Not a tax on leaving. Maryland withholds 8.75% of the net proceeds when a nonresident individual sells Maryland real estate, raised from 8% for sales after June 30, 2025.
In short, current to September 2026
Source: the Patrician.ch board, an original ranking of 100 residence addresses across 48 countries and territories. Tax rates, thresholds and routes are sourced. Cost, safety, schools, sun and beauty are Patrician.ch editorial indices. Figures current to September 2026. Updated . Cite as: Patrician.ch, Maryland exit tax 2026: the 8.75% nonresident withholding, patrician.ch/answers/maryland-exit-tax/, September 2026.
| State | On the move itself | Held at closing when a nonresident sells | Form |
|---|---|---|---|
| California | Nothing. Proposition 40 is on the November 3, 2026 ballot | 3 1/3% of the sale price, or 12.3% of the gain by election | FTB Form 593 |
| New Jersey | Nothing | 10.75% of the gain or 2% of the price, whichever is greater, plus the seller-paid graduated fee of 1% to 3.5% on sales above $1,000,000 | GIT/REP-1 |
| New York | Nothing | 10.9% of the gain | IT-2663 (IT-2664 for a co-op) |
| Maryland | Nothing | 8.75% of the net proceeds, 8.25% for an entity | MW506NRS |
| Massachusetts | Nothing | 4% of the gross price, plus 4% on the part above $1,107,750, on sales of $1,000,000 or more | Form NRW |
Sources: Franchise Tax Board, 2026 instructions for Form 593. N.J.S.A. 54A:8-8 to 8-10, P.L. 2025, c.69. NY Tax Law section 663, 2026 Form IT-2663. Comptroller of Maryland Tax Alert, April 13, 2026. 830 CMR 62B.2.4, from November 1, 2025. Each is a prepayment of income tax, reconciled on the nonresident return for the year of sale, not a separate tax. Exemptions exist in every state, the sale of a principal residence whose gain is excluded being the common one.
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Income tax withheld at settlement when a nonresident sells Maryland real estate: 8.75% of the net proceeds for an individual, 8.25% for an entity.
It is credited on the Maryland nonresident return for the year of sale.
Yes, from 8% to 8.75% for individuals, for sales after June 30, 2025.
The entity rate stayed at 8.25%.
Apply for a certificate of full or partial exemption on Form MW506AE at least 21 days before settlement.
Without it the full 8.75% of net proceeds is held until the return is filed.
Yes.
A 2% tax on net capital gains applies where federal adjusted gross income exceeds $350,000, under the Budget Reconciliation and Financing Act of 2025.
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Tax figures use a simplified marginal model with indicative 2026 brackets for a non-US single filer, ignore social contributions, most deductions, wealth taxes, and treaties, and are not advice. Residence rules change often. Verify before acting.