If my parents have capital gains from the sale of a condo on the Fed Form, does the State of Maryland also collect capital gains from the sale as well. Seems like a double hit.
- Richard MLv 71 decade agoFavorite Answer
The Maryland Income Tax is based on the Federal Adjusted Gross income (AGI). Since a captial gain is included in the AGI, then it would be taxed in Maryland as well.
It is no different than the "double hit" you take on any taxable income, such as wages, for both federal and state income tax.