Taxes

County Tax Rates

 

Property: per $100 of assessment in 2008

Transfer: FY 2009

Recordation: per $500 of transaction in FY 2009

 

Real

Personal

Utility

 

 

Anne Arundel

$0.90

$2.20

$2.20

0.50%

$3.50

Baltimore Co.

$1.10

$2.80

$2.80

1.50%

$5.00

Baltimore City

$2.30

$5.70

$5.70

1.50%

$2.50

Carroll

$1.00

$2.60

$2.60

0%

$5.00

Cecil

$1.00

$2.40

$2.40

0%

$4.10

Harford

$1.10

$2.70

$2.70

1%

$3.30

Howard

$1.00

$2.50

$2.50

1%

$2.50

Data Source: Maryland Department of Assessments and Taxation

Baltimore Region Tax Summary

In addition to tax exemptions and credits offered by the state, Maryland has:

  • No gross receipts tax on manufacturers
  • No corporate franchise tax
  • No unitary tax on profits
  • No income tax on foreign dividends (if the corporation owns 50 percent or more of the subsidiary)
  • No separate school taxes

International accounting and consulting firm KPMG recently published the 2008 Competitive Alternatives Guide to International Business Location, which named the Greater Baltimore region a great place to do business. According to a story appearing in the Monday, July 28th edition of the Gazette, “Baltimore has one of the nation’s – and world’s – most business-friendly tax climates.”  

The study found that:

  • Baltimore ranks 8th among the 35 largest international cities for overall tax competitiveness.  This index takes into account the overall tax burden on businesses.  With a score of 92.1, Baltimore ranks much better than the US average.  In the US, Baltimore ranks behind only San Juan, Puerto Rico on this index.
  • Baltimore has a 7.9% advantage over the US average.  In the US, Baltimore ranks behind only San Juan, Puerto Rico on this index.
  • Baltimore ranks 1st among Northeastern US cities (populations above 1.5 million) for offering business costs below the US average; in this category, only Baltimore and Montreal are below the baseline U.S. average.
  • Baltimore ranks 2nd in R&D expenditures as a percentage of GDP (6.22%), in a top 20 international comparison.

The full report, with more rankings, can be downloaded from the KPMG website.

 

Previously, a year 2000 report by the Maryland Budget & Tax Policy Institute found that:

  • Maryland collects less public revenue relative to the state’s economy than most other states.
  • State and local own-source revenue in Maryland has declined over the past quarter of a century relative to the economy—most other states’ revenues have increased.
  • Although Maryland’s personal income tax collections are higher than most other states’, its corporate income, sales, and property tax revenues are lower.