October 17, 2018

Maryland: Who Pays? 6th Edition


MARYLAND

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MARYLAND STATE AND LOCAL TAXES

Taxes as Share of Family Income

Top 20%
Income Group Lowest
20%		 Second
20%		 Middle
20%		 Fourth
20%		 Next
15%		 Next
4%		 Top
1%
Income Range Less than
$24,100		 $24,100 to
$43,600		 $43,600 to
$65,900		 $65,900 to
$120,100		 $120,100 to
$238,800		 $238,800 to
$534,800		 over
$534,800
Average Income $12,500 $33,200 $54,200 $89,600 $166,500 $340,800 $1,448,000
Sales & Excise Taxes 5.9% 4.5% 3.5% 2.8% 2.0% 1.3% 0.7%
General Sales – Individuals 2.4% 2.0% 1.7% 1.5% 1.1% 0.7% 0.4%
Other Sales & Excise – Ind. 1.7% 1.1% 0.8% 0.6% 0.4% 0.2% 0.1%
Sales & Excise on Business 1.8% 1.4% 1.0% 0.8% 0.6% 0.4% 0.2%
Property Taxes 3.4% 2.1% 2.8% 2.8% 2.7% 2.3% 1.6%
Home, Rent, Car – Ind. 3.3% 2.1% 2.7% 2.7% 2.5% 2.0% 0.5%
Other Property Taxes 0.1% 0.1% 0.1% 0.1% 0.1% 0.3% 1.1%
Income Taxes 0.5% 2.8% 4.3% 5.4% 5.9% 6.1% 6.7%
Personal Income Tax 0.5% 2.8% 4.3% 5.4% 5.8% 6.0% 6.5%
Corporate Income Tax 0.0% 0.0% 0.0% 0.0% 0.1% 0.1% 0.2%
TOTAL TAXES 9.8% 9.5% 10.6% 11.0% 10.6% 9.7% 9.0%

Individual figures may not sum to totals due to rounding. Download the table

TAX FEATURES DRIVING THE DATA in Maryland

Progressive Features

Regressive Features
  • Graduated personal income tax structure
  • Provides a refundable Earned Income Tax Credit (EITC) (28 percent refundable/50 percent non-refundable)
  • Provides a refundable property tax “circuit breaker” credit via the personal income tax
  • Sales tax base excludes groceries
  • Levies a state estate tax and county inheritance tax
  • Fails to use combined reporting as part of its corporate income tax

ITEP Tax Inequality Index

According to ITEP’s Tax Inequality Index, which measures the impact of each state’s tax system on income inequality, Maryland has the 42nd most unfair state and local tax system in the country. Incomes are more unequal in Maryland after state and local taxes are collected than before. (See Appendix B for state-by-state rankings and the methodology section for additional detail on the index.)

Note: Figures show permanent law in Maryland enacted through September 10, 2018, at 2015 income levels. Top figure represents total state and local taxes as a share of non-elderly income. The sixth edition of Who Pays does not include the impact of the federal deduction for state and local taxes (SALT) because policy changes in the 2017 federal Tax Cuts and Jobs Act temporarily limited the extent to which the SALT deduction functions as a generalized offset of state and local taxes.