Maryland collected $30.9 billion in taxes in 2024, and $213.4 million of that came from estate and gift taxes, a decrease of 21.4% compared to the previous year. These numbers sparked criticism among Maryland residents, as some believe the state’s taxes may be too high, prompting capital flight to other locations.
According to the U.S. Census Bureau’s Annual Survey of State Government Tax Collections, the recent numbers represent a decrease from the $271.6 million collected in 2023. An estate tax is a tax on the total value of a person’s estate (including real estate, money, financial investments, etc.) at the time of death. Gift taxes, on the other hand, apply to money or assets given to others.
Maryland Reacts to Gift Tax Revenue Drop by 21.4%
The numbers sparked discussion on Reddit’s r/Maryland, as users interpreted the data in different ways. Many criticized tax increases as the reason the value has gone down, saying, “I’m not sure why some are surprised. There’s data to suggest that some state policies are causing flight of wealth. This can all be alleviated by moving this beyond the state level. Wealth needs to be taxed at a federal level and redistributed (back to states?), and the IRS needs teeth to enforce this.”
Others claimed that this was “the problem with raising a tax like this,” arguing that it would simply lead wealthier people to invest elsewhere and would not benefit residents.
The idea that taxes were too high in Maryland was contested by some locals. One of them said, “I’m tired of people pretending Maryland is a high-tax state. It simply isn’t. It’s very middle-of-the-road. 6% sales tax is low compared to many red states. Our income tax is even lower than that of many red states.” Someone responded, “Maryland IS a high tax state. It has the 7th highest individual tax burden of all states. The income tax burden is the 3rd highest in the country.”
A third group of people, however, was not particularly concerned about the decrease. “This variance is, after all, to be expected – there are only so many rich people who can die every year,” one user argued, suggesting that if fewer wealthy people died, revenue from estate taxes would naturally be lower.
The debate over taxation in Maryland continues, as different sides argue that the government should either increase or decrease taxes on the wealthy to fund the state’s programs.
