Maryland Income Tax Forms Rates & Services

The Maryland income tax rate is set at 4.75 percent and it applies to residents who have accrued income from a Maryland source. Nonresidents who have Maryland income are subject to a special nonresident tax rate of 6 percent.

If you or the spouse of military retiree receives military retirement income, you will be able to subtract up to $5,000 of your military retirement income from your Maryland taxes for tax year 2006.

Maryland's maximum pension exclusion allows eligible residents to subtract some taxable pension and retirement annuity income from your federal adjusted gross income. This subtraction applies only if:

• You were 65 or older or totally disabled, or your spouse was totally disabled, on the last day of the tax year; and
• You included on your federal return income received as a pension, annuity or endowment from an "employee retirement system."  (traditional IRA, Roth IRA, simplified employee plan (SEP), Keogh Plan or ineligible deferred compensation plans do not qualify)

Maryland taxpayers who have sheltered displaced victims of Hurricane Katrina may be eligible for a one-time $2,400 personal exemption on their 2005 or 2006 Maryland return for each dependent victim (up to a maximum of four dependent victims). The exemption is doubled to $4,800 for any dependent victim 65 or older.

Other Helpful Links:
Comptroller of Maryland: http://www.comp.state.md.us/
Maryland Income Tax Frequently Asked Questions: http://individuals.marylandtaxes.com/faq/personal.asp
Maryland Tax Forms: http://individuals.marylandtaxes.com/taxforms/default.asp
Internal Revenue Service: http://www.irs.gov/