Several changes to income tax in Maryland will take effect for the 2018 tax filing season.
Maryland Standard Deduction
For tax year 2018, the standard deduction is increased to:
- a maximum value of $2,250 for single taxpayers; and
- $4,500 for head of household, a surviving spouse, and taxpayers filing jointly.
Maryland’s maximum pension exclusion increased from $29,900 to $30,600 for tax year 2018.
In addition, an individual without a qualifying child may claim the earned income credit without regard to the minimum age requirement under the Internal Revenue Code if they are otherwise eligible for the federal credit.
Individual Taxpayer Changes
The annual interest rate decreases from 11.5% to 11% on January 1, 2019. The refundable earned income tax credit amount for eligible residents is 28% of the federal EIC.
Business Taxpayer Changes
A single sales factor formula will be phased in over a five year period beginning in tax year 2018.
The following business tax credits are new:
- Small Business Relief Tax Credit,
- Cybersecurity Incentive Tax Credit,
- Energy Storage Systems Tax Credit, and
- More Jobs for Marylanders Tax Credit.
Additional tax changes can be viewed on the comptroller’s website at https://taxes.marylandtaxes.gov/Business_Taxes/General_Information/Whats_New_for_the_Tax_Filing_Season.shtml.
News Release, Comptroller of Maryland, December 31, 2018