• Manufacturing machinery, equipment, materials, and supplies are totally exempt by all counties and Baltimore City with the exception of Somerset, Wicomico, and Worcester Counties. Many municipalities also offer exemptions.
• Machinery, equipment, materials, and supplies used primarily in research and development are treated as manufacturing equipment for tax purposes, and are exempt in the same jurisdictions.
• Manufacturing and R&D inventory is exempt in all counties and Baltimore City.  Many municipalities also offer exemptions.
• Commercial inventory for warehouse/distribution is exempt in all major jurisdictions except Wicomico County, which offers a partial exemption.  Many municipalities also offer exemptions.
• Dorchester County is phasing out all other business personal property taxes. The current exemption for property not already fully exempt is 20 percent.
• Customized computer software is exempt. Local jurisdictions may grant a tax credit for "off-the-shelf" computer software.
• In "focus areas" within Maryland's enterprise zones, a 10 year, 80 percent credit is given on the increase in assessment of business personal property.
• Through their discretionary authority, local jurisdictions may grant tax exemptions and credits.

Additional information on business personal property tax exemptions, including municipalities, is available though the Maryland State Department of Assessments and Taxation (DAT).

 

*Frederick, Garrett, Kent, Queen Anne's, and Talbot counties do not impose personal property taxes on ordinary businesses. Only utility operating property is taxed.

Note: In addition to county property taxes, incorporated municipalities levy business personal property taxes. Additional miscellaneous taxes and/or special taxing areas may apply.
Source: Maryland State Department of Assessments and Taxation (DAT).

Depreciation Rates

Category A: 10 percent per year—minimum 25 percent
All property not specifically listed below.

Category B: 20 percent per year—minimum 25 percent
Mainframe computers originally costing $500,000 or more.

Category C: 20 percent per year—minimum 25 percent
Autos (unlicensed), bowling alley equipment, brain scanners, car wash equipment, fax machines, contractor's heavy equipment (tractors, bulldozers), hotel, motel, hospital and nursing home furniture and fixtures (room and lobby), MRI equipment, mobile telephones, model home furnishings, music boxes, outdoor Christmas decorations, outdoor theatre equipment, photocopy equipment, radio and TV transmitting equipment, rental pagers, rental soda fountain equipment, self-service laundry equipment, stevedore equipment, theatre seats, trucks (unlicensed), vending machines (cigarette, candy, soft drink), and x-ray equipment.

Category D: 30 percent per year—minimum 10 percent
Data processing equipment and canned software.

Category E: 33 1/3 percent per year—minimum 25 percent
Blinds, carpets, drapes, shades. The following applies to equipment rental companies only: rental stereo and radio equipment, rental televisions, rental video cassette recorders, and rental video tapes.

Category F: 50 percent per year—minimum 25 percent
Pinball machines, rental tuxedos, rental uniforms, and video games.

Category G: 5 percent per year—minimum 25 percent
Boats, ships, and vessels (over 100 feet). Additional information on business personal property taxes is available through the Maryland State Department of Assessments and Taxation (DAT).