Maryland Business Personal Property Tax: Rates by County and Municipality
Maryland Business Personal Property Tax: Rates by County and Municipality
Most Maryland business owners think about property tax only when they buy a building. But if your business owns equipment, computers, furniture, tools, or other movable property used in operations, you may owe a separate local tax on that property every year. This is the Maryland business personal property tax, and it is one of the easiest state and local obligations to miss.
This guide explains how the tax is assessed, how county and municipal rates stack, which figures are verified and which you still need to confirm, and why the tax can affect your trader's license. The rate figures come from the State Department of Assessments and Taxation (SDAT) 2025-2026 rate table, revised 12/17/25.
Disclaimer: This article is informational content, not legal or tax advice. Tax rates, filing rules, and deadlines can change. Confirm current figures with SDAT or your county government, and consult a qualified CPA or attorney before making decisions about your business.
How the Maryland Business Personal Property Tax Works
The business personal property tax applies to tangible property a business owns and uses, such as machinery, equipment, furniture, computers, and similar assets. SDAT assesses the value of that property through the Annual Report and Business Personal Property Return, known as Form 1. The tax is then calculated at the county rate plus any municipal rate that applies, per $100 of assessed value.
Three rules matter most:
- The $20,000 threshold. The personal property section of Form 1 applies only when your Maryland business personal property totals $20,000 or more at original cost. Below that amount, you do not complete that section. Measure the total at original cost, not current market value, before you assume you are under the threshold.
- The annual deadline. The Form 1 annual report is due April 15 each year. If you need more time, file an extension request at pprextensions.dat.maryland.gov before the deadline.
- The state-level fee. For LLCs and corporations, the annual report and Form 1 carry a $300 fee, and the annual report is required. The county business personal property tax is a separate, asset-based cost on top of that fee.
Because the tax is based on what you own rather than what you earn, two businesses with similar revenue can owe very different amounts. A business with a large equipment base in a high-rate county can pay far more than a service business with a laptop and a desk. The rate you pay depends on where your business is located and which municipality, if any, applies.
How to Calculate Your Bill
Once you have the assessed value from SDAT, the formula is straightforward:
Tax = (assessed value ÷ 100) × (county rate + municipal rate)
Baltimore City example: a hypothetical assessed value of $250,000 at $5.62 per $100 produces a tax of $14,050. That is $250,000 ÷ 100 = 2,500, then 2,500 × $5.62 = $14,050.
Annapolis example: the Anne Arundel County rate is $2.457 and the Annapolis add-on is $1.94, for a combined $4.397 per $100. On the same hypothetical $250,000 assessed value, the tax is $10,992.50.
The $250,000 figure is for illustration only. SDAT determines the actual assessed value, and you should confirm it against your Form 1 before you calculate a payment.
County Personal Property Rates
The table below lists each county's business personal property rate per $100 of assessed value from the SDAT 2025-2026 rate table, sorted from highest to lowest.
| County | Rate per $100 of assessed value | Notes |
|---|---|---|
| Baltimore City | $5.62 | Highest rate in the table |
| Charles | $2.8525 | |
| Baltimore County | $2.75 | |
| Howard | $2.61 | |
| Carroll | $2.515 | |
| Prince George's | $2.50 | |
| Anne Arundel | $2.457 | |
| Harford | $2.4448 | |
| Washington | $2.32 | |
| Worcester | $2.0375 | |
| Wicomico | $2.0247 | |
| Montgomery | $1.6855 | |
| Frederick | $0 | Utility-property rate of $2.775 is listed separately and is not the business personal property rate |
| Garrett | $0 | Confirm with SDAT or the county before filing |
| Kent | $0 | Confirm with SDAT or the county before filing |
| Queen Anne's | $0 | Confirm with SDAT or the county before filing |
| Talbot | $0 | Confirm with SDAT or the county before filing |
A $0 county rate in the table does not mean a municipality in that county charges nothing. Check the municipal section below, and confirm the complete picture with SDAT or the county. Do not read the utility-property figures for these counties as your business rate.
Municipal Add-Ons
Municipal rates stack on top of the county rate. If your business is located inside one of the municipalities below, the municipal add-on applies in addition to the county rate for that county.
| Municipality | County | County rate | Municipal add-on | Combined rate per $100 |
|---|---|---|---|---|
| Annapolis | Anne Arundel | $2.457 | $1.94 | $4.397 |
| Hagerstown | Washington | $2.32 | $2.643 | $4.963 |
| Cumberland | Allegany | Not in the SDAT table reviewed for this guide | $2.648 | Confirm with SDAT |
| Salisbury | Wicomico | $2.0247 | $2.40 | $4.4247 |
| City of Frederick | Frederick | $0 | $1.55 | $1.55 |
| Easton | Talbot | $0 | $1.30 | $1.30 |
| Ocean City | Worcester | $2.0375 | $1.11 | $3.1475 |
The combined column is simple addition of the county and municipal figures in this table. It is not a separate official rate. Because the City of Frederick and Easton pair a $0 county rate with a municipal add-on, confirm both numbers with SDAT or the county before you budget. Cumberland's combined figure depends on an Allegany County rate that this guide could not verify.
Baltimore City and Baltimore County
Baltimore City has the highest county personal property rate in the table at $5.62 per $100 of assessed value. That is more than double the Baltimore County rate of $2.75. The SDAT table does not list a separate municipal add-on for Baltimore City, so the $5.62 figure is the one to use for planning.
For a business with significant equipment, that gap can change the cost of operating in the city compared with a nearby county. Owners searching for baltimore city personal property tax information are usually weighing exactly that question, whether to locate, expand, or buy equipment inside or outside the city. Run the numbers on your actual asset list before deciding, and treat the rate as something to re-check each year.
Enterprise Zone Tax Credits: Still Unverified
The Maryland Department of Commerce administers enterprise zone tax credits. Whether those credits reach business personal property is not verified for this guide. Do not assume a credit will reduce your personal property bill.
If a credit might apply to your business, confirm directly with the county government or the Department of Commerce. Ask for the specific program rule or statute that covers personal property, and get the answer in writing before you count on any savings.
Current-Year Rates: What We Could Not Confirm
The 2026-2027 SDAT rate table was not located when this guide was researched. The figures above come from the 2025-2026 table, revised 12/17/25. Rates can change from year to year, so do not file or budget using these numbers without checking the current-year rate.
Ask SDAT or your county finance or tax office for the current rate for your location. If the amount matters to your books, request the answer in writing and keep it with your records.
Filing and Payment Checklist
- Build an asset list at original cost. Include every item the business owns and uses in Maryland, with the original purchase cost of each.
- Total the list against the $20,000 threshold. If the total is under $20,000 at original cost, the personal property section of Form 1 does not apply. Keep the list on file anyway.
- If the total is $20,000 or more, gather the assessed value SDAT provides and the current county and municipal rates. Use the tables in this guide as planning estimates only.
- File the Form 1 annual report by April 15. If you need more time, file an extension request at pprextensions.dat.maryland.gov before the deadline.
- Pay the county business personal property tax according to the bill or notice your county issues. Confirm the due date and payment method with the county.
- Clear your trader's license requirements before the license year. The license year runs May 1 through April 30. If your business sells goods, most businesses need a trader's license from the Clerk of the Circuit Court in their county. Growers and manufacturers are exempt. The Clerk cannot issue a trader's license if you owe personal property tax or have missing SDAT filings, and the Clerk also requires a free Sales and Use Tax License from the Comptroller, obtained through the Combined Registration Application.
Missing a filing can create a problem beyond the tax itself. A delinquent personal property account can hold up a trader's license, which can stop sales until it is resolved. Treat the Form 1 as a recurring compliance item, not a one-time task.
Where to Get Help
- SDAT business information: dat.maryland.gov/businesses
- Business entity search: Maryland Business Express entity search
- Maryland Business Express online services: egov.maryland.gov/businessexpress
- Comptroller of Maryland, for sales and use tax and tax registration questions: marylandcomptroller.gov
- Maryland Small Business Development Center Network, for planning and recordkeeping help: marylandsbdc.org
If your equipment base is large, spans more than one county, or includes assets you are unsure how to value, bring your asset list to a qualified CPA. An attorney can help if you disagree with an assessment or are weighing an enterprise zone credit.
Personal property tax is easy to overlook and expensive to get wrong. Build your asset list early, confirm the current-year rate with SDAT or your county, and calendar April 15 before the year gets busy. This guide is informational content, not legal or tax advice.