Find Local Maryland Tax Relief Experts

Maryland has a graduated individual income tax from 2% to 5.75%, plus a local income tax set by each of Maryland's 23 counties and Baltimore City, ranging from 2.25% to 3.2%. Combined state-local income tax rates in Maryland reach up to 8.95% for the highest earners, among the highest effective rates in the Mid-Atlantic region. The state sales tax is 6% with no local additions; Maryland recently extended the sales tax to certain digital products and streaming services, expanding the tax base for businesses selling online content. Payroll taxes require Maryland employers to withhold both state and county income taxes and file MW506 quarterly; employers who fail to remit withheld taxes face trust fund liability personally for any responsible officer or owner. Corporate income tax in Maryland is 8.25% on Maryland net income, one of the higher rates in the Southeast; the state also imposes an annual personal property tax on business equipment and inventory. Back tax debt in Maryland compounds at 13% annual interest on unpaid balances; the Comptroller's Office can garnish wages, intercept state tax refunds, and place liens on property. Federal government contractors, defense industry employees, and IT professionals in the DC-Maryland corridor frequently have complex multi-state sourcing issues that lead to unreported Maryland income. Maryland offers installment agreements, penalty waivers for first-time filers, and a formal offer in compromise program for financial hardship cases.