Anne Arundel County Tax Guide

Understanding taxes in Anne Arundel County is essential for budgeting and financial planning. This guide covers property taxes, income taxes, sales taxes, and other tax obligations.

Property Taxes

Anne Arundel County Property Tax

County Tax Rate:

Based on assessed value of property
Rates change annually
Published each fiscal year
Different rates for residential and commercial

Assessment Process:

Property assessed annually
Assessment based on market value
Assessment notices sent annually
Appeal process available

Payment Schedule:

Two installments per year
First installment due July 1
Second installment due December 1
Penalties for late payment

Property Tax Rates

Current Rates:

County portion: Varies annually
State portion: Included in county rate
School portion: Included in rate
Total rate published annually

How to Find Current Rate:

County website
Assessment office
Tax bill notice
Annual publications

Homestead Tax Credit

What It Is:

Limits property tax increase on primary residence
Protects homeowners from assessment increases
Must apply annually
Must be primary residence

Benefits:

Tax savings
Budget predictability
Protection from rapid increases
Apply each year

Eligibility:

Must be primary residence
Must own and occupy
Application required annually
Deadline for application

Tax Appeals

When to Appeal:

Assessment seems too high
Property value decreased
Assessment errors
Compared to similar properties

Process:

Receive assessment notice
File appeal within timeframe
Provide supporting evidence
Hearings scheduled

Supporting Evidence:

Recent appraisals
Comparable sales
Property condition documentation
Errors in assessment

Tax Payment Options

Payment Methods:

Online payment
Mail payment
In-person payment
Auto-pay available

Online Payment:

County website
Credit card or check
Immediate confirmation
Secure processing

Tax Records

Assessment Records:

Public records available
Online access
Property details
Tax history

Tax Bills:

Sent annually
Payment instructions included
Due dates clearly marked
Records maintained

Maryland Income Tax

Maryland State Income Tax

Tax Structure:

Progressive tax system
Multiple tax brackets
Filed annually
Withholding from paychecks

Tax Brackets:

State portion: 2-5.75%
Local portion: 1.75-3.2%
Combined rate varies by income
Baltimore City has higher rates

Filing Requirements:

File if income above threshold
All Maryland income must be reported
Resident vs non-resident rules
Federal return required

Maryland Tax Credits

Available Credits:

Earned income credit
Child tax credit
Education credits
Senior citizen credits
Various other credits

Eligibility:

Income requirements
Filing status requirements
Documentation required
Application process

Withholding

Maryland Withholding:

State tax withheld from paychecks
W-4 form for state
Adjust based on situation
Review annually

Adjusting Withholding:

More withholding = refund
Less withholding = more take-home pay
Balance for cash flow
Avoid underpayment penalties

Sales Tax

Maryland Sales Tax

State Rate:

6% state sales tax
Applies to most goods and services
Some exemptions exist

Local Additions:

County may add local tax
Anne Arundel: Additional tax
Total rate varies by location
Check current rate

Total Anne Arundel Rate:

State: 6%
County additional
Total typically around 7-8%

Sales Tax Exemptions

Non-Taxable Items:

Groceries (food items)
Prescription medications
Medical devices
Clothing (sometimes)
Educational materials

Taxable Items:

Most prepared food
Clothing above threshold
Electronics
Services (varies)
Luxury items

Use Tax

When Applicable:

Purchases from out-of-state
No sales tax paid
Use tax may apply
Self-reported on income tax

Examples:

Online purchases
Out-of-state purchases
Items brought into state
Tax was not collected

Other Taxes

Inheritance Tax

Maryland Inheritance Tax:

Tax on inherited assets
Rates vary by relationship
Exemptions for spouses
File if required

Exemptions:

Spouses exempt
Lineal descendants (some exemption)
Charitable bequests
Specific exemptions

Gift Tax

Maryland Gift Tax:

Coordinated with federal
Federal exemption applies
Maryland follows federal
Rarely affects most taxpayers

Estate Tax

Maryland Estate Tax:

Tax on estate value
Exemption amount applies
Filing required if over threshold
Rate varies by estate size

Exemption:

$5+ million exemption (recent changes)
Amount adjusted periodically
File if over threshold
Federal coordination

Tax Resources

Anne Arundel County Tax Collector

Office: Anne Arundel County Treasurer
Address: County administrative buildings
Phone: 410-222-3140
Website: www.aacounty.org/taxes
Email: [email protected]

Services:

Property tax questions
Payment processing
Records
Payment plans

Official County Property Tax Portal:

www.aacounty.org/taxes
Property assessment information
Tax billing and payment

Maryland Comptroller

State Tax Office:

Income tax questions
Sales tax information
Tax forms
Publications

Official Maryland Tax Website:

marylandtaxes.gov
File taxes online: marylandtaxes.gov/individuals
Business taxes: marylandtaxes.gov/businesses

Phone: 410-767-6300
Address: 1100 State Circle, Annapolis, MD 21401

IRS (Federal)

Federal Taxes:

Federal income tax
Federal employment tax
Other federal taxes

Official IRS Website:

irs.gov
Federal tax forms: irs.gov/forms
File taxes: irs.gov/filing

Phone: 1-800-829-1040

Tax Planning Tips

Property Tax Planning

Watch assessments - Monitor annually
Consider homestead - Apply for credit
Appeal if needed - Don’t accept errors
Budget payments - Plan for two installments
Track improvements - Affects assessment

Income Tax Planning

Withhold correctly - Avoid penalties or over-withholding
Track deductions - Itemized vs standard
Use credits - Reduce tax liability
Keep records - Documentation essential
Plan estimated payments - If self-employed

Sales Tax Planning

Know exemptions - Save on groceries, meds
Compare purchases - Out-of-state may have lower rates
Track use tax - Don’t owe unexpectedly
Business purchases - Resale certificates

Tax Seasons

Property Tax

July 1: First installment due
December 1: Second installment due
April 1: Last day without penalty (varies)
Annual: Assessment notices sent

Income Tax

January-March: W-2 forms received
April 15: Federal deadline
April 15: Maryland deadline (typically)
Extensions available: Federal and state

Sales Tax

Monthly/Quarterly: Business filings
Annual: Some businesses file yearly
Keep records: For audits and reconciliation

Tax Assistance

Free Tax Help

VITA (Volunteer Income Tax Assistance):

Free for low-income
Volunteer preparers
Locations throughout county
During tax season

AARP Tax-Aide:

Free tax help
Seniors and others
Trained volunteers
Various locations

Paid Tax Professionals

CPAs:

Certified Public Accountants
Full tax services
Higher cost
Comprehensive services

Enrolled Agents:

IRS-licensed
Tax specialists
Moderate cost
Tax-focused

Tax Preparers:

Various qualifications
Range of prices
Check credentials
Understand services

Important Tax Dates

Annual Dates

January: W-2 forms due to employers
February: Tax season begins
March: Tax forms available
April 15: Income tax deadline
July 1: Property tax installment 1
December 1: Property tax installment 2

Monthly/Quarterly

Business taxes: Monthly or quarterly filings
Withholding: Business deposits
Sales tax: Business filings

Common Tax Questions

How Much Is Property Tax?

Varies by property value:

Based on assessment
Rate published annually
Call office for estimate
Online calculators available

Can I Reduce Property Tax?

Options:

Homestead credit
Appeal assessment
Check for errors
Tax reduction programs

When Is Maryland Tax Due?

Income Tax: April 15 typically
Property Tax: July 1 and December 1
Sales Tax: Monthly or quarterly for businesses

For more budgeting info:

Official Government Tax Resources

Maryland Department of the Budget and Management

Maryland Comptroller Official Site

Main Tax Website: marylandtaxes.gov
File Maryland Taxes: marylandtaxes.gov/individuals
Business Tax Services: marylandtaxes.gov/businesses
Tax Forms Library: marylandtaxes.gov/forms
Office Address: 1100 State Circle, Annapolis, MD 21401
Phone: 410-767-6300

Anne Arundel County Tax Collector

County Treasurer Official Site

Property Tax Portal: www.aacounty.org/taxes
Payment Portal: www.aacounty.org/taxes/payment
Property Assessment Info: www.aacounty.org/taxes/assessment
Email: [email protected]
Phone: 410-222-3140

Federal Tax Resources

Internal Revenue Service (IRS)

Official IRS Website: irs.gov
Federal Tax Forms: irs.gov/forms
File Federal Taxes: irs.gov/filing
Tax Help: irs.gov/help
Phone: 1-800-829-1040

Maryland Department of Assessments and Taxation

Property and Business Tax

DAT Website: dat.maryland.gov
Property Search: dat.maryland.gov/property
Business Search: dat.maryland.gov/business

Free Tax Assistance

VITA (Volunteer Income Tax Assistance)

Free tax prep for low-income: irs.gov/vita
Find a site: irs.gov/vita/local/vita-locator

AARP Tax-Aide

Seniors and others: aarp.org/taxaide

Last updated: May 2026