Most & Least Taxing States 2012

By Bloomberg BNA - 2012-04-13T16:45:59Z

Photograph by Getty Images

Company Symbol % Change
21 of 53

Maryland

Income tax: 5.5%
State sales tax: 6%
Property tax per capita: $1,171
Inheritance tax: See note*
Estate tax: 0.8% to 16% with $1 million exemption

Maryland and New Jersey are the only states with both an estate tax and an inheritance tax. With a budget gap of more than $1 billion looming, lawmakers are looking at not permitting itemized deductions and raising income tax rates. As the legislature prepared to adjourn April 9, it was considering a proposal to raise the income tax rate by 0.25 percent for single filers with income over $100,000 and joint filers with income over $125,000. If enacted, the tax increase would add an estimated $200 million to Maryland's coffers.

*Spouse and lineal-descendant and sibling transfer is tax-free; all other transfers are taxed at 10 percent.

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