Maryland Deductions
Standard Deduction
- The way the standard deduction is calculated is changing for Tax Year 2025. Before 2025, the standard deduction was 15% of MD AGI, wth the maximum standard deduction set at $2,700 for single or MFS and at $5,400 for MFJ, HOH, and QSS.
- For tax years after 12/31/2024, all taxpayers within the same filing status will receive the same standard deduction without regard to AGI.
Maryland Standard Deduction 2025
| File Status | Standard Deduction |
|---|---|
| Single, MFS, or dependent | $3,350 |
| MFJ, HOH, or QSS | $6,700 |
Itemized Deductions
- The Itemized Deduction is the amount from your Federal return minus the state and local income taxes that were used as deductions on your federal return.
- You cannot itemize for Maryland if you did not itemize for Federal.
- For 2025, the amount of otherwise allowable itemized deductions will be reduced by 7.5% of the federal AGI in excess of $300,000 ($200,000 for MFS).
- If you use Sales Tax as a deduction on your federal return, then it will not be deducted from your MD deduction, possibly giving you a larger MD deduction than if you used State & Local Income Taxes. So, you might try to force Sales Tax even if increases your federal taxes if it reduces your MD taxes by a greater amount.
Consider
If you have substantial federal itemized deductions, but not more than the standard deduction, consider forcing the federal return to use itemized deductions and see if there is a net benefit.
9/28/2025 TXLNX
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