Income Tax Brackets

Maryland Income Tax Brackets 2019

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Tax Year 2019 Maryland Income Tax Brackets (TY 2019 – 2020)

Maryland – Single Tax Brackets

Tax Bracket Tax Rate
$0.00+2%
$1,000.00+3%
$2,000.00+ 4%
$3,000.00+ 4.75%
$100,000.00+ 5%
$125,000.00+ 5.25%
$150,000.00+ 5.5%
$250,000.00+ 5.75%

Maryland – Married Filing Jointly Tax Brackets

Tax BracketTax Rate
$0.00+ 2%
$1,000.00+ 3%
$2,000.00+ 4%
$3,000.00+ 4.75%
$150,000.00+ 5%
$175,000.00+ 5.25%
$225,000.00+ 5.5%
$300,000.00+ 5.75%

Tax brackets and tax rates are ever-changing as the cost of living increases over time. Maryland is no exception to the rule, as its tax brackets were previously updated back in 2015, while the tax rates witnessed an even earlier update in 2014. These rates are no constants though, as they are bound to inflate and are modified on a yearly basis to, as mentioned above, reflect the modifications that the cost of living is witnessing over time.

Understanding Maryland Tax Bracket

In Maryland, taxation is governed by eight marginal tax brackets, for which the marginal rates include 2%, 3%, 4%, 4.75%, 5%, 5.25%, 5.50%, and 5.75%.  Each of these marginal rates is only applicable to earnings within the corresponding tax bracket.

Furthermore, tax brackets depend on the filing type, which means that married couples, for example, who file their income tax return jointly, will generally have broader tax brackets compared to those filing their tax return individually.

Understanding tax brackets may seem tricky, but it’s quite simple: you need to pay every Maryland marginal tax rate starting from the lowest bracket to the highest tax bracket in which your last buck was earned. You don’t have one “tax bracket,” you have as many as your earnings go. Although for comparison sake, your Maryland tax bracket is defined as the tax bracket in which you earned your last dollar in any tax period.

Understanding Maryland Bracketed Income

Simply put, bracketed income tax is a flat amount that you have to pay for all your earnings to the highest bracket, along with a marginal percentage of any earnings that exceed the highest bracket. All of that is broken down in the chart below:

Single Tax Brackets

For earnings between $0.00 and $1,000.00, you’ll pay 2%
For earnings between $1,000.00 and $2,000.00, you’ll pay 3% plus $20.00
For earnings between $2,000.00 and $3,000.00, you’ll pay 4% plus $50.00
For earnings between $3,000.00 and $100,000.00, you’ll pay 4.75% plus $90.00
For earnings between $100,000.00 and $125,000.00, you’ll pay 5% plus $4,697.50
For earnings between $125,000.00 and $150,000.00, you’ll pay 5.25% plus $5,947.50
For earnings between $150,000.00 and $250,000.00, you’ll pay 5.5% plus $7,260.00
For earnings over $250,000.00, you’ll pay 5.75% plus $12,760.00

Married Filing Jointly Tax Brackets

For earnings between $0.00 and $1,000.00, you’ll pay 2%
For earnings between $1,000.00 and $2,000.00, you’ll pay 3% plus $20.00
For earnings between $2,000.00 and $3,000.00, you’ll pay 4% plus $50.00
For earnings between $3,000.00 and $150,000.00, you’ll pay 4.75% plus $90.00
For earnings between $150,000.00 and $175,000.00, you’ll pay 5% plus $7,072.50
For earnings between $175,000.00 and $225,000.00, you’ll pay 5.25% plus $8,322.50
For earnings between $225,000.00 and $300,000.00, you’ll pay 5.5% plus $10,947.50
For earnings over $300,000.00, you’ll pay 5.75% plus $15,072.50

Maryland Tax Deductions

Another essential feature of the Maryland income tax that you need to understand is deductions, mainly the Maryland Standard Deduction, the Maryland Personal Exemption, and the Maryland Dependent Deduction. These deductions are the most commonly encountered by taxpayers in this state, and their values for the tax year 2016 are the following:

Standard Deduction (S)Standard Deduction (M)Personal ExemptionDependent Exemption
$2000.00$4000.00$3200.00$3200.00

Breakdown of Maryland Tax Deductions

Maryland Standard Deduction: This is the default deduction available to every taxpayer should they fail to file an itemized deduction. The values of this deduction are:

  • $2,000.00 of tax-free income per year for single taxpayers.
  • $4,000.00 of tax-free income per year for taxpayers filing jointly.

Maryland Personal Exemption: This deduction is supported by the Maryland income tax, and it is available for every taxpayer responsible for their own living expenses.

Maryland Dependent Deduction: In addition to the Maryland Personal Exemption, for each qualifying dependent under your wing, such as a child or a family member, for whom you support the living expenses, you can get an additional dependent exemption. These deductions aren’t specific to Maryland, as the Federal Income Tax also has a standard deduction, personal exemptions, and dependent deductions, which are applicable in all states nationwide. Keep in mind that their amounts and rules may differ from those of Maryland.

2018 Maryland Income Tax Filing Deadlines

DeadlineType of FilingDescription
July 15, 2020Tax Return Maryland State Income Tax Return Due Date.
July 15, 2020
Tax Extension
Maryland Automatic Extension. 
October 15, 2020
Tax Return
Last day to efile a 2018 Maryland State Income Tax Return for tax extension filers and late efilers.

 

Disclaimer: 

While we do our best to keep this list of Maryland income tax rates up to date and complete, we cannot be held liable for errors or omissions. Is info on this page missing or out-of-date? Please let us know so we can fix it!

Update:

Our Maryland tax brackets are currently from the tax year 2019 (filed in July 2020). Many states adjust their tax brackets yearly, and we will update the State Name tax brackets for 2021 as soon as they become available.

 

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