Taxes
Property Taxes
Frederick County businesses only pay a local effective rate of $.936 on their real property -- all other taxes are exempt.
Fiscal 2008 (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 (2008)
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.
