Maryland local taxes by county come in two main forms: a local income tax that every county and Baltimore City must impose at a rate between 2.25% and 3.20% of Maryland taxable income, and a local property tax that currently runs from roughly $0.80 to $2.248 per $100 of assessed value depending on where the property sits. Maryland does not allow counties to add their own general sales tax, so the 6% state sales tax is the same everywhere. What you actually owe turns almost entirely on your home address.
Local Income Tax Rates by County
State law requires all 23 counties and Baltimore City to impose a local income tax, with each jurisdiction’s rate falling between a statutory floor of 2.25% and a ceiling of 3.20% of Maryland taxable income.1Maryland General Assembly. Maryland Tax – General Code Section 10-106 – County Income Tax Rate Two people with identical salaries can owe meaningfully different Maryland tax bills based solely on which county they live in.
At the most recent published rates, Allegany County sits at the statutory minimum of 2.25%, while several counties including Garrett and Worcester tax at the full 3.20%.2Maryland Comptroller’s Office. 2025 Maryland State and Local Income Tax Withholding Information Everyone else lands somewhere in between.
Local legislative bodies can adjust their rate each year within the statutory range, and any increase takes effect on January 1. A county that wants to raise its rate above 2.6% has to hold a public hearing first and publish notice of that hearing in a local newspaper for two consecutive weeks.1Maryland General Assembly. Maryland Tax – General Code Section 10-106 – County Income Tax Rate Howard County operates under a stricter rule: its rate can be changed only by ordinance, not by resolution.
Since 2022, counties have had the option of charging a graduated local income tax rather than a single flat rate. A county using brackets can set different rates for different income levels, as long as no bracket dips below 2.25% or above 3.20%.1Maryland General Assembly. Maryland Tax – General Code Section 10-106 – County Income Tax Rate Frederick and Howard counties, among others, have adopted graduated structures.
Who Owes the Local Income Tax
If you’re domiciled in Maryland on the last day of the tax year, you owe local income tax to the county or city where you live. You can also qualify as a resident without being domiciled here. Maryland treats you as a statutory resident if you both maintain a place of abode in the state for more than six months of the year and are physically present in Maryland for 183 days or more during that same year.3Comptroller of Maryland. Administrative Release No. 37 – Maryland Income Tax – Domicile and Residency Renting an apartment here for seven months while spending most of your time elsewhere won’t trigger statutory residency on its own; both conditions have to be met.
When domicile is disputed, the Comptroller’s office looks at concrete ties: where you’re registered to vote, where your vehicles are titled, where your children attend school, and where you maintain bank accounts.
If you live in another state but earn income in Maryland, you don’t pay a county income tax. Instead, non-residents pay a special state tax under Tax-General § 10-106.1 at a rate equal to the lowest county income tax rate in effect that year, currently 2.25%.4Maryland General Assembly. Maryland Tax – General Code Section 10-106.1 – Individuals Subject to State Tax but Not County Tax That non-resident rate is baked into the 7.0% total withholding Maryland employers apply to non-resident paychecks.2Maryland Comptroller’s Office. 2025 Maryland State and Local Income Tax Withholding Information
Part-year residents use the local rate of the county where they lived on the last day of their Maryland residency, with deductions and credits prorated by a Maryland income factor.5Comptroller of Maryland. 2025 Resident Instruction Booklet Active-duty service members who are legal Maryland residents owe local income tax on their military pay no matter where they’re stationed. Service members who are legal residents of another state but stationed in Maryland don’t owe tax on their military pay here, though non-military income earned in the state is still reportable.6Comptroller of Maryland. Filing Facts for Military Personnel and Their Families
Local Property Tax Rates by County
Property tax in Maryland comes from up to three sources: the state, the county, and sometimes a municipality. The state portion is small — $0.112 per $100 of assessed value. Local rates do the real work.
For fiscal year 2026, county property tax rates range from about $0.80 per $100 in Talbot County to $2.248 per $100 in Baltimore City.7Maryland Department of Legislative Services. 2026 County Local Tax Rates Municipalities can layer an additional rate on top of the county rate, so a property inside a town’s limits may carry a higher combined bill than one in the unincorporated part of the same county.
Property values are set by the State Department of Assessments and Taxation (SDAT), which reappraises every property account once every three years using market sales data, construction cost analysis, and income approaches where applicable.8Maryland Department of Assessments and Taxation. Real Property Local governments then apply their rate to the assessed value SDAT certifies.
Homestead Caps on Owner-Occupied Homes
If you own and occupy your home, the Homestead Tax Credit caps how much your taxable assessment can rise in a single year. State law sets the maximum cap at 10%, and each county sets its own cap at or below that ceiling. For the July 1, 2026 tax year, caps ranged from 0% in Talbot and Worcester counties to 10% in Calvert, Montgomery, and Somerset counties, with most jurisdictions landing between 2% and 5%.9Maryland Department of Assessments and Taxation. January 1, 2026 Press Release and Report County governments have until March 15 to adjust their cap for the upcoming year. The credit applies automatically once you’ve filed a one-time application with SDAT.
Homeowners’ Property Tax Credit
Separately, Maryland limits qualifying homeowners’ property tax to a fixed percentage of household income. To qualify, your combined gross household income must be no more than $60,000 and your net worth, excluding your home, IRAs, and qualified retirement plans, must be under $200,000.10Maryland Department of Assessments and Taxation. Homeowners’ Property Tax Credit Program The home has to be your principal residence for more than six months of the year.
The credit uses a sliding scale: no tax on the first $8,000 of household income, 4% of the next $4,000, 6.5% of the next $4,000, and 9% of everything above $16,000. If your actual bill exceeds the figure that formula produces, the difference is your credit.10Maryland Department of Assessments and Taxation. Homeowners’ Property Tax Credit Program The application deadline is October 1, but filing a complete application by April 15 gives you the best chance of seeing it reflected on your July 1 bill.11Maryland State Department of Assessments and Taxation. Homeowners’ Property Tax Credit Application HTC-1 Form
Appealing Your Property Assessment
If you believe SDAT overvalued your property, you have 45 days from the date on your assessment notice to file an appeal.12Maryland Department of Assessments and Taxation. Assessment Appeal Process The deadline is firm. Miss it, and you’ll wait for the next triennial reassessment to try again.
Maryland uses a three-level appeal system:
- Supervisor’s level. An informal hearing with an assessor in your local office, where most appeals are resolved. Most homeowners handle it without professional help.
- Property Tax Assessment Appeal Board (PTAAB). If the supervisor’s decision doesn’t go your way, you have 30 days to appeal to the PTAAB. Each of the 24 jurisdictions has its own board of local residents appointed by the Governor. No filing fees, and you can introduce new evidence.
- Maryland Tax Court. Filed within 30 days of the PTAAB order. The Tax Court reviews the case de novo, starting fresh without relying on the earlier records.
You can file the initial appeal online using the control number on your notice or by returning the paper form to your local assessment office.12Maryland Department of Assessments and Taxation. Assessment Appeal Process
What Counties Can and Cannot Tax Beyond Income and Property
Maryland does not allow counties or cities to impose their own general sales tax. The statewide sales and use tax is 6%, and it applies uniformly across every jurisdiction.13Comptroller of Maryland. Maryland Sales and Use Tax 6% Rate Chart You will not see different sales tax rates crossing a county line.
Counties can impose targeted excise taxes. The most common is the admissions and amusement tax, charged on gross receipts from entertainment venues, sporting events, and similar activities. Counties set the rate locally, and it can reach 10% of gross receipts.14Maryland General Assembly. Maryland Tax – General Code Section 4-102 – Authorization to Impose Admissions and Amusement Tax When the activity is already subject to the state sales tax, the admissions and amusement rate is capped at 5% to avoid double-stacking.15Maryland Comptroller. Business Tax Tip 20 – Calculating Admissions and Amusement Tax Some jurisdictions also collect hotel and motel occupancy taxes and parking taxes, usually shown as line items on a customer receipt rather than filed by residents.
Real estate transactions trigger their own local charges. The state imposes a transfer tax of 0.5% of the sale price (0.25% for first-time Maryland homebuyers), and some counties add a local transfer tax on top of that. Recordation tax is a separate charge applied when a deed or mortgage is recorded with the county, calculated per $500 of consideration at a rate that varies by county. Local custom and negotiation determine how these costs are split between buyer and seller at closing.
How Local Income Tax Gets Collected
Maryland uses a single state-and-local tax return. Residents file Form 502, which calculates both liabilities together. Employers withhold based on the local rate for the county where the employee lives, not where they work.2Maryland Comptroller’s Office. 2025 Maryland State and Local Income Tax Withholding Information Employees who don’t submit a withholding certificate get defaulted to the highest local rate of 3.20%. The state then redistributes the local share back to each county or city.
If you move between counties mid-year, update your address with your employer promptly. Moving from a lower-rate county to a higher-rate one without adjusting withholding can leave you short at filing time. Maryland charges interest on overdue income tax, including the local portion, at 9% per year or 3 percentage points above the average prime rate during the preceding fiscal year, whichever is greater. A penalty of up to 10% of the unpaid tax can apply on top of that.
If a Comptroller assessment looks wrong — including your residency determination or the local rate applied — you have 30 days from the mailing date to file an appeal, either online through MyCOMConnect or by mail.16Comptroller of Maryland. Frequently Asked Questions about Hearings and the Appeals Process Assessments are presumed correct, so you carry the burden of showing the error. You can take the hearing officer’s final determination to the Maryland Tax Court within 30 days for a fresh review.