This state is a bit complex for individual filers as not only does the state charge between 2% and 5.5%, but most of the 23 localities also charge residents between 1.15% and 3.15% as an income tax. Standard deduction is up to $2,000 for individuals and double that for married couples. An exemption amount of $3,200 per person is also allowed. Sales taxes are 6%.
All businesses, including sole proprietors, if they own any depreciable assets, must register with the Department of Assessment and Taxation and file an annual personal property return. Corporate tax is a flat 8.25%. Maryland also has many business credits. Especially interesting to note the fringe benefit credits such as the commuting credit, and the green development credits. More information on these business credits is at: http://taxes.marylandtaxes.com/Business_Taxes/General_Information/Business_Tax_Credits/