Filing in Maryland? Don’t Ignore These Money-Saving Credits and Deductions

Every year, thousands of Maryland taxpayers miss out on tax credits and deductions they’re entitled to — money that could stay in their pockets. 

To make sure you don’t fall into that trap, understanding how Maryland state income taxes work is the first step to making sure you claim everything you qualify for, from the standard or itemized deductions to the Earned Income Tax Credit (EITC).

This guide will walk you through what you need to know to prepare your Maryland state taxes and claim all the credits you’re entitled to. 

*Note that you are still responsible for federal taxes if you meet the IRS income filing threshold. This article addresses state-specific taxes only.

Maryland state income tax rates

Maryland’s state income tax rates range from 2% to 6.50% for the 2025 tax year (the taxes you file in 2026), based on how much you earn and your filing status. Generally, the more you earn, the higher your tax rate.

Exactly how much you pay in state income taxes also depends on where you live. Maryland has 23 counties and Baltimore City, each with local taxes that add to your state bill.Maryland has a progressive income tax system, which means the more you earn, the higher your tax rate. For the 2025 tax year (filed in 2026), rates range from 2% to 6.50%.

State income taxes are due by April 15, aligning with federal deadlines. 

In the tax bracket tables below, you’ll find the Maryland tax rates by filing status, helping you determine where your income fits within the state’s brackets.

Single or married filing separately

Here’s the Maryland state tax breakdown for taxpayers filing as Single or Married Filing Separately in the 2024 tax year.  

Taxable net income	Maryland tax
$0 to $1,000	2%
$1,001 to $2,000	$20 plus 3% of the excess over $1,000
$2,001 to $3,000	$50 plus 4% of the excess over $2,000
$3,001 to $100,000	$90 plus 4.75% of the excess over $3,000
$100,001 to $125,000	$4,697.50 plus 5% of the excess over $100,000
$125,001 to $150,000	$5,947.50 plus 5.25% of the excess over $125,000
$150,001 to $250,000	$7,260.00 plus 5.5% of the excess over $150,000
$250,001 to $500,000	$12,760.00 plus 5.75% of the excess over $250,000
$500,001-$1,000,000	$27,135.00 plus 6.25% of the excess over $500,000 (NEW!)
Over $1,00,000	$58,385.00 plus 6.50% of the excess over $1,000,000 (NEW!)

Married filing jointly or head of household

Here’s the Maryland state tax breakdown for married taxpayers filing jointly or as head of household for the 2024 tax year.  

Taxable net income	Maryland tax
$0 to $1,000	2%
$1,001 to $2,000	$20 plus 3% of the excess over $1,000
$2,001 to $3,000	$50 plus 4% of the excess over $2,000
$3,001 to $150,000	$90 plus 4.75% of the excess over $3,000
$150,001 to $175,000	$7,072.50 plus 5% of the excess over $150,000
$175,001 to $225,000	$8,322.50 plus 5.25% of the excess over $175,000
$225,001 to $300,000	$10,947.50 plus 5.5% of the excess over $225,000
$300,001-$600,000	$15,072.50 plus 5.75% of the excess over $300,000
$600,001-$1,200,000	$32,322.50 + 6.25% of the excess over $600,000 (NEW!)
Over $1,200,001	$69,822.50 + 6.50% of the excess over $1,200,000 (NEW!)

Source: Comptroller of Maryland

What is the standard deduction in Maryland?

The standard deduction reduces the income you’re taxed on, resulting in a lower overall tax bill. In Maryland, taxpayers are entitled to the standard deduction if the amount is higher than their itemized deductions. Standard deductions simplify tax filing by enabling you to deduct a fixed amount instead of listing each individual expense separately.

The 2025 standard deduction limits in Maryland are: 

• Single, married filing separately, or dependent taxpayers: $3,350
• Head of household, qualifying surviving spouse, and married filing jointly: $6,700

Who has to file Maryland state income tax?

You’ll generally need to file a Maryland income tax return if: 

• You are or were a Maryland resident. 
• You’re required to file a federal income tax return. 
• Your Maryland gross income meets or exceeds the threshold for your filing status. 

Nonresidents may also need to file taxes if they earn income in Maryland and are required to file a federal return.Here are the filing threshold requirements for the 2025 tax season:
 

Filing status	Gross income (you pay state income tax if you make these amounts or more)
Single (including dependent taxpayers)
Under 65	$14,600
65 or older	$16,550
Head of Household
Under 65	$21,900
65 or older	$23,850
Married Filing Jointly
Both under 65	$29,200
One spouse 65 or older	$30,750
Both 65 or older	$32,300
Married Filing Separately
If your spouse uses the standard deduction	$14,600
If your spouse itemizes	$5
Qualifying Surviving Spouse
Under 65	$29,200
65 or older	$30,750

How Maryland residency impacts tax filing

Maryland taxes you based on whether you’re a full-year resident, part-year resident, or nonresident, which affects how much of your income is taxed: 

Residency status	Definition	How Maryland taxes income
Resident	Your permanent home (domicile) is in Maryland, or you maintain a residence in the state for over six months and are physically present in the state for at least 183 days.	Maryland taxes all income earned during the tax year.
Part-year resident	You moved into or out of Maryland and changed your residency status during the tax year.	Maryland taxes income earned while you were a resident and any Maryland-sourced income earned as a nonresident.
Nonresident	Your permanent home is in another state, and you do not meet the criteria for being a Maryland resident.	Maryland only taxes income earned from Maryland sources.
Statutory resident	You maintain and live in a residence in Maryland for more than six months of the tax year, even if your permanent home is elsewhere.	Maryland taxes all income earned during the tax year.

What if you live in Maryland but work in another state?

If you live in Maryland but work in D.C., Pennsylvania, Virginia, or West Virginia, you generally do not have to file a nonresident return in your work state, unless the wrong state tax was withheld from your paycheck. This type of agreement is called a reciprocal tax agreement and lets workers request exemption from state tax withholding in their work state so they do not have to file multiple state returns.

Common Maryland state tax deductions and credits

Maryland offers a variety of tax credits that can help reduce the taxes you owe and keep more money in your pocket. These credits apply to various financial situations, from charitable contributions to dependent care.  

Here are some of the most common tax credits available to Maryland taxpayers:

Tax credit	Description	Amount
Earned Income Tax Credit (EITC)	For low- to moderate-income working individuals and families.	Up to 50% of the federal EITC, where the federal credit is up to $8,046 for the 2025 tax year.
Clean Energy Tax Incentives	For purchasing qualifying clean energy systems or vehicles.	Varies. For example, you may get up to $3,000 for buying a plug-in or fuel cell vehicle.
Senior Tax Credit	For senior citizens meeting specific income and age criteria.	Varies based on income and age. For example, if you’re single and 65 or older with a gross income under $100,000, you can get a $1,000 tax credit. Joint filers are eligible for $1,750 if both spouses are over 65 and gross income doesn’t exceed $150,000.
First-Time Homebuyer Savings Account	For individuals saving to purchase their first home in Maryland.	Up to $5,000 ($10,000 if filing jointly) per year (not to exceed 10 years), with a lifetime maximum of $50,000.
Heritage Revitalization Tax Credit	For rehabilitating certified historic structures.	20% of qualified rehabilitation expenditures with a cap of $50,000 in a 24-month period. There is a minimum of $5,000 of eligible expenses within a 24-month period required to qualify.
Quality Teacher Incentive Credit	For teachers incurring tuition expenses for required graduate-level courses.	Up to $1,500 per year.
Child and Dependent Care Tax Credit	For expenses incurred for the care of dependents to enable employment.	Starting at 32% of the federal credit, but subject to income limitations. The federal credit is capped at $6,000.
Student Loan Debt Relief Tax Credit	For Maryland residents who have incurred at least $20,000 in undergraduate and/or graduate student loan debt and have at least $5,000 in outstanding student loan debt.	Subject to funding availability. For tax year 2025, $9 million is the funding cap (down from prior years.)
Independent Living Tax Credit	For home modifications to assist aging or disabled individuals.	50% of eligible expenses, up to $5,000.

It is also important to note that certain income types — like retirement, capital gains, inheritance, or military pay — have special rules, so it’s worth making sure you know what they mean for your situation.

More information can be found at the Comptroller of Maryland website. 

How to file Maryland state income tax

You don’t have to learn about all the state’s tax laws or specific forms on your own. Whether you’d rather handle your taxes yourself orget help from a pro, TurboTax is here to make filing easier and make sure you claim every credit you qualify for.Want personalized support? Connect with a local tax expert in Maryland for tailored advice or even let us file your taxes for you.