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How do taxes in Maryland differ from other states?

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Quick Answer

Taxation in Maryland is different from other states in a number of ways. For example, Maryland residents who pay income tax to other states don’t automatically qualify for tax credits, explains the Comptroller of Maryland. Nonresidents are specifically exempted from claiming the mentioned credit.

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Full Answer

Maryland residents who work outside the state may be required to file income tax returns with both states. This applies to residents employed in Delaware among other states. Residents who work in or commute to Pennsylvania, Washington, D.C., Virginia or West Virginia are eligible for tax credit refunds if their employer withholds taxes for the particular state. However, such residents are only required to file income tax returns with the Maryland state government. Residents employed in a state other than those mentioned are advised to contact the tax authority in that state to establish their taxable status, according to the Comptroller of Maryland.

Taxation in Maryland is also different from other states such as Georgia in the sense that nonresidents are required to pay an additional tax rate of 1.25 percent on top of their income tax rate, explains Bankrate. The state of Maryland does not place limitations on property tax rates imposed by the state. This gives Maryland counties and cities the freedom to set property tax rates sufficient for funding of government activities.

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