Yes, Maryland has local taxes, and they apply to every resident. Each of the state’s 23 counties and Baltimore City charges a local income tax between 2.25% and 3.30% of your Maryland taxable income, sets its own property tax rate, and can add taxes on real estate transactions, hotel stays, and entertainment.1Maryland General Assembly. Maryland Code, Tax-General 10-106 What you owe depends heavily on where you live.
The Local Income Tax Every Marylander Pays
State law requires every county to impose a local income tax on the Maryland taxable income of its residents.2Maryland General Assembly. Maryland Code Tax-General 10-103 – County Income Tax It runs as a “piggyback” on the state return: the county rate applies to the same taxable income figure you already report to the state, and your county of residence on the last day of the tax year determines which rate you owe. There is no way to opt out.
The floor is 2.25% and the ceiling is 3.30%.1Maryland General Assembly. Maryland Code, Tax-General 10-106 Counties can move within that window each budget cycle, so a rate that applied last year may not apply this year.
2026 County Rates
Most jurisdictions use a single flat rate. For tax year 2026, the following charge 3.20%: Allegany, Baltimore County, Baltimore City, Calvert, Caroline, Howard, Montgomery, Prince George’s, Queen Anne’s, St. Mary’s, Somerset, and Wicomico.3Comptroller of Maryland. 2026 Maryland State and Local Income Tax Withholding Information Dorchester and Kent both sit at the legal maximum of 3.30%.
Other flat-rate counties in 2026:
- Carroll: 3.03%
- Cecil: 2.74%
- Charles: 3.03%
- Garrett: 2.65%
- Harford: 3.06%
- Talbot: 2.40%
- Washington: 2.95%
- Worcester: 2.25% (the legal minimum)
Two counties use graduated brackets, an option Maryland law has permitted since 2022.1Maryland General Assembly. Maryland Code, Tax-General 10-106 Anne Arundel charges 2.70% on income up to $50,000 for single filers ($75,000 joint), 2.94% on the next tier up to $400,000 ($480,000 joint), and 3.20% above that. Frederick charges 2.25% up to $25,000, 2.75% on the next tier up to $50,000 single ($100,000 joint), 2.96% on the next tier up to $150,000 ($250,000 joint), and 3.20% above that.3Comptroller of Maryland. 2026 Maryland State and Local Income Tax Withholding Information In those two counties, lower earners pay a smaller percentage than higher earners; everywhere else, the flat rate applies regardless of income.
If You Live Outside Maryland
Non-residents who earn Maryland-sourced income owe a special nonresident local tax of 2.25% on that income, no matter which county the income came from.3Comptroller of Maryland. 2026 Maryland State and Local Income Tax Withholding Information You file Form 505 instead of the resident Form 502. Your home state will usually credit taxes paid to Maryland, but check its rules before assuming so.
Local Property Taxes
Property tax involves two government layers. The State Department of Assessments and Taxation (SDAT) values your property on a three-year reassessment cycle, and your county or municipal government sets the rate applied to that value.4Maryland General Assembly. Maryland Tax-Property Code 6-202 – Imposition of County Property Tax Rates are expressed as dollars per $100 of assessed value and differ widely.
If your property sits inside an incorporated city or town with its own property tax, you pay both the county rate and the municipal rate. That is worth checking when comparing homes near a municipal boundary, because two houses across the street from each other can carry meaningfully different bills.
When Property Tax Is Due
The fiscal year property tax becomes due on July 1. Owner-occupants pay on a semi-annual schedule: the first installment by September 30, the second by December 31.5Maryland General Assembly. Maryland Code, Tax-Property 10-204.3 Paying the full annual amount before September 30 avoids the service charge that otherwise applies to the second installment.6Maryland Department of Assessments and Taxation. Question and Answers on Semiannual Property Tax Payment Interest accrues on unpaid balances after the deadlines.
Appealing an Assessment
If you think SDAT’s assessment is too high, you have 45 days from the date on your reassessment notice to file an appeal.7Maryland Department of Assessments and Taxation. Assessment Appeal Process The appeal starts with a local supervisor and can be escalated to the Property Tax Assessment Appeals Board and then the Maryland Tax Court. Miss the 45 days and you are stuck with the assessment until the next triennial cycle.
Property Tax Relief You Can Apply For
Two separate programs can reduce a homeowner’s bill. Both apply only to your principal residence.
Homestead Tax Credit
The Homestead Tax Credit caps how much your taxable assessment can rise each year. State law limits the annual increase to no more than 10%, and many counties and municipalities set a lower cap.8Maryland Department of Assessments and Taxation. Maryland Homestead Property Tax Credit Program The market value on record does not change; you simply are not taxed on any increase above the cap until the taxable assessment catches up over time.
To qualify, the property must be your principal residence, you must have lived in it at least six months of the year including July 1, and it cannot have been transferred to a new owner or reclassified in a way that raised its value.8Maryland Department of Assessments and Taxation. Maryland Homestead Property Tax Credit Program A single application to SDAT is all it takes; after that the credit applies automatically as long as you still qualify.
Homeowners’ Property Tax Credit
This is an income-based credit that limits how much of your income goes toward property tax. For 2026, your combined gross household income for 2025 cannot exceed $60,000, and your net worth (excluding the home itself and retirement accounts) cannot exceed $200,000.9Maryland Department of Assessments and Taxation. Homeowners’ Property Tax Credit Program The home has to be your principal residence and you must have a legal interest in it.
The 2026 application window runs February 2 through October 1, with no fee.10Maryland OneStop. Homeowners’ Property Tax Credit Application Form HTC (2026) Complete applications received before April 15 produce a credit on the July bill; later applications result in a refund if you have already paid. Fixed service charges like sewer or water on your tax bill are not covered.
Taxes You Pay When Buying or Selling
Real estate transactions carry two more local-related taxes, usually paid at closing.
The state transfer tax is 0.5% of the sale price, including any mortgage the buyer assumes. First-time Maryland homebuyers purchasing a principal residence get a reduced rate of 0.25%, and in that case the seller is required to pay the full amount.11Maryland General Assembly. Maryland Code, Tax-Property 13-203 Every buyer named on the deed must be a first-time Maryland homebuyer for the reduced rate to apply. Counties can layer their own transfer tax on top, so totals vary.
The state recordation tax is $2.50 per $500 of consideration (or fraction thereof) on instruments transferring property or securing debt.12Baltimore County Government. Deed Transfer and Recordation Counties add their own, and local rates differ significantly. When refinancing a principal residence, the recordation tax generally applies only to the difference between the old payoff and the new loan.
Admissions, Amusement, and Hotel Taxes
Counties and municipalities can impose an Admissions and Amusement Tax on gross receipts from entertainment and recreational activities.13Maryland General Assembly. Maryland Code Tax-General 4-102 – Authorization to Impose Admissions and Amusement Tax Movie tickets, concerts, athletic events, and golf fees can all fall under it. Rates vary by jurisdiction, and the Comptroller of Maryland collects the tax and returns it to the local government that levied it.14Maryland Manual On-Line. Comptroller of Maryland – Origin and Functions
Many counties also apply a transient occupancy tax to hotel stays and short-term rentals. Guests pay it, but if you host a short-term rental you are usually the one who has to collect and remit it.
Where and How You Actually Pay
You do not file separately with your county for income tax. The Comptroller of Maryland collects state and local income taxes together on a single Form 502 (or Form 505 for non-residents) and distributes each county’s share.14Maryland Manual On-Line. Comptroller of Maryland – Origin and Functions
Property tax works the other way. Your county’s finance office or treasurer bills and collects it directly. If you have a mortgage with an escrow account, your lender usually pays it on your behalf from the monthly amount you have already been paying in.