Maryland state tax basis is the Federal Adjusted Gross Income (AGI).

Interest/Divident Income: Interest and Divident income from U.S. government bonds are exempt from State Taxes.

Rent Income: Same as federal.

Capital Gain: The Capital Gains are treated similar to Federal Taxes for State Taxes.

Unemployment Income: Same as federal

Social Security Benefits: All social security income is exempt from state taxes.

State Bond Interest: Taxable except Maryland obligations.

Health Savings Accounts: Same as federal.

Disability: Exempt for job related injuries for police and firefighters.

Lottery: Same as federal.

Federal Income Tax: Not deductible

Other Taxes: Employee contributions to a Maryland retirement or pension system are included in state income. Income also includes 50% of taxable tax preference items over $10,000 ($20,000 if married). In addition, federal deductions for which Maryland provides a tax credit must be added to income. Deductions for child and dependent care expenses, adoption expenses, contributions to and earnings on prepaid tuition contracts, use of vehicle for charitable purposes, and expenses incurred by the blind for a reader. Exclusion for certain income artists' contributions and certain income of qualifying artists in arts and entertainment districts. Two-income subtraction of up to $1,200. Exclude $3,500 for volunteer fire or rescue personal. *Reduced by social security and retirement benefits. **All pension benefits to police and firefighters (or their beneficiaries) as a result of job related injuries (or death) are exempt.

Check other state tax links below.