Maryland Tax Changes 2026: A CPA Guide | HelloBooks Maryland 2025: new 6.25% and 6.5% brackets, flat standard deduction, itemized deduction phase-out, a 2% capital gains surtax and local rate cap of 3.30%.
Maryland’s 2025 budget law raised tax on high earners in four different ways at once. Clients with income over a few hundred thousand dollars will feel more than one of them.
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Applies: Tax years beginning after December 31, 2024From IRS.gov · checked October 10, 2026
The Comptroller’s Tax Alert (revised December 22, 2025) explains Chapter 604 of 2025. The 5.75% bracket is capped and two brackets are added: 6.25% from $500,001 (single) or $600,001 (joint), and 6.5% over $1,000,000 (single) or $1,200,000 (joint).
From 2026, counties and Baltimore City may levy up to 3.30%. Dorchester raised its 2025 rate retroactively to 3.30%, and Allegany and Kent raised theirs for 2026.
Clients planning a large asset sale should model the surtax before closing. HelloBooks reports can give you a year-to-date income figure to start that conversation. Maryland sales tax is at /us/sales-tax/maryland.
General information for tax professionals, not advice on a specific return. Figures are from IRS.gov on the date shown; check the current IRS instructions before filing.
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