Capital gains: Taxed as ordinary income plus a 2% surtax on net capital gains when federal AGI exceeds $350,000 (from tax year 2025; some exclusions, including primary homes sold for up to $1.5 million). County income taxes also apply.
What changed: 2025 budget law (HB 352) added 6.25% and 6.5% brackets above $500,000 and $1 million, the 2% capital gains surtax, and a cut to itemized deductions above $200,000 AGI.
| May 20, 2025 | Maryland Budget Reconciliation and Financing Act of 2025 (HB 352) Added 6.25% and 6.5% brackets above $500,000 and $1 million, plus a 2% surtax on capital gains when federal AGI exceeds $350,000. Itemized deductions are reduced by 7.5% of AGI above $200,000. | In effect |
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