How to File LLC Taxes in Maryland (2026)
A Maryland LLC's state tax form depends on its IRS classification. A single-member LLC reports profit on Form 502. A multi-member LLC uses Form 510. An LLC taxed as a corporation files Form 500 or Form 511.
Maryland's graduated rates start at 2% and top out at 6.5% for the current tax year. This page covers Maryland's state tax forms and rates by LLC type. You'll also find the pass-through entity election and the separate annual report Maryland requires.
Quick Summary
- Confirm your Maryland tax bracket every year. Rates and the county add-on change, so check the Comptroller's current schedule before you file.
- File the right state form for your classification. A single-member LLC uses Form 502, a partnership or corporation uses a different one.
- Talk to a CPA before electing PTE or S-corp status. The pass-through entity election only helps if it fits your specific income.
Maryland LLC Tax Summary
Maryland LLC owners file different forms with different state and federal agencies depending on the entity's tax classification. The table below summarizes each form, the agency that receives it, and the current deadline and rate.
| LLC Type | Federal Form | State Form | Filed With | Filing Deadline & Tax Rate |
|---|---|---|---|---|
| Single-member LLC | Form 1040 (Schedule C) | Form 502 | Comptroller of Maryland | April 15; 2%-6.5% graduated |
| Multi-member LLC | Form 1065 (March 15) | Form 510 | Comptroller of Maryland | April 15; members taxed 2%-6.5% |
| S-Corp election | Form 1120-S (March 15) | Form 510 or 511 if electing PTE | Comptroller of Maryland | April 15; PTE tax 8.25% if elected |
| C-Corp election | Form 1120 (April 15) | Form 500 | Comptroller of Maryland | April 15; flat 8.25% |
How Maryland LLCs are taxed
Maryland taxes an LLC the same way the IRS does by default. A single-member LLC is a disregarded entity, so its profit passes through to the owner's personal return. A multi-member LLC is taxed like a partnership unless the members file an election.
An LLC can elect S-corp or C-corp treatment with the IRS, and Maryland follows that choice. The state form mirrors the federal one.
So the form you file depends on which box you checked with the IRS. See how to file LLC taxes in other states for the federal mechanics behind each election.
If you're still forming the entity, choose a registered agent in Maryland first. Then follow the steps to start an LLC in Maryland before you make any tax elections.
Maryland state taxes by LLC type
Here is what each Maryland LLC type owes to Maryland, broken out by federal classification and the exact state form that classification triggers.
1. Single-member LLC (Form 502)
A single-member LLC reports its profit on Schedule C with the IRS. The owner then pays Maryland tax on that same profit through Form 502. The IRS treats the LLC as disregarded, so no separate business return exists.
The owner pays Maryland's graduated state rate on that income, covered in the rate section below, plus tax to the county where they live.
2. Multi-member LLC (Form 510)
A multi-member LLC pays no tax itself. The LLC uses Form 510 with the Comptroller of Maryland and Form 1065 with the IRS. It then issues each member a Schedule K-1.
Each member reports their share on Form 502, or Form 505 if they live outside Maryland. Maryland gives Form 510 until April 15, a full month past the federal Form 1065 deadline of March 15.
3. S-Corp election (Form 510 or 511)
An LLC that elects S-corp status with the IRS still files as a pass-through in Maryland. It uses Form 510, or Form 511 if it also elects the state's pass-through entity tax.
Form 510 or 511 is due April 15 in Maryland, while the federal Form 1120-S deadline falls a month earlier, on March 15.
4. C-Corp election (Form 500)
Electing C-corp status brings Maryland's flat 8.25% corporate rate on top of the 21% federal rate. The LLC files Form 500 with the Comptroller of Maryland.
Maryland gives Form 500 the same due date as the federal return: the 15th day of the fourth month after the tax year closes.
5. Maryland income tax rate for tax year 2026
Maryland taxes pass-through income at 10 graduated brackets. Rates start at 2% on the first $1,000 and top out at 6.5% on income over $1,000,000 for a single filer, or over $1,200,000 filing jointly [1].
Every county and Baltimore City add a local rate on top. For 2026 that runs from 2.25% in Worcester County to 3.30% in Kent and Dorchester counties [2].
Federal taxes Maryland LLC owners pay
Every Maryland LLC owner pays federal self-employment tax of 15.3% on their share of profit, reported on Form 1040. That's on top of federal income tax, which follows the bracket for your filing status and total income.
If your Maryland tax due on income without withholding tops $500, you owe quarterly estimated payments. The due dates are April 15, June 15, September 15 and January 15.
Individual owners pay through Form PV, checking the Estimated Payment/Quarterly box. An LLC taxed as a C-corp uses the corporate estimated voucher instead.
Maryland pass-through entity tax (PTET) election
Maryland lets a pass-through entity pay state tax at the entity level instead of passing the bill to each member.
The election exists because of the federal SALT deduction cap. That cap limits how much state tax an individual can deduct, so paying through the business avoids it.
An electing LLC pays the top individual rate plus the lowest local rate on each individual member's share. A resident entity member's share is taxed at a flat 8.25% instead.
The LLC makes this election with its first payment of the year. That can be an estimated payment or the return itself.
Other Maryland taxes that may apply
A few more Maryland taxes apply on top of income tax, depending on whether your LLC has employees, sells taxable goods or owes local charges.
1. Employer taxes
An LLC with employees owes Maryland unemployment insurance tax on the first $8,500 paid to each worker each year. The Maryland Department of Labor sets the rate. Existing employers pay 0.30% to 7.50%, while new employers pay 1.0% to 2.6%.
2. Sales and use tax
Maryland's 6% sales and use tax applies to LLCs that sell taxable goods or services. That rate is the same statewide, since Maryland adds no local sales tax on top.
Register through Maryland Tax Connect before you make your first taxable sale, then file returns on whatever schedule the Comptroller assigns to your account.
3. Annual Report & Personal Property Return
Every Maryland LLC files a separate Annual Report and Personal Property Return with SDAT, rather than the Comptroller. The fee is $300 and the deadline is April 15.
SDAT grants a free 60-day extension if you request it by the deadline. File it alongside the rest of what an LLC costs in Maryland every year.
File online through the Maryland Business Express portal or by mail to SDAT. For the full requirement, see Maryland's annual report guide.
4. Local income tax
On top of the state bracket in the table above, every Maryland county and Baltimore City add a local income tax. It's called the piggyback tax and applies to the same income you report on your state return.
5. Industry and local taxes
Some industries owe extra Maryland taxes on top of the ones above, including the admissions and amusement tax, the motor fuel tax and the digital advertising gross revenues tax. Check with the Comptroller if your LLC operates in one of these industries.
What is deductible for a Maryland LLC
Maryland lets pass-through owners take the federal Qualified Business Income deduction on their federal return, a federal benefit under Section 199A rather than a state one. Maryland also runs its own state tax credit programs for specific business activities, separate from that federal deduction.
Check the current-year Comptroller instructions before you claim a Maryland state credit, since eligibility and amounts change most years. A CPA familiar with the Comptroller's forms can confirm which ones apply to your LLC.
FAQs
Do Maryland LLCs Pay a Separate Annual Fee?
Yes, Maryland LLCs pay a separate SDAT fee every year, on top of any income tax owed to the Comptroller. Skipping it can forfeit the LLC's right to do business in Maryland, even if the LLC had no income that year.
How Do I Know My Maryland LLC's Tax Classification?
You know your Maryland LLC's tax classification by counting its members, since the IRS defaults a single-member LLC to disregarded status and a multi-member LLC to partnership status. Either can then elect S-corp or C-corp treatment instead.
What Is Maryland's Pass-Through Entity Tax Rate?
Maryland's pass-through entity tax rate blends the top state bracket with the lowest county rate for an individual member, or a flat 8.25% for a resident entity member. Electing this can save members money they would otherwise lose to the federal SALT cap.
Does Maryland Charge LLCs a Separate Corporate Tax?
Yes, Maryland charges LLCs a separate corporate tax once they elect C-corp status with the IRS. The company pays that tax first, then owners pay tax again on any dividends they take home.
References:
- https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/facts/withholding-tax-facts-2026.pdf
- https://dls.maryland.gov/pubs/prod/NoPblTabPDF/2026CountyLocalTaxRates.pdf
