Comptroller of Maryland. Serving the People. Peter Franchot, Comptroller
Maryland Taxes
Maryland Taxes: Find all tax-related information and services. Maryland's Money: Resource for transparent financial reporting. Comptroller of Maryland: Information and resources for government agencies, state employees, vendors, and the general public. Media Services: Outlet for agency and Comptroller news. Online Services: Links to all agency online services and applications. Search Engine: Find it Fast! Translate the website to many languages Home Page

Nexus Information for Corporations

The Maryland corporation income tax applies to every Maryland corporation and every other corporation that has a nexus with Maryland. Nexus indicates a taxable connection between a corporation and a taxing authority. If a corporation conducts business activity within Maryland and exceeds the provisions of  U.S.C.A. Title15,  Section 381 of the Interstate Commerce Tax Act (P.L. 86-272), it has a nexus and must file a corporation income tax return, using Form 500. The following list includes some in-state activities which generally create nexus and are outside the protection of U.S.C.A. Title 15 Section 381 (P.L. 86-272):

  • Maintaining a business location in Maryland, including any kind of office.
  • Ownership or use of property in Maryland, real or personal, whether the property is rented office space or equipment used in the manufacture and distribution of goods.
  • Employees soliciting and accepting orders in Maryland.
  • Installation or assembly of the corporation's product.
  • Maintaining a stock of inventory in a public warehouse or placement of the corporation's inventory in the hands of a distributor or other non-employee representative.
  • Sales persons making collections on regular or delinquent accounts.
  • Technical assistance and training with Maryland offered by corporate personnel to purchasers or users of corporate products after the sale.
  • Corporate personnel repairing or replacing faulty or damaged goods.
  • Mobile stores in Maryland (such as trucks with driver-salesmen) from which direct sales are made.

For more information, see Administrative Release No. 2, Interstate Commerce Tax Act - Domestic and Foreign Corporations - Nexus Requirements - Apportionment of Corporate Net Income

For situations involving the Maryland sales and use tax, see Nexus Information for Sales and Use Tax.

Links for Corporations
Business Tax Types
Income Tax
Tax Information
  Captive Real Estate Investment Trusts
  Nexus Information
  Tax Rates
Download for Adobe Reader Homepage