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   The following is a general comparison between Maryland and Delaware taxes, as filed by an individual resident of each state. This information is meant to be used as a guideline for comparing the tax advantages and disadvantages of living in either Maryland or Delaware. While this brochure highlights the most common differences, there may be other areas which could affect your decision. Consult with a tax professional to ensure proper tax planning.

   Below is a table that shows the difference between Maryland and Delaware Income tax for various taxable incomes.

DUE DATES

• Maryland: 15th Day of the 4th month following the close of the tax year.
• Delaware: Last Day of the 4th month following the close of the tax year.

FORMS USED FOR RESIDENT FILING

• Maryland: Form 502
• Delaware: Form 200-01

FILING STATUS

• In both states a taxpayer can file as single, married filing separately, and head of household
• Delaware has the option of married filing combined. In essence, this is the same as if the taxpayers were filing separate but using only one form.
• Maryland has the additional options of filing as a dependent taxpayer and as a qualifying widow.

STANDARD DEDUCTION

LOCAL TAX

• Maryland has a county tax of 20% to 60% of the Maryland Tax computed, depending on the county of residence
• Delaware has no local income taxes.

ITEMIZED DEDUCTIONS

• Delaware residents may itemize on the Delaware return even if they used the standard deduction on the federal return.
• In Maryland, if you use the federal standard deduction you must use the Maryland standard deduction. You may not itemize.

ADDITIONAL DEDUCTIONS

• In both Maryland and Delaware, an additional $1,000 deduction is allowed if you or your spouse are age 65 or over or blind, for a total of up to $2,000 per person. Maryland also allows an additional $1,200 exemption if your dependents are age 65 or over.

PERSONAL EXEMPTIONS

• Maryland residents receive a personal exemption of $1,200 for themselves and their dependents.
• Delaware residents receive a personal exemption (also known as a personal credit) of $100 for each exemption from the federal return plus an additional credit if they are age 60 or over.

EARNED INCOME CREDIT

• Maryland has an earned income credit equal to 50% of the federal credit.
• Delaware has no earned income credit.

OTHER STATE CREDIT

• Both Maryland and Delaware residents receive a credit for taxes paid to another state.
• Maryland Taxpayers receive a credit for the smaller of:
  • Maryland tax due on the difference between the Maryland income and the other state income
  • Other state tax liability or amount paid
• Delaware taxpayers receive a credit for the smaller of:
  • Delaware tax liability
  • Other state tax liability or amount paid
  • Delaware tax liability multiplied by the percentage of other state income to Delaware source income

CHILD CARE CREDIT

• Maryland allows the same credit as on the federal return with a maximum allowable credit of $2,400 for one child and $4,800 for two or more children.
• Delaware allows 50% of the federal child and dependent care credit.

MARYLAND SUBTRACTIONS

• Poverty Level Subtraction - If compensation received is less than the poverty level income, it can be subtracted from the Maryland return.
• Two Income Subtraction - Married taxpayers can subtract up to $1,200 from their Maryland return if both spouses have MD income and file a joint return.