Calculate your federal and Maryland capital gains tax liability
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
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Calculate your capital gains tax for Maryland
📊 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
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
Maryland Tax Details
Tax Rate Structure
Capital gains are taxed as ordinary income using progressive tax brackets.
Key Requirements
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
Related Tax Services
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
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
Transfer Costs
Transfer Tax
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
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.
Investment & Tax Services
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.
Real Estate & Investment Services
Maryland Filing Requirements
Due Dates
Required Forms
- • Form 502
- • Capital gains schedule
- • Federal Form 8949 & Schedule D
Payment Options
- • Online payment portal
- • Electronic funds transfer
- • Check or money order
Tax Professional Services
Compare Maryland to Other States
Tax Calculation Results
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