15, the same as federal taxes, unless that date falls on a weekend or holiday.

Q5: How does Maryland tax retirement income?
A: Maryland offers some retirement income exclusions, particularly for military and federal retirees.