How is crypto taxed in Maryland?

Maryland crypto tax runs through three layers: the state income tax, a county or Baltimore City income tax, and for high earners a new capital gains surtax. There are no crypto-specific rules, so the starting point is the federal treatment of crypto as property, explained in how crypto is taxed in the US.

Does Maryland tax crypto?

Yes. Line 1 of the 2025 Form 502 is the adjusted gross income from your federal return. Crypto gains from Schedule D and crypto income such as staking or mining rewards are already part of that figure.

The IRS defines what counts. Selling crypto for dollars, trading one coin for another, paying for goods with crypto and receiving it as pay or rewards are taxable. Buying and holding is not, and moving coins between wallets you control is generally not reportable unless a fee is paid in crypto.

How does the Maryland capital gains surtax apply to crypto?

Technical Bulletin 58, issued in December 2025, says Maryland now charges an additional 2% tax on net capital gain included in Maryland adjusted gross income. It applies when federal adjusted gross income is over $350,000, and that threshold is the same for every filing status, so a married couple filing jointly crosses it at a combined $350,000.

Net capital gain uses the federal definition: net long-term capital gain minus any net short-term capital loss. That matters for crypto traders. Gains on coins held more than a year can be hit by the surtax, while short-term gains are not part of net capital gain, although they still count toward the $350,000 income test and are taxed at regular rates.

The bulletin lists exclusions, including a primary home sold for under $1.5 million and assets held in 401(k) plans and IRAs. Crypto held in a qualifying retirement account would fall under that exclusion. Individuals work out the amount on Form 502CG, and it is added to state tax on Form 502. See can you hold crypto in an IRA or 401(k).

What are Maryland's state and county income tax rates on crypto?

Maryland taxes capital gains at its regular rates. The Comptroller's 2025 tax alert says the 5.75% bracket now covers $250,001 to $500,000 of taxable income for single filers. A 6.25% rate applies from $500,001 to $1,000,000 and 6.5% above $1,000,000. For joint filers, the new brackets start at $600,001 and $1,200,001. The standard deduction is $3,350 for single filers and $6,700 for joint filers.

County tax is charged on top. Form 502 applies your local rate to Maryland taxable income. The alert says counties and Baltimore City may set rates up to 3.3% for tax years from 2026, and Kent County is moving from 3.2% to 3.3% for 2026. A Maryland resident with a large long-term crypto gain could therefore face the state rate, the 2% surtax and county tax on the same gain. Other states are compared in do states tax crypto.

Rules differ by state and change often. Check the tax authority or a qualified professional for your own situation.