Wednesday, January 12, 2011

Maryland Nonresident Withholding Tax Drops to 6.75% for Individuals

As we discussed here, Maryland imposes upon a nonresident seller an income tax withholding at the time of settlement. For the past several years, the rate has been 7.5% of the net proceeds of the sale.

We have recently learned that Maryland has dropped that rate from 7.5% to 6.75% for individuals (including estates, revocable trusts, etc.). The business tax rate remains the same at 8.25%.

Brokers will want to update their forms, and agents will want to advise their nonresident sellers of this change.