Income Tax Information

For tax year 2007, the Maryland income tax rate is set at 4.75 percent and it applies to the taxable income of residents and nonresidents who derive income from a Maryland source. Nonresidents are subject to a special nonresident tax rate of 1.25 percent, in addition to the 4.75 percent rate, for an effective tax rate of 6 percent.

Maryland's 23 counties and Baltimore City also levy a local income tax, which is collected on the resident state tax return as a convenience to local governments.

There are special tax benefits available to taxpayers 65 and older, military retirees, U.S. government employees who work overseas and low income families. You can also choose among several methods to file and pay your Maryland taxes electronically. The deadline for filing your Maryland income tax is April 15, 2008 if you are filing on a calendar year basis. If any due date falls on a Saturday, Sunday or legal holiday, the return must be filed by the next business day. You may also request a filing extension.