Maryland - Failure to provide a credit to local portion of personal income tax for out-of-state income is unconstitutional

myStateTaxOffice

In a 5-2 decision, the Maryland Court of Appeals (the highest court in the state) found that the absence of a credit against the local portion of the state's personal income tax, with respect to a resident's out-of-state pass-through income from an S corporation, was unconstitutional. Pending future appeal, Maryland residents receiving income from out-of-state sources may be able to take a credit on the local portion of their Maryland income tax.



Return to Tax research and insights
State and Local Tax