Taxes in Baltimore metro area (Columbia: to rent, insurance, schools)

[nontradstudent]

Can anyone tell me how the tax system works there? I know there is state income tax. Is there also local (city/municipality) income tax as well? Are the schools funded through property taxes? Is there anything else I should know about taxes when I am looking for a place to rent?

I have seen some mention that taxes are higher in Columbia, but I couldn't tell if they were property or income taxes.

[barante]

Death and taxes are everywhere. But if you are renting, you mostly need to avoid death.

[starr71]

I don't know if this helps, but Baltimore City is its own municipality, so you pay a city tax as well as a state tax. In general, taxes (as well as insurance) in Baltimore city are among the highest in the state.

[rudy_d]

MD's state tax rate is a flat 4.75% (although that may change if the governor's progressive income tax rates go into effect). The local income tax is a "piggyback" tax that varies by county. For income taxes, Baltimore City is actually in line or lower than the surrounding counties. Here's a list of the rates:

Maryland State Income Tax Information (broken link)

Property taxes are done in a similar fashion, although the city has a much higher rate than nearby counties (although property values tend to be lower). Howard County has some of the highest property values in the state, so the actual tax paid is probably pretty high regardless of the rate, but that probably doesn't matter if you're renting.