Local Income Tax: Sluggish Growth Continues

In the latest distribution of local income taxes, as reported by the Office of the Comptroller, the June withholding of county income taxes continues to grow at a modest pace, just over 3% from the prior year. The distributions of income tax are complicated by various factors (interest and penalties, reserve accounting, and reconciliation of prior estimates) but the core movement in the income tax supports the impression of Maryland’s economy and workforce remaining in a modest growth period.

From the Comptroller’s message to county finance officers and stakeholders:

Withholding attributable to June is expected to be $876.0 million, 3.1% greater than last June’s projection. After accounting for the unallocated and refund reserve percentages as well as the local tax percentage and the cost of administration, the June withholding distribution increases 1.6% to $250.4 million. The reconciling distribution will be made in August, when actual collections for the entire second quarter (April/May and June) are known.


Michael Sanderson

Executive Director Maryland Association of Counties