Annapolis CPA Services

Military, Marine Business and City Tax Planning in Annapolis

Use Anne Arundel County's graduated local rates

Annapolis residents pay Anne Arundel County's local income tax, which the Comptroller lists in three brackets for 2026. Single, married filing separately and dependent filers pay 2.70% on Maryland taxable income through $50,000, 2.94% from $50,001 through $400,000 and 3.20% above $400,000. Joint, head of household and qualifying surviving spouse filers use thresholds of $75,000 and $480,000. When we project tax on a bonus, business sale or large retirement distribution, we apply the full schedule rather than assuming a single county rate. Comptroller of Maryland income tax rates and local tax rates.

Separate military pay from other Maryland income

Under the Comptroller's Administrative Release 1, a servicemember domiciled in another state and stationed in Maryland does not pay Maryland tax on military pay. Income from tangible property located in Maryland and from a business carried on in Maryland remains taxable. A qualifying civilian spouse's wages are not subject to Maryland tax, and the spouse asserts the withholding exemption by giving the employer Forms MW507 and MW507M each year. The spouse's income from Maryland property and non-service business income, such as partnership income, stays taxable. For Naval Academy households, we document each person's domicile and each income stream before deciding which Maryland returns are needed. Comptroller of Maryland Administrative Release 1, military personnel and civilian spouses.

Budget for city and county taxes inside city limits

Property inside Annapolis is taxed by both the City of Annapolis and Anne Arundel County. For 2026-2027, SDAT lists business personal property rates of $1.94 per $100 for the city plus $1.442 for the county, compared with $2.42 in unincorporated Anne Arundel County. On an owner's principal residence, the homestead credit caps are 10% for city tax and 2% for county tax. SDAT's 2026 Form 1, due April 15, requires the personal property sections when a business owns, leases or uses Maryland personal property with a total original cost of $20,000 or more. For a marina, boat dealer or repair yard, we reconcile the equipment on that return with fixed-asset records and budget both layers of tax. Maryland SDAT tax rates and homestead credit caps.

How we scope the work

We start with the decision or filing you need to complete, the entities and people involved, and the deadline. After reviewing the available records, we identify missing information and propose the services and deliverables. For ongoing work, we establish a close and filing calendar so bookkeeping, tax projections, and owner reporting use consistent information.

For a review or compilation request, bring the lender, grant, board, or regulatory requirement. We confirm the engagement type and applicable professional requirements before accepting the work. Audits of Maryland entities are not currently offered; KAS confirms Maryland CPA firm permit requirements before accepting such engagements. Review and compilation engagements for Maryland entities are accepted where Maryland rules allow.