Maryland Governor Martin O’Malley has just signed legislation that, effective for tax years beginning after December 31, 2011, increases personal income tax rates for certain individuals and reduces allowable personal exemption deductions. The salient specifics of the legislation are that:
(1) There is now a new rate bracket of 5.75% for Maryland taxable incomes in excess of: (a) $250,000 for single/separate filers; and, (b) $300,000 for spouses filing jointly, head of household, etc.;
(2) Single/separate filers with Maryland taxable income of $100,000 or less and joint filers (et al) with Maryland taxable income of $150,000 are not affected by the new rate increases, but single/separate filers with more than $100,000 of Maryland taxable income will be subject to higher marginal tax rates as will joint (et al), filers with more than $150,000 of Maryland taxable income; and,
(3) The Maryland Comptroller is authorized to waive any interest or penalty resulting from underpayment payments of estimated tax for calendar year 2012 if the Comptroller determines that the interest or penalty would not have been incurred but for the increase in the income tax rates or reduction in personal exemption resulting from this legislation.
For more information, please contact your Aronson tax professional or Henry Chiwaya at 301.222.8215.