Maryland State Tax Extension: Why You Might Not Need to File at All

Let’s be honest: nobody actually likes thinking about taxes in April. If you’re living in the Old Line State and the calendar is creeping closer to the deadline, you’ve probably felt that low-level hum of anxiety. Maybe your documents are a mess, or perhaps your accountant is MIA. Whatever the reason, you're looking for a way out. Specifically, you're looking for a state of maryland tax extension.

The good news? Maryland is actually surprisingly chill about this compared to other states. But there's a catch—there is always a catch when it comes to the Comptroller's office.

The "Automatic" Reality of Your Maryland State Tax Extension

Here is the thing most people miss: if you don’t owe any money, Maryland basically gives you a free pass.

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If you have already requested a federal extension (the famous IRS Form 4868), Maryland grants you an automatic six-month extension to file your state return. You don’t have to mail anything. You don’t have to click a button. You just... wait.

But wait. This is where people get burned.

That "automatic" status only applies to the filing of the paperwork. It does not apply to the payment. If you expect to owe even a single dollar to the state, that money is still due by April 15. If you don't pay by then, the Comptroller starts the clock on interest and penalties faster than you can say "Crab Cakes."

When You Actually Need Form 502E

You only need to deal with the formal state of maryland tax extension paperwork—specifically Form 502E—under a few very specific conditions:

1. You owe Maryland taxes and need to make a payment to avoid penalties.
2. You aren't filing a federal extension but still want more time for your state return.
3. You’re one of those people who just likes having a paper trail for everything (we see you).

If you’re sitting there with a $0 balance or a refund coming your way, and you’ve already told the IRS you’re going to be late, you can literally close this tab and go enjoy a walk by the Inner Harbor. You’re done.

The Math That Bites: Penalties and Interest

Let’s talk about the scary stuff. Maryland’s late payment penalty is 5% of the unpaid tax, and it hits the moment you're a day late. Then there is the interest. For 2026, interest rates on underpayments aren't exactly "friendly."

I once talked to a freelancer in Silver Spring who thought their federal extension covered everything. They didn't realize they owed $1,200 in state taxes. By the time they filed in October, that $1,200 had ballooned with interest and late fees. It's a "stupid tax" that nobody wants to pay.

Expert Tip: If you aren't sure if you owe, use the worksheet on the back of Form 502E. It's basically a mini-tax return. It'll tell you if you're in the clear or if you need to open your wallet.

Businesses Face a Different Set of Rules

If you're running an LLC or a S-Corp, things get a bit more "corporate."

Most pass-through entities (PTEs) in Maryland are looking at a March 15 deadline for their initial filings. If you need a state of maryland tax extension for a business, you're looking at Form 510E. Similar to the individual rules, if you've got a federal extension and don't owe money, you're often covered.

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But check your Annual Report.

The Maryland Department of Assessments and Taxation (SDAT) is a separate beast from the Comptroller. Your Annual Report and Personal Property Tax Return are usually due April 15. You can get a two-month extension for that through the Maryland Business Express website, but you have to ask for it by the April deadline. Don't confuse the two! I've seen business owners get their income tax extension sorted but then get hit with a $300 late fee for the Annual Report.

How to File Your Extension Right Now

If you’ve decided you definitely need to file, you have three real options.

First, the digital way. You can go to the Maryland Comptroller’s website and use their iFile system. It’s clunky, it looks like it was designed in 2004, but it works. You can pay via direct debit or credit card (though they’ll hit you with a convenience fee for cards).

Second, the phone. Yes, you can actually call them. There is a "Tele-File" system. It’s 410-260-7829 if you’re in Central Maryland. It’s sorta nostalgic, like ordering a pizza in the 90s.

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Third, the old-school paper route. Download Form 502E, print it out, and mail it to the Revenue Administration Division in Annapolis. If you're doing this, please, for the love of everything, use certified mail.

Common Misconceptions (What People Get Wrong)

• "An extension gives me more time to pay." Nope. Never. Not in Maryland, not anywhere.
• "I'll just wait for the bill." The bill will include a 25% penalty if you wait too long.
• "The IRS told Maryland I'm late." While they share data, they don't always share it quickly. If you owe money, tell Maryland yourself.

Actionable Next Steps

Don't let the deadline paralyze you. Here is exactly what you should do in the next 20 minutes:

1. Check your 2024 return. Look at your total tax. If your income stayed the same and your withholding hasn't changed, you probably won't owe.
2. Estimate your 2025 liability. If you made way more money this year (congrats!), you probably owe.
3. If you owe: Go to the Maryland Tax Connect portal and make a "payment with extension." This acts as your filing.
4. If you don't owe: File your federal extension and breathe.
5. Mark October 15 on your calendar. That is the absolute "drop-dead" date for your state of maryland tax extension to end. There are no extensions for the extension.

Maryland is pretty reasonable as long as you play by their rules. Pay what you think you owe by April 15, and the rest is just paperwork.