The Maryland Department of Legislative Services (DLS) has released the 2026 edition of its Guide to Local Government Taxing Authority, a county-by-county reference to the revenue tools available to Maryland’s 23 counties and Baltimore City.
The guide gives county leaders, budget and finance staff, and advocates a detailed look at the taxes, fees, credits, exemptions, and other revenue authorities available in each jurisdiction.
What’s Inside
DLS breaks down local taxing authority for every county and Baltimore City. Each section covers taxes and fees such as property, income, recordation, transfer, hotel, and admissions and amusement, along with other revenue sources authorized for individual jurisdictions.
The guide also details local property tax credits and exemptions for homeowners, seniors, veterans, public safety personnel, historic properties, conservation land, economic development projects, job creation, and other purposes. It includes special taxing districts, development-related taxes and fees, clean energy loan programs, tax administration provisions, and other authorities that differ across counties.
For example, Baltimore County has broad general taxing authority, but State law specifically excludes several tax bases, including income, motor fuel, insurance premiums, and gross receipts. Washington County may impose a transfer tax only if it also imposes a building excise tax, and State law directs the county to use the revenue for specified purposes.
The 2026 guide includes two statewide reference sections for comparing local authority across jurisdictions. One appendix covers statewide optional property tax credits, while another provides a quick reference to local transfer taxes.
Local Revenue Authority in Focus
The guide comes as Maryland takes a closer look at the revenue options available to local governments.
The Task Force to Modernize County and Municipal Revenue Structures held its first meeting in July to examine Maryland’s local revenue structure and the responsibilities counties and municipalities fund. Counties and Baltimore City account for 95.5% of local government spending in Maryland, including funding for public schools, public safety, roads, public health, elections, emergency services, and other core services.
At the same time, local governments have relatively few options for generating significant, broad-based revenue. Property and income taxes provide the two primary sources, and 84% of Marylanders live in a county with a flat or top local income tax rate of at least 3.20%, leaving little room under the State’s 3.30% cap.
That leaves the property tax as the primary option for many counties when new costs emerge. Additional local revenue authority could give county leaders more options to meet local needs without relying so heavily on property taxes.