Tax Attorneys in Maryland

Maryland has a progressive income tax ranging from 2% to 5.75%, plus local county income taxes between 2.25% and 3.20%. The state’s sales and use tax rate is 6%, with no local sales taxes, and groceries and prescription drugs are exempt. Property taxes vary by county, with state and local relief programs available. The office of the comptroller of Maryland is responsible for the collection, enforcement and compliance of the state’s tax laws.

Corporate income tax is 8.25%, higher than the national average. Maryland is one of the few states with both an estate tax (on estates over $5 million) and an inheritance tax (up to 10%). The state’s tax burden is relatively high due to income, property, and business taxes.

Maryland has a progressive state income tax system, with rates ranging from 2% to 5.75%, depending on income level. In addition to the state tax, Maryland counties and Baltimore City impose local income taxes, ranging from 2.25% to 3.20%, making Maryland one of the few states with both state and local income taxation. For a breakdown of Maryland’s income tax rate brackets and local income tax rates, kindly click here.

Additionally, residents must also pay federal income tax. Certain income sources, such as Social Security benefits, are exempt from state tax, while pensions and retirement distributions may qualify for partial exemptions. Maryland’s income tax structure results in higher effective tax rates for many residents compared to other states.

1. Social Security Benefits: Maryland does not tax Social Security income, providing relief for retirees.
2. Certain Retirement Income: Eligible residents can deduct a portion of pension, 401(k), and IRA distributions through the Pension Exclusion program.
3. Military Retirement Pay: Qualified military retirees may be eligible for deductions on their retirement benefits.
4. Municipal Bond Interest: Interest earned from Maryland state and local municipal bonds is exempt from state income tax.
5. Inheritance for Certain Beneficiaries: From July 1, 2000, Immediate family members (spouses, children, parents, and siblings) do not pay inheritance tax, though other beneficiaries may be taxed.

While Maryland has a progressive income tax system, these exemptions help reduce tax burdens for eligible taxpayers.

Yes, Maryland offers several tax exemptions, deductions, and credits, including:

1. First-Time Homebuyer Savings Account: First time home buyers are eligible to deduct up to $5,000 per year for eligible savings.
2. Military Retirement Income Exemption: Up to $12,500 of military retirement income is tax-exempt for taxpayers under 55, and up to $20,000 is exempt for those 55 and older
3. Preservation and Conservation Easement Credit – Tax benefits for donating land for conservation.
4. Heritage Structure Rehabilitation Credit: This credit is available for expenses related to rehabilitating a certified heritage structure, including both residential and income-producing properties
5. Quality Teacher Incentive Credit: Qualified teachers can receive a tax credit for tuition paid for graduate-level courses required to maintain their certification​
6. Inheritance Tax Exemptions – No tax on property passing to close relatives or domestic partners.

1. State Income Tax: Maryland’s income tax rates range from 2% to 5.75%, based on income brackets, with additional local income taxes imposed by counties and Baltimore City. You can file your state income tax using:
   • Maryland iFile: A free online filing system provided by the Comptroller of Maryland.
   • Approved E-File Providers: A list of authorized e-file providers is available on the comptroller of Maryland’s website.
2. Federal Income Tax Filing: You can file your federal income tax in Maryland using –
   • IRS Direct File: As of the 2025 tax season, eligible Maryland residents can use the IRS Direct File service to prepare and file their federal tax returns online directly with the IRS for free
   • Use IRS Form 1040 for personal federal taxes.
   • File online through the IRS Free File, tax software, or with a tax professional.
3. Property Tax: Managed at the county level, with rates and assessments varying by jurisdiction.

Maryland tax lawyer fees depend on case complexity, whether it’s IRS disputes, tax controversy, estate tax planning, or small business tax issues. Rates can be fixed or hourly.

At Taxlawyer.com, we help Maryland residents connect with top-rated Maryland IRS tax attorneys who provide cost-effective and excellent legal representation.

Tax disputes in Maryland whether related to IRS audits, payroll taxes, or estate tax planning require an experienced Maryland tax attorney. Here’s how to hire one:

• Determine your tax problem – Federal tax disputes, Maryland state tax matters, or business taxation.
• Verify expertise and licensing – Look for attorneys specializing in tax controversy or planning.
•  Schedule a consultation – Review possible legal strategies and compliance solutions.
• Clarify fee structures – Understand if the lawyer charges hourly, a retainer, or contingency-based fees.

At TaxLawyer.com, we help Maryland taxpayers connect with highly qualified Maryland tax lawyers.

Maryland’s tax system includes state income tax, sales tax, and property tax, as well as specific inheritance and estate tax provisions.

1. Income Tax – Maryland has a progressive state income tax ranging from 2% to 5.75%, with local surtaxes between 2.25% and 3.2%​
2. Sales Tax – The general state sales tax rate is 6%, without additional local taxes​. However, most food sold at grocery stores or markets is not subject to sales tax at all. Prepared food such as ice cream or sandwiches served in a restaurant are taxed at the 6% rate.
3. Property Tax – Real property taxes are administered locally, with no state-level property tax​ making its effective property tax rate on owner-occupied housing value 0.95%.
4. Inheritance & Estate Taxes – Maryland imposes a 10% inheritance tax on non-exempt beneficiaries. The estate tax applies to estates over $5 million, with rates up to 16%​
5. Fuel & Tobacco Tax: Maryland has a 47.2 cents per gallon gas tax rate and a $3.75 cigarette excise tax rate.
6. Alcohol Tax: There is a tax of $0.60 per gallon of beer and $5.46 per gallon of liquor.
7. Tax Exemptions & Credits – Maryland offers exemptions and credits, including for retirement income, first-time homebuyers, conservation easements, and heritage property rehabilitation