Does Maryland tax Social Security benefits?

No. Taxpayers affected by the federal tax on Social Security and/or Railroad Retirement benefits can continue to exempt those benefits from state tax. Maryland tax law exempts from state tax only those Railroad Retirement benefits provided under the U.S. Railroad Retirement Act. Enter on line 12 of Maryland Form 502 all Railroad Retirement benefits and/or Social Security benefits that were taxable on your federal return and included on line 1 of Maryland Form 502.