Section 10-105 - State income tax rates. - Maryland Statutes

§ 10-105. State income tax rates.
 

(a)  Individual.-  

(1) Except as provided in paragraph (3) of this subsection, for an individual other than an individual described in paragraph (2) of this subsection, the State income tax rate is: 

(i) 2% of Maryland taxable income of $1 through $1,000; 

(ii) 3% of Maryland taxable income of $1,001 through $2,000; 

(iii) 4% of Maryland taxable income of $2,001 through $3,000; 

(iv) 4.75% of Maryland taxable income of $3,001 through $150,000; 

(v) 5% of Maryland taxable income of $150,001 through $300,000; 

(vi) 5.25% of Maryland taxable income of $300,001 through $500,000; and 

(vii) 5.5% of Maryland taxable income in excess of $500,000. 

(2) Except as provided in paragraph (3) of this subsection, for spouses filing a joint return or for a surviving spouse or head of household as defined in § 2 of the Internal Revenue Code, the State income tax rate is: 

(i) 2% of Maryland taxable income of $1 through $1,000; 

(ii) 3% of Maryland taxable income of $1,001 through $2,000; 

(iii) 4% of Maryland taxable income of $2,001 through $3,000; 

(iv) 4.75% of Maryland taxable income of $3,001 through $200,000; 

(v) 5% of Maryland taxable income of $200,001 through $350,000; 

(vi) 5.25% of Maryland taxable income of $350,001 through $500,000; and 

(vii) 5.5% of Maryland taxable income in excess of $500,000. 

(3) For a taxable year beginning after December 31, 2007, but before January 1, 2011, the State income tax for an individual, including spouses filing a joint return or a surviving spouse or head of household as defined in § 2 of the Internal Revenue Code, is: 

(i) for Maryland taxable income up to $500,000, the rate specified in paragraph (1)(i) through (vi) or (2)(i) through (vi) of this subsection; and 

(ii) for Maryland taxable income in excess of $500,000: 

1. 5.5% of Maryland taxable income of $500,001 through $1,000,000; and 

2. 6.25% of Maryland taxable income in excess of $1,000,000. 

(b)  Corporation.- The State income tax rate for a corporation is 8.25% of Maryland taxable income. 

(c)  Married persons filing joint returns.- For a husband and wife filing a joint income tax return, the rates specified in subsection (a) of this section apply to the joint Maryland taxable income of the husband and wife. 

(d)  Nonresidents.- For a nonresident: 

(1) the rates specified in subsection (a) of this section apply to the nonresident's Maryland taxable income, calculated without regard to the subtractions under § 10-210(b), (e), and (f) of this title; and 

(2) the State income tax imposed equals the result obtained under item (1) of this subsection multiplied times a fraction: 

(i) the numerator of which is the nonresident's Maryland taxable income, calculated with the subtractions under § 10-210(b), (e), and (f) of this title; and 

(ii) the denominator of which is the nonresident's Maryland taxable income, calculated without regard to the subtractions under § 10-210(b), (e), and (f) of this title. 
 

[An. Code 1957, art. 81, § 288; 1988, ch. 2, § 1; 1992, 1st Sp. Sess., ch. 2, §§ 2, 3; 1993, ch. 256, § 1; 1997, ch. 4, § 1; 1998, ch. 4; 2007 Sp. Sess., ch. 3, §§ 1, 4; 2008, ch. 10, § 2.]