Maryland Non-Resident Transfer Tax Increase
Maryland increased the Non-Resident withholding tax, effective January 1, 2008, from 6% to 6.75 % for individuals and from 7 % to 8.25 % for corporations. If you own real property in Maryland but you are not a Maryland resident you are subject to this tax. There are some ways around it but they are few and far between. I sold a $2,000,000 farm a while back when the tax was 6 % and the seller almost had a heart attack when he saw the withholding amount. Maryland increased just about every tax one can think of in the past year. Is Maryland becoming a business "unfriendly" state? Time and the tax man will show us !