The 183-day rule in Maryland plays a critical role in determining your residency status for tax purposes. If you spend a significant amount of time in Maryland, it’s important to understand how this rule impacts your obligation to file a state tax return. Here’s everything you need to know about the 183-day rule in Maryland.
In Maryland, the 183-day rule defines whether you’re considered a resident for tax purposes. According to this rule, if you live in Maryland for at least 183 days during the year, you are considered a resident and must file a Maryland state tax return. This rule applies regardless of whether you own or rent property in the state, or if you consider Maryland your permanent home.
It’s important to note that it’s the number of days spent in Maryland, not the nature of your living situation, that determines your residency status. If you’re physically present in the state for 183 days or more, you must file taxes as a resident.
A "day" in Maryland is counted whenever you are physically present in the state, even for part of the day. This includes days when you are traveling through Maryland or visiting the state. As long as you are physically there, it counts toward the 183-day total. However, certain days spent outside the state, such as for work, might not count, but specific circumstances can affect this, so additional documentation may be required.
If you do not meet the 183-day threshold, you may still be considered a nonresident or part-year resident. As a nonresident, you’re only required to file a Maryland tax return if you earn income from Maryland sources. On the other hand, part-year residents file taxes based on the period they lived in Maryland.
The 183-day rule is important because it determines your tax filing status. Residents are subject to Maryland state income tax on all income, regardless of where it was earned. Nonresidents or part-year residents are only taxed on income earned within the state. Understanding how long you’ve lived in Maryland helps ensure that you file correctly and comply with the state’s tax laws.
In Maryland, if you spend 183 days or more in the state, you’re considered a resident and must file a state tax return. If you spend less time in Maryland, your tax obligations may differ. Be sure to understand your residency status to avoid any complications during tax season.
