Maryland Estate Taxes

Maryland has decoupled from the Federal Estate Tax and imposes taxes on  estates over $1,000,000. The tax rate can range from nine percent (9%) to sixteen percent (16%), of the amount subject to tax.

Te Maryland estate tax is a state tax imposed on the transfer of property in a decedent's estate. Currently, a Maryland estate tax return must be filed if the decedent's federal gross estate, plus adjusted taxable gifts, is $1,000,000 or greater, and the decedent was either a resident of Maryland at the time of death or a nonresident who owned real or tangible personal property in Maryland.

How do I file the Maryland estate tax return? And when?

Once you have determined a Maryland estate tax return is required to be filed for the estate, complete the federal estate tax return, Form 706. You will be required to complete the federal return even though you may not be required to file the return with IRS.

The assets subject to probate may not nclude all of the assets which need to be reported on the estate tax return. Typically, retirement plans such as 401(k), 403(b) IRAs and life insurance proceeds may also need to be reported on the return.

Using the information from the federal return, complete the Maryland estate tax Form MET-1, using the form appropriate for the date of the decedent's death:

File the return within nine months after date of death, or by the approved extension date, with the Register of Wills office for the county in which the estate is being administered. For nonresident decedents, this is the jurisdiction in Maryland where property is located.

Include the following when filing the Maryland estate tax return:

  • Maryland Schedule A, if applicable.
  • Maryland Schedule B.
  • Maryland Schedule C, if applicable.
  • Maryland Schedule D, if applicable.
  • Federal estate tax return, Form 706, including schedules, attachments and supporting documents.
  • Maryland estate tax payment.

Where do I send my check?

The Maryland estate tax is payable to the Comptroller of Maryland. Do not send the estate tax payment to the Register of Wills.

Mail the estate tax return and payment to:

Comptroller of Maryland
Estate Tax Section
P.O. Box 828
Annapolis, MD 21404-0828

Can I do this on my own?

Preparation of a Maryland Estate Tax  return  may be  confusing. All Maryland Estate Tax Returns are AUDITED. As such, we recomend that a PAID Preparer be utilized to assist in the preparation of the return. We have several CPA's in our office who have extensive experience preparing Maryland Estate Tax Returns. 

What happens if the return is late?

Expect to pay penalties, and interest.

What happens if I leave an asset off the return ?

Personal Representatives who file inaccurate , incomplete, or fraudulent returns may be PERSONALLY subject to civil fines, and potential criminal sanctions, including imprisonment. Personal Representatives who fail to file  returns on taxable estates may  be PERSONALLY subject to civil fines  and potential criminal  sanctions, including imprisonment.

Links: Maryland Comptroller's Web Site