Social Security benefits are a vital part of retirement income for many individuals, but how they are taxed varies by state. In Maryland, Social Security benefits are subject to taxation; however, the state offers exemptions based on your income level and filing status.
Maryland does tax Social Security benefits, but the state provides specific exemptions that can reduce or eliminate the tax burden for many retirees. The amount of your Social Security benefits that is taxed in Maryland depends on your federal adjusted gross income (AGI) and your filing status.
Maryland offers an exemption for Social Security benefits depending on your total income. If your income is below a certain threshold, you may qualify for a full exemption on your benefits. The thresholds for exemption vary by filing status:
If your income exceeds these limits, the taxable portion of your Social Security benefits increases based on your overall income level.
For individuals or couples whose income exceeds the exemption threshold, Maryland provides a partial exemption on Social Security benefits. While a portion of the benefits will be taxed, Maryland’s tax rates on Social Security benefits are generally lower than those of the federal government.
However, it’s important to note that the exact taxable amount will depend on how much income you report on your Maryland state tax return.
As tax laws can change and vary depending on your situation, it’s always wise to check the most recent Maryland state tax laws or consult with a tax professional. They can help you understand how your specific income and filing status will affect the taxation of your Social Security benefits.
