{"place":"Maryland","kind":"state","asOf":"2026-10-07","url":"https://gigaverse.ai/local/maryland","state":{"code":"MD","name":"Maryland","slug":"maryland","incomeTax":{"type":"progressive","flatRate2026":null,"lowestRate2026":2,"topRate2026":6.5,"topRateStartsSingle":1000000,"notes":"State rates run from 2% to 5.75%, plus brackets added in 2025: 6.25% on single taxable income from $500,001 to $1,000,000 and 6.5% above $1,000,000. Every county and Baltimore City adds a local income tax of 2.25% to 3.30% for 2026, collected on the state return. A 2% surtax applies to net capital gains when federal AGI is over $350,000. The 2026 standard deduction is $3,350 for single filers.","source":"https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/worksheets/2026-pv-worksheet.pdf"},"estimatedTax":{"form":"PV (with the Payment Voucher Worksheet for Estimated Tax)","rule":"You must file a declaration if you are required to file a Maryland return and expect more than $500 of state and local tax beyond your Maryland withholding.","schedule":"Same dates as federal (April 15, June 15, Sept. 15, 2026, and Jan. 15, 2027). You can skip the January payment by filing and paying in full by Jan. 31, 2027. Pay at least 110% of last year's tax if your income is rising, to avoid interest.","source":"https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/forms/worksheets/2026-pv-worksheet.pdf"},"minimumWage2026":{"standard":15,"tippedCash":3.63,"tipCreditAllowed":true,"notes":"Tipped employees earn more than $30 a month in tips, and employers must make up any shortfall to $15. Workers under 18 may be paid 85% of the state rate. Higher county rates as of July 1, 2026: Howard County $16.00 for all employers; Montgomery County $18.00 (51+ employees), $16.50 (11-50), and $15.95 (10 or fewer). Montgomery County rates rise each July 1 with inflation.","source":"https://labor.maryland.gov/labor/wages/wagehrfacts.shtml"},"soleProprietorTaxes":[{"name":"Annual report and business personal property tax (SDAT)","summary":"Sole proprietors must file Form 2 by April 15 each year if they own, lease, or use business personal property or need a business license. Personal property tax applies only if total business property in Maryland cost $20,000 or more; below that, you must still file and attest each year to get the exemption. LLCs file Form 1 instead.","source":"https://dat.maryland.gov/Documents/Accessible%20Documents/BPP%20-%20Annual%20Reports%20and%20Returns/INSTRUCTIONS%20FOR%202026%20FORM%202%20SOLE%20PROPRIETORSHIP%20AND%20GENERAL%20PARTNERSHIPS_0408-A.pdf"},{"name":"3% sales tax on data, IT, and software publishing services","summary":"Since July 1, 2025, sales of data, IT, and software publishing services (NAICS 518, 519, 5415, and 5132), such as web hosting, data processing, and computer systems design, are subject to a 3% sales and use tax. Freelancers who sell these services must register and collect it. Contracts signed before July 1, 2025 are generally not taxed, but automatic renewals and new change orders after that date are.","source":"https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/technical-bulletins/tb-56.pdf"}],"contractorLaws":[{"name":"Workplace Fraud Act (construction and landscaping)","summary":"In construction and landscaping, work done for pay is presumed to be employment. The business must show the worker is an exempt person (a sole operator with no employees other than family) or a properly documented business entity, or pass an ABC test: free from control, customarily in an independent business of the same kind, and the work is outside the usual course or places of business. Businesses must give each contractor written notice of their classification in English and Spanish, and knowing misclassification brings fines.","source":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-903&enactments=false"},{"name":"Rideshare driver deactivation protections (Chapter 232 of 2026, HB 480)","summary":"Effective Jan. 1, 2027, rideshare companies must keep a written deactivation policy, may not deactivate drivers for certain reasons, can rely on passenger reports only in limited cases, and must let deactivated drivers withdraw their earnings.","source":"https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/hb0480?ys=2026RS"}],"notes":"A 2026 bill to set minimum per-mile and per-minute pay for rideshare drivers (HB 18) did not pass. A bill to narrow the 3% tech services tax (SB 600) also did not pass."},"stateRetirementProgram":{"state":"Maryland","code":"MD","programName":"MarylandSaves (Maryland Small Business Retirement Savings Program)","status":"active","employerMandate":"Employers registered in Maryland, in operation 2+ calendar years, with at least one W-2 employee, that use an automated payroll system and offer no qualified plan","mandateMin":1,"keyDates":"Launched September 15, 2022. Register or certify an exemption by December 31 of the year after meeting the criteria; registering by December 31 waives the following year’s $300 SDAT annual report filing fee.","covers1099":false,"selfEnroll":"yes","sourceUrl":"https://marylandsaves.com","note":"Maryland is incentive-based rather than penalty-based: there is no monetary fine for non-compliance, only the loss of the filing-fee waiver. The MarylandSaves help centre states that sole proprietors and 1099 contractors can enrol themselves.","lastVerified":"2026-09-09"},"city":null,"guides":[{"audience":"consultants","url":"https://gigaverse.ai/local/maryland/consultants"},{"audience":"freelancers","url":"https://gigaverse.ai/local/maryland/freelancers"},{"audience":"content-creators","url":"https://gigaverse.ai/local/maryland/content-creators"},{"audience":"entrepreneurs","url":"https://gigaverse.ai/local/maryland/entrepreneurs"},{"audience":"gig-workers","url":"https://gigaverse.ai/local/maryland/gig-workers"},{"audience":"tipped-workers","url":"https://gigaverse.ai/local/maryland/tipped-workers"},{"audience":"tradespeople","url":"https://gigaverse.ai/local/maryland/tradespeople"}],"disclaimer":"Educational information for 2026, not tax, legal or investment advice. Sources are cited per fact."}