Maryland County

Maryland county income tax: each county sets a rate between 2.25% and 3.30% of Maryland taxable income; counties may apply the tax on a bracket basis for rates effective on or after January 1, 2022

“(a)(1) Each county shall set, by ordinance or resolution, a county income tax equal to at least 2.25% but not more than 3.30% of an individual's Maryland taxable income for a taxable year beginning after December 31, 2001. ... (c)(1) For any county income tax rate that is effective on or after January 1, 2022, the county may apply the county income tax on a bracket basis.”

Dorchester County adopted the new 3.30% maximum county rate retroactively for TY2025 (the top county rate)

“Dorchester County was the only county to do so, retroactively increasing its rate from 3.20 percent to 3.30 percent for tax year 2025.”

Maryland conforms to IRC §1400Z-2 QOZ gain deferral and exclusion

“Unless the context otherwise requires, the term 'federal taxable income' means federal adjusted gross income adjusted as provided in this title; provided, however, that it means the same as defined in the Internal Revenue Code of 1986, as amended from time to time.”

Note: Md. Code Ann., Tax-Gen. §1-101 defines Maryland taxable income and federal taxable income by rolling reference to the Internal Revenue Code as amended. This rolling conformity incorporates IRC §1400Z-2 (QOZ gain deferral and 10-year exclusion) without modification.

Maryland conforms to IRC §1202 QSBS gain exclusion; no addback

“For the purpose of computing Maryland taxable income, the term 'adjusted gross income' shall mean the same as defined in the Internal Revenue Code of 1986, as amended from time to time.”

Note: Md. Code Ann., Tax-Gen. §10-304 defines Maryland taxable income by rolling reference to federal adjusted gross income and the Internal Revenue Code as amended. This conformity incorporates IRC §1202 (QSBS gain exclusion) without modification; no state-level addback.

Maryland subtraction for U.S. government interest requires income be exempt from state taxes under federal law; FNMA and FHLMC have no such federal bondholder exemption

“An individual may subtract from Maryland adjusted gross income amounts that are required to be subtracted by the laws of the United States.”

Note: The §10-208(a)(2) subtraction requires exemption under federal law. FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) have no bondholder exemption statute; only the corporation itself is exempt from Maryland taxation, not bondholders. No MD Comptroller named-entity publication found; confidence: medium based on structural statutory analysis.

Maryland top income tax rate is 6.5% on income above $1,200,000 (TY2025; BRFA 2025)

“For taxable year 2025, a Maryland income tax is imposed on the Maryland taxable income of an individual at the following rates: 2% on income to $1,000; 3% from $1,001 to $2,000; 4% from $2,001 to $3,000; 4.75% from $3,001 to $100,000; 5.0% from $100,001 to $125,000; 5.25% from $125,001 to $150,000; 5.5% from $150,001 to $250,000; 5.75% from $250,001 to $600,000; 6.25% from $600,001 to $1,200,000; and 6.5% above $1,200,000.”

Note: BRFA 2025 (Ch.604, retroactive to TY2025) added the 6.25% and 6.5% brackets. TF data that predates BRFA is stale for TY2025. Standard deduction $6,700 (TY2025).

U.S. Treasury interest exempt from Maryland income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations

“Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.”

Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.

FHLB and FFCB bond interest exempt from Maryland income tax: federal enabling statutes mandate state tax exemption

“Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.”

Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.

Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation

“The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).”

Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.

Maryland county income tax: each county sets a rate between 2.25% and 3.30% of Maryland taxable income; counties may apply the tax on a bracket basis for rates effective on or after January 1, 2022

“(a)(1) Each county shall set, by ordinance or resolution, a county income tax equal to at least 2.25% but not more than 3.30% of an individual's Maryland taxable income for a taxable year beginning after December 31, 2001. ... (c)(1) For any county income tax rate that is effective on or after January 1, 2022, the county may apply the county income tax on a bracket basis.”