How to move your company out of Maryland and keep the EIN [step-by-step]

Attorney and CPA Chad D. Cummings presents this provocative overview of Maryland’s 2025 tax legislation, which the Tax Foundation described as the most aggressive package of tax increases in the nation. The changes were made retroactive to January 1, 2025. Maryland ranks 46th on the Tax Foundation’s 2026 State Tax Competitiveness Index after falling past Washington. The individual income tax expanded to ten brackets with a new top state rate of 6.5 percent. County income tax caps rose to 3.3 percent, allowing combined state and local rates to reach 9.8 percent. A two percent capital gains surcharge on federal adjusted gross income above $350,000 produces a combined capital gains rate of 11.8 percent. Section 179 first-year expensing for pass-through businesses is capped at $25,000 against a federal allowance of one million dollars. The corporate rate is 8.25 percent and includes global intangible low-taxed income, converting to net CFC-tested income under recent federal law. A pending bill would raise the top individual rate to 7 percent and impose mandatory worldwide combined reporting, making Maryland the first state to require it. Maryland is the only state that imposes both an estate tax at 16 percent and an inheritance tax at 10 percent. It is also the only state that taxes digital advertising, digital services, and business-to-business technology transactions. Florida and Texas impose neither an estate tax nor an inheritance tax and have no individual income tax. Learn about transferring your company out of Maryland: https://www.cummings.law/redomestication/move-business-out-of-maryland/