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Small Business Tax

Maryland Residency When Moving to Florida

Domicile, the 183-day rule, county income tax, and the only state with both estate and inheritance taxes

Reviewed by the Fairlight Accounting cross-border tax team — U.S. & Canadian Tax Desks

Maryland taxes residents on worldwide income, plus a county or Baltimore City income tax. You remain a resident if Maryland is your domicile, or if you keep a place of abode there for more than six months and are present 183 days or more. Maryland is the only state with both an estate tax and an inheritance tax.

On this page
  1. The residency tests
  2. Estate and inheritance taxes
  3. After the move
  4. Frequently asked questions
  5. Related guides
  6. Official sources
  7. Next step

The residency tests

TestRule (2026)
DomicileYour permanent home — requires establishing Florida
Statutory residencyPlace of abode for more than six months plus 183 days or more in Maryland
Local taxCounty or Baltimore City income tax on residents (2.25 to 3.30 percent for 2026)

Estate and inheritance taxes

Maryland's estate tax (US$5 million exemption since 2019, not indexed for inflation, plus any unused exemption of a deceased spouse) and its 10 percent inheritance tax on transfers to non-exempt heirs such as nieces, nephews, cousins, and friends (spouses, children and other lineal descendants, parents, grandparents, and siblings are exempt) apply to Maryland domiciliaries and to nonresidents' Maryland real estate and tangible property. Changing domicile matters for estate planning as much as for income tax.

After the move

Maryland-source income stays taxable to a nonresident: wages for work performed in Maryland, rental property there, and business income from Maryland operations. Retirement income from qualified plans, IRAs, and pensions is protected from nonresident taxation by federal law (the pensions after moving guide). The move year is a part-year return (the part-year guide), and the date your domicile changed is the dividing line (the domicile change guide).

Frequently asked questions

How do I stop being a Maryland resident?

Change your domicile to Florida, and if you keep a Maryland home, stay under 183 days.

Does Maryland have a local income tax?

Yes — county or Baltimore City tax on residents (2.25 to 3.30 percent for 2026), which ends with your residency; nonresidents with Maryland-source income pay a 2.25 percent special nonresident tax instead.

Does Maryland tax estates?

Yes — both an estate tax and an inheritance tax, for domiciliaries and on Maryland property.

Is my pension taxable in Maryland after I move?

No — federal law protects nonresidents' retirement income.

Official sources

The Comptroller of Maryland explains: “Briefly stated, an individual is a resident of Maryland if the individual is domiciled in Maryland on the last day of the taxable year or if the individual maintains a place of abode in Maryland for more than six months of the taxable year and is physically present in the State for 183 days or more during the taxable year.” — Comptroller of Maryland, Administrative Release No. 37 — Domicile and Residency, https://www.marylandcomptroller.gov/legal-library/ar-37-sep-21-2009.html

Federal law provides: “No State may impose an income tax on any retirement income of an individual who is not a resident or domiciliary of such State (as determined under the laws of such State).” — U.S. Government Publishing Office, 4 U.S.C. 114 — Limitation on State income taxation of certain pension income (United States Code, 2024 Edition), https://www.govinfo.gov/content/pkg/USCODE-2024-title4/html/USCODE-2024-title4-chap4-sec114.htm

Next step

Fairlight Accounting is a cross-border accounting and tax practice with a U.S. Tax Desk and a Canadian Tax Desk. Our U.S. Tax Desk handles Maryland part-year and nonresident returns and estate-driven domicile planning. See pricing or book a call.

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