Business Taxes

Property Taxes

Frederick County businesses only pay a local effective rate of $.936 on their real property—all other taxes are exempt.

Fiscal 2010 (per $100)	Frederick Co.	Maryland
Real Property Tax Rate	.936	.112
Business Personal Property Tax Rate (taxed on depreciated value)	Exempt	-0-
R&D machinery, equipment, materials and supplies	Exempt	-0-
Manufacturing machinery, tools and equipment	Exempt	-0-
Manufacturing inventories	Exempt	-0-
Warehousing inventories	Exempt	-0-

Income Taxes (2009)

• State Corporate Income Tax: 8.25% of net income attributable to business transacted within Maryland.
• County Corporate Income Tax: None.
• State Personal Income Tax: 2.0%-5.5%. Graduated tax peaking at 5.5% on taxable income over $500,000.
• County Personal Income Tax: 2.96% of taxable income.

Sales and Use Tax

State: 6% on tangible personal property sold at retail or used in Maryland. Does no apply to sales or resale. Does not apply to a manufacturer's purchase of raw materials nor manufacturing machinery and equipment. Tax exemption for R&D firms include: purchases of materials and equipment used in R&D and testing of finished products, and purchases of computer programs for reproduction or incorporation into another computer for resale.

County: None

Additional Taxes

There are some miscellaneous taxes and/or special taxing areas in the County and within some incorporated areas and municipalities.

Workers Compensation

Maryland's workers compensation rates are ranked the fifth lowest in the nation. (Rates vary by occupation.)

Tax Credits

For information about available tax credits and other incentives, please refer to the Web site of the Maryland Department of Business and Economic Development.