Maryland Capital Gains Calculator

Calculate your federal and Maryland capital gains tax liability

2025

Calculate Your
Maryland Capital Gains Tax

Maryland taxes capital gains as ordinary income. The state rate is up to 5.75%, and all counties add a local income tax up to 3.20%, for a combined top rate of up to 8.95%.

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Maryland Capital Gains Tax Highlights

Top state rate 5.75%
Mandatory county income taxes up to 3.20%
High combined effective tax rate
y

Enter Your Investment Details

Calculate your capital gains tax for Maryland

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📊 Enter your annual taxable income before including this capital gain. This determines your capital gains tax bracket.

📊 Choose your investment holding period

Calculator optimized for Maryland tax rates

Tax Calculation Results

Your capital gain is: $0.00
Estimated capital gains tax: $0.00
Federal Tax: $0.00
Maryland Tax: $0.00
Net Proceeds After Tax: $0.00
Effective Tax Rate: 0.00%
Disclaimer: Estimate excludes NII taxes, deductions, credits, and losses. Consult a tax advisor.

How Maryland Taxes Capital Gains

Maryland taxes capital gains as ordinary income. The state rate is up to 5.75%, and all counties add a local income tax up to 3.20%, for a combined top rate of up to 8.95%.

2025 Tax Brackets

0% Rate (Single): Up to $48,350
15% Rate (Single): $48,351 - $533,400
20% Rate (Single): Over $533,400

Maryland Tax Details

Tax Rate Structure

Top Rate: 8.95%

Capital gains are taxed as ordinary income using progressive tax brackets.

Key Requirements

Filing Required: If gain exceeds threshold
State Due Date: April 15

Maryland Tax Strategies

  • • Consider timing of asset sales for tax efficiency
  • • Coordinate with federal capital gains strategies
  • • Review loss harvesting opportunities

• Consult with Maryland tax professional for complex situations

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Real Estate in Maryland

Real estate capital gains in Maryland are subject to both federal and state tax considerations:

Maryland Real Estate Tax Rate

Real estate capital gains in Maryland are taxed as ordinary income up to 8.95%.

Primary Residence

Federal Rules

Federal Exclusion: $250K/$500K
Holding Period: 2 of 5 years

Maryland State Rules

State tax applies to gain above federal exclusion

Must file state return if gain exceeds exclusion

Additional Requirements:
  • • Follows federal IRC Section 121.

Investment Property

Tax Deferral Strategies

1031 Like-Kind Exchanges

Defer federal taxes on investment property exchanges

1031 Conformity: ✓ Yes
Bonus Depreciation: ✓ Allowed

Transfer Costs

Transfer Tax

State Rate: 0.5% (State Transfer Tax)
Paid By: negotiable
Local Variations:
  • • Counties levy an additional transfer tax, typically from 0.5% to 1.5%.
Available Exemptions:
  • • First-time homebuyers may be exempt from the state portion.
  • • Transfers between spouses.

Recording Fees

Deed Recording: A flat fee, typically $60.
Mortgage Recording: A flat fee, typically $60.
Additional Fees:
  • • The Deed Recordation Tax is a major cost, with rates set by the county, often between 0.5% and 1.1% or more.
Special Deductions & Notes:
  • • Standard federal depreciation rules apply.

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Property Tax Exemptions

Homestead

$0K

Maximum exemption

Maryland Real Estate Specifics

County Transfer Tax: Varies by county (0.5% - 1.5%)

Deed Recordation Tax: Varies by county (e.g., $8.90 per $1,000 in Prince George's County)

• Maryland has some of the highest real estate closing costs due to the combination of a 0.5% state transfer tax, a county transfer tax, and a county recordation tax.

• The Homestead Tax Credit limits the annual increase in taxable property assessment, protecting owners from large tax spikes.

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Maryland Filing Requirements

Due Dates
Annual Return: April 15
Extension: October 15
Quarterly Est.:
January 15
April 15
June 15
September 15
Required Forms
  • • Form 502
  • • Capital gains schedule
  • • Federal Form 8949 & Schedule D
Payment Options
  • • Online payment portal
  • • Electronic funds transfer
  • • Check or money order

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Compare Maryland to Other States

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© 2025 CapitalGainsTaxCalculator.us - For informational purposes only. Consult a tax professional for advice.