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 2011 (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 (2012)

• 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.