Maryland: Who Pays? 7th Edition
Maryland
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All figures and charts show 2024 tax law in Maryland, presented at 2023 income levels. Senior taxpayers are excluded for reasons detailed in the methodology. Our analysis includes nearly all (99.2 percent) state and local tax revenue collected in Maryland.
State and local tax shares 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 $29,700 | $29,700 to $58,900 | $58,900 to $101,400 | $101,400 to $151,700 | $151,700 to $333,300 | $333,300 to $700,300 | Over $700,300 |
| Average Income in Group | $15,400 | $43,200 | $78,200 | $129,700 | $217,800 | $456,100 | $1,254,300 |
| Sales & Excise Taxes | 6.3% | 4.4% | 3.5% | 2.8% | 2.2% | 1.4% | 0.9% |
| General Sales–Individuals | 2.4% | 2% | 1.7% | 1.4% | 1% | 0.7% | 0.3% |
| Other Sales & Excise–Ind | 3% | 1.7% | 1.2% | 0.9% | 0.6% | 0.4% | 0.2% |
| Sales & Excise–Business | 0.8% | 0.7% | 0.6% | 0.6% | 0.5% | 0.4% | 0.4% |
| Property Taxes | 3.7% | 2.3% | 2.5% | 3% | 2.7% | 2.2% | 1.7% |
| Home, Rent, Car–Individuals | 3.3% | 2% | 2.2% | 2.7% | 2.4% | 1.7% | 0.8% |
| Other Property Taxes | 0.4% | 0.3% | 0.3% | 0.3% | 0.4% | 0.4% | 1% |
| Income Taxes | -0.5% | 2.8% | 5.1% | 6.1% | 5.9% | 5.9% | 6.4% |
| Personal Income Taxes | -0.6% | 2.8% | 5.1% | 6% | 5.8% | 5.9% | 6.3% |
| Corporate Income Taxes | 0% | 0% | 0% | 0% | 0% | 0% | 0.1% |
| Other Taxes | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% |
| TOTAL TAXES | 9.6% | 9.7% | 11.2% | 12% | 10.8% | 9.6% | 9% |
| Individual figures may not sum to totals due to rounding. | |||||||
ITEP Tax Inequality Index
Maryland has a hybrid system that is progressive through the middle part of the income distribution and regressive through the bottom and top parts. On balance, the overall system tilts regressive because high-income families pay the lowest overall tax rates. According to ITEP’s Tax Inequality Index, Maryland has the 41st most regressive state and local tax system in the country. Income disparities between high-income taxpayers and other families are larger in Maryland after state and local taxes are collected than before. (See Appendix B for state-by-state rankings and the report methodology for additional detail.)
Tax features driving the data in Maryland
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Refundable property tax “circuit breaker” credit (all ages, includes renters)
Levies a state estate tax and county inheritance tax
Partially refundable dependent care tax credit
Refundable Earned Income Tax Credit (EITC)
Limited, refundable Child Tax Credit (CTC)
Graduated personal income tax structure
Sales tax base excludes groceries
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Real estate transfer tax does not include higher rate on high-value sales
Does not use combined reporting as part of its corporate income tax
Offers itemized deductions
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