📅 2026 Update: Recent Changes in Maryland State Tax

Since the original article on Maryland state tax was written, several new developments have occurred that affect tax laws and procedures. This update highlights key changes from 2024 to 2026. The earlier article continues further down the page for additional context on Maryland's tax structure.

🏛️ Changes in Pass-Through Entity Taxes

Several states have enacted Pass-Through Entity Taxes (PTET) similar to Illinois' entity-level tax. These changes could impact Maryland residents who operate businesses structured as pass-through entities. States like Hawaii, Iowa, and Kentucky introduced their own PTET legislation, effective in recent years.

💰 Current Fees and Costs

As of October 2026, Maryland's Department of Motor Vehicles (DMV) requires specific fees for vehicle title services. It's crucial for taxpayers to stay informed about these fees, as they can affect overall tax planning and budgeting.

📄 Important Tax Forms

Taxpayers should be aware of important forms to handle their tax matters. Form 3911 is used to trace unreceived refunds, while Form 8716 allows for an automatic extension of time to file certain business returns. Both forms have varying processing times, so submitting them promptly is essential.

🕒 Timely Filing Deadlines

Filing deadlines remain crucial for avoiding penalties. Form 1065, which partnerships must file, is generally due on the 15th day of the 3rd month after the end of the partnership's tax year. Taxpayers should mark these dates on their calendars to ensure compliance.

📌 Summary of Key Points

  • 🏛️ New PTET laws enacted in multiple states.
  • 💰 DMV fees for vehicle titles updated as of October 2026.
  • 📄 Essential forms like Form 3911 and Form 8716 introduced for tax matters.
  • 🕒 Important deadlines for filing forms to avoid penalties.

💡 Tips for Managing Maryland State Tax Matters

Reviewing your individual tax situation with an attorney can help clarify your options and obligations.

📑 Understand Pass-Through Entity Taxes

If you operate a pass-through entity, familiarize yourself with the new PTET laws in other states. These laws could influence business tax strategies and how Maryland interacts with neighboring states.

📅 Keep Track of Deadlines

Note the deadlines for filing tax forms like Form 1065. Late filings can lead to penalties, which can add unnecessary costs to your tax obligations.

📞 Use Available Resources

Consider utilizing free resources like the Volunteer Income Tax Assistance (VITA) program. They provide free help to those who need assistance with tax returns, which can be beneficial for low-income taxpayers.

🔄 Stay Informed on Fees

Keep an eye on any changes to fees from the Maryland DMV or other state agencies. Understanding these costs can better prepare you for any financial obligations related to taxes.

📊 Keep Records Organized

Maintain organized records for all tax-related documents. This practice can streamline the process of filing your taxes and help avoid issues with unreceived refunds.

🏆 Maryland State Tax Services Ranked by User Reviews (2026)

This section highlights tax services relevant to Maryland state tax, based on Trustpilot data from October 2026. These rankings reflect user experiences and satisfaction, but star ratings are only one aspect to consider when choosing a service. Unhappy customers often leave more reviews, and sample sizes can vary.

🥇 1. SMAART Tax

SMAART Tax has been rated 4.4. It is known for providing virtual tax services across all 50 states. However, it primarily focuses on online support, which may limit in-person consultations that some clients prefer.

🥈 2. KBO Tax & Accounting Services

KBO Tax & Accounting Services has a Trustpilot score of 4.5. This service is recognized for its nationwide tax preparation and accounting services. Some users have noted that it has limited in-person office locations, which might not meet everyone's needs.

🥉 3. Jackson Hewitt Tax Service

Jackson Hewitt Tax Service holds a Trustpilot rating of 4.2. Known for its tax preparation services and having locations nationwide, it offers access to a broad customer base. Some reviewers have mentioned issues with customer service responsiveness.

4️⃣ Libre Tax Service

Libre Tax Service has an average score of 4.1. This company is known for online tax preparation and offering IRS audit defense. However, some users have found the website navigation challenging, which can affect the overall experience.

5️⃣ TaxSlayer

TaxSlayer holds a Trustpilot score of 4.0. It is recognized for its online tax preparation software at affordable pricing. Some customers have reported occasional software glitches, which can impact user experience during tax season.

🆓 Free Tax Assistance Programs

Free tax assistance programs are available for those who qualify. Options include the IRS Free File program and the Volunteer Income Tax Assistance (VITA) service. These programs aim to help eligible taxpayers prepare and file their tax returns without charge.

🔎 Considerations for Choosing Tax Services

  • 📊 Review Trustpilot ratings and customer feedback.
  • 💻 Evaluate the availability of online vs. in-person services.
  • 📅 Check for timely assistance during tax season.
  • 📞 Look into customer service responsiveness.
  • 🔍 Assess additional features like IRS audit defense.

❓ Frequently Asked Questions

❓ What is a Pass-Through Entity Tax?

A Pass-Through Entity Tax (PTET) is a tax applied to pass-through entities like partnerships and S corporations. This tax allows business owners to pay taxes at the entity level rather than at the individual level.

🕒 When are tax forms due in Maryland?

Tax forms such as Form 1065 are generally due on the 15th day of the 3rd month after the end of the partnership's tax year. Keeping track of these deadlines can help avoid late fees.

📄 How can I trace my unreceived refund?

To trace a refund that you have not received, complete Form 3911, Taxpayer Statement Regarding Refund. This form allows you to request a trace through the IRS.

📞 Where can I find free tax assistance?

Free tax assistance is available through programs like VITA and Tax Counseling for the Elderly (TCE). These programs provide help to eligible individuals needing assistance with tax preparation.

💻 What are the benefits of using online tax services?

Online tax services can offer convenience, affordability, and access to resources from home. However, it's important to assess the level of customer support available when using these services.

📋 What should I do if I miss a filing deadline?

If you miss a filing deadline, file your return as soon as possible to minimize penalties. You may also want to consult a tax professional to discuss your options.

⚖️ Recent Cases Related to Maryland State Tax

Several recent court rulings have impacted tax laws in Maryland, which can affect how individuals and businesses approach their state taxes.

For more information on recent rulings, please check more rulings on the news page.

End of October 2026 Update





There are a number of taxes applicable to the state of Maryland, which includes sales tax, five income brackets for personal income taxation as well as local taxes.  Tax returns are due on April 15.

Maryland state sales tax – 6%, no local sales tax (food, prescription drugs, clothing up to $175, and utilities such as gas, oil and electricity are exempt)

Maryland state personal income tax

Eight income brackets for single filings

📝 See Also

2% - first $1,000 of taxable income

3% - $1,001 - $2,000

4% - $2,001 - $3,000

4.75% - $3,001 - $150,000

5% - $150,001 - $300,000

5.25% - $300,000 - $500,000

5.5% - $500,001 – 1 million

6.25% - $1 million+

Counties and municipalities may add taxes from 1.25% to 3.20% to “piggyback” on state rates.  Baltimore city, for example, levies a tax of 3.05% on top of Maryland state taxes.

Maryland State Tax

Maryland state excise taxes

Taxes assessed on vehicles, alcohol, tobacco, gasoline and are in addition to federal excise taxes.

$2.00 per package of 20 cigarettes,

$1.50 tax per gallon of liquor

$.09 per gallon barrel of beer

$.40 per gallon of wine

$.235 a gallon on gasoline , $.24.3 on diesel

Maryland inheritance tax

Maryland exempts taxation if the estate passes to a spouse, child and/or relative of lineal descent, parent, grandparent or sibling.  Any other transfer of estate is subject to a 10% tax rate.  A tax return must be filed if the estate exceeds $1,000,000.  This estate is taxed at 16%.

Maryland payroll taxes

State Disability Insurance – none

State Unemployment Insurance – 1.32% to 12.33%, wage base is $8,500.  Employer contribution is 2.3% but if the employer is a construction firm form out of state, that rate is 9.4%

Maryland state property tax

Property must be assessed by Jan 1, annually and listed by March 15.  The Maryland State property tax is 11.2 cents per $100 of assessed value.  There is an additional assessment for local taxes, which ranges from $0.475 to $2.268.  The Homestead Credit caps tax increases at 10% or less and there is a homeowner’s property tax credit for homes under $60,000 in value.  Property tax bills are issued in July or August of each year.

Exemptions

Pension income exclusion stands at $23,600 for in certain cases.  There are also a number of personal income credits available, such as a credit for buying health insurance.

Corporate income tax

The corporate tax rate in Maryland is 8.25%.  This is modified if the corporation operates across multiple states.  Proceeds from the corporate tax are paid into the Higher Education Investment Fund.

Misc

Social Security, railroad retirement income are not taxed under Maryland law.

Military personnel receiving their only income from the military pay will be exempt from taxes in Maryland.  If they receive income in Maryland, military pay will not be used in their income calculation.  They will not need to file tax returns.  Blind veterans and spouses also receive special property tax exemptions.