Maryland Form 1: Annual Report and Personal Property Return

Maryland Form 1 is the annual report and business personal property return that most registered business entities must file with the State Department of Assessments and Taxation (SDAT) each year by April 15. It does two jobs on one document: it keeps your business entity active and in good standing with the state, and it reports the tangible personal property your business owns so Maryland can calculate your personal property tax bill. Missing it triggers penalties, inflated estimated assessments, and eventually the loss of your charter.

Who Has to File

Tax-Property § 11-101 sets out the entities required to file an annual report with SDAT. If any of these describe your business, you have a filing obligation whether or not you own property in Maryland:1Maryland General Assembly. Maryland Code Tax-Property 11-101 – Annual Report

  • Domestic business trusts, statutory trusts, corporations, LLCs, LLPs, and limited partnerships formed in Maryland.
  • Foreign corporations, statutory trusts, LLCs, LLPs, and limited partnerships registered or qualified to do business in Maryland.
  • Any person or entity that owns, or owned during the prior calendar year, property subject to Maryland property tax.

The distinction matters. If you hold a Maryland charter or foreign registration, you file even with zero physical assets in the state. The annual report keeps your entity alive; the property return reports assets if you have them.

Sole proprietorships are not on the § 11-101 list and do not file Form 1. Sole proprietors who own business personal property in Maryland (furniture, tools, equipment, inventory) register separately with SDAT and file Form 2 instead.2Comptroller of Maryland. Tax Guidance – Sole Proprietorships

The April 15 Deadline and How to Extend It

Form 1 is due April 15. If that date lands on a weekend or Maryland legal holiday, the deadline shifts to the next business day. Entities formed during the current calendar year don’t need to file until the following year.3Maryland Department of Assessments and Taxation. Extension Request Form

SDAT grants a two-month extension that pushes the deadline to June 15. Submit the request electronically through SDAT’s extension request site by April 15, or on paper by March 15. Paper requests must include the filing fee set under the Corporations and Associations Article. Fax requests are not accepted. The online tool lets you request extensions for multiple Department ID numbers in one session.4Maryland General Assembly. Maryland Code Tax-Property 14-704 – Tax Penalty When Annual Report Not Submitted

What Form 1 Asks For

The form has two main parts: the annual report (business identification) and the personal property return (asset reporting).

The Annual Report Side

Every filer provides the entity’s exact legal name as registered, its SDAT Department ID number (a letter followed by eight digits), and its Federal Employer Identification Number. You confirm the principal office address and name a Maryland resident agent with address.5Maryland Department of Assessments and Taxation. 2026 Form 1 Annual Report and Business Personal Property Return Stock corporations with total sales over $5 million, and tax-exempt nonstock corporations with operating budgets over $5 million, also report the number of female board members and the total board size.1Maryland General Assembly. Maryland Code Tax-Property 11-101 – Annual Report

The Personal Property Side

The threshold question: does your business own, lease, or use personal property (including inventory) in Maryland with a total original cost of $20,000 or more? If no, you attest to that on the form and skip the detailed property breakdown. If yes, you complete the full personal property schedules.5Maryland Department of Assessments and Taxation. 2026 Form 1 Annual Report and Business Personal Property Return

Above the threshold, you list the original cost of all tangible business assets, broken down by the year of acquisition. Original cost means what you paid, not depreciated book value. The categories cover furniture, fixtures, tools, machinery, equipment, commercial inventory, supplies, and manufacturing inventory. You also allocate values to the specific Maryland county where each asset is physically located, because tax revenue flows to local jurisdictions based on those allocations.

Leased equipment trips up filers regularly. If you lease personal property from another business and the lessor does not report it on its own Form 1, you must report it on yours. Copiers, production equipment, and commercially leased vehicles are common examples. When you’re not sure, ask the lessor directly whether they report the asset to SDAT.

Home-based businesses may qualify for a separate personal property tax exemption if the total original cost of all business personal property (including average inventory, excluding registered vehicles) is less than $10,000.6Maryland Department of Assessments and Taxation. Personal Property Tax Exemption for Home-based Businesses

The $300 Filing Fee and the MarylandSaves Waiver

Most entities pay a $300 filing fee with Form 1, including domestic and foreign stock corporations and LLCs.5Maryland Department of Assessments and Taxation. 2026 Form 1 Annual Report and Business Personal Property Return

One route around the fee: businesses that sponsor a qualified employee retirement plan can apply for a waiver through the MarylandSaves program. To qualify, the business must have employees and must have made at least one payroll-deducted contribution to an employee’s retirement account during the prior calendar year. Qualifying plans include 401(k), 403(b), SEP, SIMPLE IRA, and governmental 457(b) plans, among others. If you offer your own qualified plan rather than enrolling in MarylandSaves, you still have to complete a waiver certification form each year to claim the fee waiver.

How to Submit It

The primary filing channel is the Maryland Business Express portal at egov.maryland.gov/businessexpress. You’ll need a user account. The portal takes the annual report, the personal property return, and the $300 fee (credit card or electronic check) in a single transaction and issues a confirmation number when the filing is complete.5Maryland Department of Assessments and Taxation. 2026 Form 1 Annual Report and Business Personal Property Return

To file by mail, send the completed form and payment to:

Department of Assessments and Taxation, Business Services Unit
P.O. Box 17052
Baltimore, MD 21297-1052

SDAT’s Baltimore office at 123 Market Place accepts drop-offs of annual reports and personal property returns without an appointment. Same-day rush processing is available for charter-related filings only, costs $425 above the regular fee, and requires drop-off in a sealed envelope by 10:00 AM for 3:45 PM pickup.7Maryland Department of Assessments and Taxation. Charter Business Services

Penalties If You File Late

Under Tax-Property § 14-704, SDAT assesses an initial penalty of up to 1/10 of 1% of your total county assessment across all counties where your property is located. That initial penalty is capped at $500 and carries minimum floors based on how late the filing is:4Maryland General Assembly. Maryland Code Tax-Property 14-704 – Tax Penalty When Annual Report Not Submitted

  • 1 to 15 days late: minimum $30.
  • 16 to 30 days late: minimum $40.
  • Over 30 days late: minimum $50.

Interest then accrues at 2% of the initial penalty amount for each 30-day period (or fraction of one) the report stays outstanding. A $500 initial penalty grows by $10 every month it goes unpaid.

SDAT can reduce or waive the penalty for good cause. Unpaid penalties eventually go to Maryland’s Central Collection Unit, which adds another 17%.8Maryland Department of Assessments and Taxation. Frequently Asked Forfeiture Questions Businesses that don’t file at all face estimated assessments set at twice the estimated value of their personal property, generating a real tax bill that filing even a minimal return would avoid.5Maryland Department of Assessments and Taxation. 2026 Form 1 Annual Report and Business Personal Property Return

Charter Forfeiture Is the Real Risk

The longer-term consequence is losing your entity altogether. SDAT runs an annual forfeiture process against entities with delinquent filings, unpaid penalties, or dishonored fee checks. The timeline runs:8Maryland Department of Assessments and Taxation. Frequently Asked Forfeiture Questions

  • April 15: filing deadline passes.
  • July through September: SDAT publishes a potential forfeiture list online.
  • Early October: SDAT mails a Final Forfeiture Notice with a cure deadline.
  • December: entities that haven’t resolved the issue are forfeited.

For domestic entities, forfeiture means losing your Maryland charter. For foreign entities, it means losing authority to do business in the state. A forfeited entity cannot obtain a certificate of good standing, which banks, lenders, title companies, and contracting parties routinely require.9Maryland Department of Assessments and Taxation. Certificate of Status

You can stop forfeiture at any point before the Final Forfeiture Notice deadline by filing the delinquent Form 1, paying the penalty, and clearing any dishonored check. Revival after forfeiture is possible but costs more in filings and fees than catching up before December would.