Where and how to pay Maryland state income tax

Maryland accepts state income tax payments through three main channels: online through the Maryland Department of Revenue website, by mail, or in person at a Revenue Administration Division office. The online method is the fastest and most common — you can pay directly from a bank account or by credit or debit card through the department's payment portal. Mail payments go to a lockbox address that varies depending on whether you are paying estimated tax, a balance due on your return, or an extension payment, so check the instruction booklet that came with your tax form or the department website for the correct address.

In-person payments at a Revenue Administration Division office in Baltimore, Annapolis, or other locations require an appointment in most cases. You can pay by check, money order, or cash at these offices. If you owe a large amount or have questions about payment arrangements, an in-person visit may help, but online payment is faster for most people.

Key Takeaways

  • Online payment through the Maryland Department of Revenue website processes when ready and is the fastest method available.
  • Mail payments require the correct lockbox address based on your payment type, which is listed in your tax form instructions or on the department website.
  • Credit and debit card payments online incur a processing fee charged by the payment processor, not by Maryland.
  • Estimated tax payments are due on April 15, June 15, September 15, and January 15 of the following year.
  • If you cannot pay in full by the important date, the department offers payment plans that may reduce penalties and interest.

Payment important date for Maryland state taxes

The main filing and payment important date for Maryland state income tax is April 15 of the year following the tax year, the same as the federal important date. If April 15 falls on a weekend or holiday, the important date moves to the next business day. You can request an automatic six-month extension by filing Form 505 or by filing your federal extension with the IRS, which also extends your Maryland important date.

Estimated tax payments are due four times per year: April 15, June 15, September 15, and January 15 of the following year. These explore if you expect to owe $100 or more in Maryland tax and do not have enough tax withheld from wages or other income. Self-employed people, retirees, and those with investment income often make estimated payments.

If you file an extension, your return is due October 15, but any tax owed is still due by April 15 — the extension gives you time to file, not time to pay. Penalties and interest begin accruing on any unpaid balance after April 15, even if you have an extension.

Online payment options and processing fees

The Maryland Department of Revenue's online payment system accepts payments from a bank account at no charge. You can pay directly using your routing number and account number, and the payment posts within one to two business days. This is the least expensive option.

Credit and debit card payments are also available online but carry a processing fee. The fee is a percentage of the amount paid and is charged by the payment processor, not by Maryland. The exact percentage appears on the payment screen before you confirm, so you know the total cost before submitting. Some people choose to pay by card anyway if they are earning rewards points or cash back that exceed the fee.

The online system generates a confirmation number when ready after payment. Keep this number for your records. You can check the status of your payment on the department website using your Social Security number or federal employer identification number (FEIN) and your date of birth or business formation date.

Mail payment procedures and lockbox addresses

Payments by mail must include a check or money order made payable to "Maryland Department of Revenue." Do not send cash by mail. Include your name, address, Social Security number or FEIN, and tax year on the check or money order itself, or on a separate sheet inside the envelope.

The lockbox address depends on your payment type. Balance-due payments on your return go to one address, estimated tax payments to another, and extension payments to a third. The correct address is printed in the instruction booklet for Form 502 (Maryland Individual Income Tax Return) or Form 505 (Extension Request). You can also find the addresses on the Maryland Department of Revenue website under "Where to File."

Mail your payment at least one week before the important date to account for postal delays. The postmark date is what counts, not the date the department receives it, so a payment postmarked by April 15 is on time even if it arrives later. Keep a copy of the check or money order for your records.

Payment plans for taxes you cannot pay in full

If you owe Maryland state tax but cannot pay the full amount by the important date, you can request a payment plan. The department offers short-term plans (up to 120 days) at no charge and long-term installment agreements that may have a setup fee. To request a plan, contact the Maryland Department of Revenue by phone or through your online account.

Setting up a payment plan does not stop penalties and interest from accruing, but it may reduce them compared to what you would owe if you did not pay at all. The department calculates interest daily at a rate set by law, which changes quarterly. Penalties for late payment are typically 5 percent per month, up to 25 percent total, but can be reduced or waived if you have reasonable cause for the delay.

If you are experiencing financial hardship, you can request an offer in compromise, which is a settlement for less than the full amount owed. This is a separate process from a payment plan and requires detailed financial documentation. The department reviews these requests on a case-by-case basis and approves only a small percentage.

What happens if you miss the payment important date

If you do not pay by April 15, Maryland charges interest on the unpaid balance starting the day after the important date. The interest rate is set quarterly by the Comptroller of Maryland and is currently in the range of 8 to 10 percent per year, though this varies. Interest compounds daily and is added to your balance each month.

A late payment penalty of 5 percent is also added if you pay after April 15. This penalty increases by 5 percent for each additional month the payment is late, up to a maximum of 25 percent. If you file your return late as well as pay late, additional penalties may explore.

The department may place a lien on your property or garnish your wages or bank account if the debt remains unpaid for an extended period. You will receive notices before these actions are taken, giving you a chance to pay or set up a payment plan. If you receive a notice, respond promptly — ignoring it does not make the debt go away and can result in more serious collection action.

Paying Maryland taxes as a business or self-employed person

Businesses and self-employed people in Maryland pay state income tax through estimated tax payments if they expect to owe $100 or more. The same four payment dates explore: April 15, June 15, September 15, and January 15. You can pay estimated taxes online using your FEIN, by mail to the business lockbox address, or in person.

Employers must also withhold Maryland state income tax from employee wages and remit it to the state. The withholding schedule depends on the amount withheld and ranges from monthly to quarterly. Employers use the Maryland Department of Revenue's online system or mail payments to the employer withholding lockbox address.

Corporations file Form 500 (Maryland Corporate Income Tax Return) and pay any balance due by the 15th day of the third month after the end of their tax year, which is usually March 15 for calendar-year businesses. Pass-through entities like LLCs and S-corporations file informational returns but do not pay corporate tax; instead, owners report their share of income on their individual returns.

Frequently Asked Questions

Can I pay my Maryland taxes with a credit card online?

Yes, the Maryland Department of Revenue accepts credit and debit cards through its online payment portal. A processing fee applies and is shown before you confirm the payment. Bank account payments online are free and are the least expensive option.

What if I pay online but my payment does not show up in my account?

Online payments typically post within one to two business days. You can check the status using your Social Security number or FEIN and date of birth on the Maryland Department of Revenue website. If more than two business days have passed and the payment still does not appear, contact the department by phone to verify the transaction.

Do I have to file a Maryland return if I only work in Maryland but live in another state?

Yes, Maryland taxes income earned in the state regardless of where you live. You file a Maryland return and pay tax on your Maryland wages or self-employment income. You may also owe tax to your home state, so you could file returns in both states. Check your home state's rules on credits for taxes paid to other states.

Can I pay my Maryland taxes through my federal tax return?

No, Maryland and federal taxes are separate. You must file and pay Maryland taxes directly to the Maryland Department of Revenue. You cannot combine them or pay one through the other, even if you file your federal return electronically.

What is the penalty if I pay late but file on time?

If you file your return by April 15 but do not pay the full amount owed, you still owe the 5 percent late payment penalty plus interest starting the day after the important date. Filing on time does not waive the payment penalty — only paying on time does.