New Capital Gains Surcharge (Effective July 1, 2025)

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As part of the 2025 Maryland budget, an additional 2% surcharge will be applied to net capital gains for individuals with federal adjusted gross income (AGI) over $350,000.

• This is in addition to ordinary state and local tax - meaning high earners will pay 2% more on top of their marginal rate.
• Exemptions include gains from primary residences (qualifying 250k/$500k federal exclusion), retirement assets, certain small business or IRS Section 179 assets.