Maryland


Maryland Treats Poor Families Under Its Income Tax Better Than Most Other States

 

Maryland’s 1999 income tax threshold — the income level at which families begin paying income tax:

Ranking among 42 states with income taxes

    For two-parent families of four: $24,800.

6th highest

    For single-parent families of three: $24,200.

3rd highest


Maryland’s 1999 income tax on working-poor and near-poor families:
    For families of four with poverty-line incomes ($17,028): $20 refund.

9th lowest

    For families of three with poverty-line incomes ($13,290): $190 refund.

8th lowest

    For families of three with minimum-wage earnings ($10,712): $325 refund.

7th lowest

    No tax on families with income at 125% of the poverty line ($21,285 for a family of four and $16,613 for a family of three).

Maryland has consistently exempted families with below-poverty earnings from the income tax.

In 1991, a family of four owed no tax until its income reached 13 percent above the poverty line. Maryland’s tax threshold is now 46 percent above the poverty line.

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