Under Subtitle 6-102 of the Insurance Article, Annotated Code of Maryland, and Subtitle 5 of Title 31, Code of Maryland Regulations,
insurance companies are subject to a two percent (2%) tax on all new and renewal gross premiums that are derived from or reasonably attributable to insurance business in the State of Maryland. In addition, foreign insurers are subject to retaliatory taxes as delineated in Title 6, Subtitle 3 of the Insurance Article, Annotated Code of Maryland.
Who must file?
In accordance with Section 6-101 of the Insurance Article, Annotated Code of Maryland, persons engaged in the business of writing insurance contracts, surety contracts, guaranty contracts and annuity contracts, for-profit health maintenance organizations, and managed care organizations in the State of Maryland are subject to premium taxes and must file the appropriate quarterly and annual reports with the Maryland Insurance Administration. An attorney-in-fact for a reciprocal insurer, the Maryland Automobile Insurance Fund, and credit indemnity companies are also subject to premium taxes and must file the appropriate quarterly and annual reports. Non-profit Health Maintenance organizations must file a statement and pay an amount equal to the premium tax exemption according to Section 6-121 to the Commissioner to distribute to the General Fund of the State to be used to benefit the Medical Assistance Program. However, non-profit health service plan corporations, and fraternal benefit societies are not subject to the aforementioned premium taxes nor are they subject to the premium tax filing requirements.
Unauthorized insurers are subject to a premium receipts tax of three percent (3%) in accordance with Title 3, Subtitle 3, and Title 4, Subtitle 4 of the Insurance Article, Annotated Code of Maryland, and are not subject to the aforementioned two percent (2%) premium tax and related filing requirements.
Ocean marine
insurance premiums are taxed at the same rate (2%) as other property and casualty premiums for authorized insurers. Regardless of the taxing policy of a company’s home State, ocean marine premiums (which are allocable to Maryland and written during the preceding calendar year) should be included in the total taxable written premiums. Maryland does not separately tax ocean marine premiums. Use the
Basis for Computing Ocean Marine Profits Tax form to calculate retaliatory tax impact.
Filing Due Dates
Entities subject to taxation are required to file a Declaration of Quarterly Estimated Taxes and make quarterly payments if their total tax for the current calendar year is reasonably expected to exceed $1,000. At least 25% of the estimated tax for the full calendar year is to be paid with each quarterly Declaration. The due dates are as follows:
- April 15
- June 15
- September 15
- December 15
Quarterly premium tax filings and check payments must be submitted by mail or private delivery service. Payments mailed or delivered on or before the due date will be considered timely filed. Payments due on a Saturday, Sunday or state or federal holiday will be considered timely filed if mailed the next work day.
ACH payments will be considered timely filed if received on or before the due date. ACH payments due on a Saturday, Sunday or state or federal holiday will be considered timely filed if received the next work day.
Check payments and all quarterly Forms for Declaration of Quarterly Estimated
Taxes should be sent to:
Maryland Insurance Administration
200 St. Paul Place, Suite 2700
Baltimore, MD 21202
On March 15 of each year, entities subject to taxation are required to file with the Administration an Annual Premium Tax Statement for the preceding calendar year. Payment of the total amount of taxes due, after crediting the amount of quarterly estimated taxes paid, is also required by this date. Foreign insurers also report and pay any retaliatory taxes and fees due for the preceding calendar year on this report. Returns due on a due on a Saturday, Sunday or state or federal holiday will be considered timely filed if mailed the next work day.
There are three filing methods provided for the Annual Premium Tax Statements:National Association of Insurance Commissioners OPTins program at
www.optins.org (See
Bulletin 18-05)
Paper filing mailed to:
Maryland Insurance Administration
200 St. Paul Place, Suite 2700
Baltimore, MD 21202
Check payments and the Tax Remittance Statement must be submitted by mail or private delivery service. Payments mailed or delivered on or before March 15 will be considered timely filed. Payments due on a Saturday, Sunday or state or federal holiday will be considered timely filed if mailed the next work day.
ACH payments will be considered timely filed if received on or before March 15. ACH payments due on a Saturday, Sunday or state or federal holiday will be considered timely filed if received the next work day. ACH Tax Remittance Statements may be submitted by
email with the Annual Premium Tax Statement or submitted by mail or private delivery service. Effective December 2, 2019 Maryland began transitioning its banking services. All electronic payments should now be made using the new instructions below.
ACH Credit and Wire Transaction Payment Instructions (
PDF)
Maryland Health Care Access Act of 2018 / Assessment for 2020
(See:
Bulletin 18-16)
For the calendar year 2020-2028, entities subject to the Act are subject to an assessment of 1.00% on certain health
insurance premiums written in Maryland during the immediate preceeding calendar year. The following Assessment Form is to be completed and filed with the Company's Annual Premium Tax Statement along with payment of the assessment amount. Such payment of the assessment amount should be made separately from any annual premium tax amount due.
Assessment Form
INSTRUCTIONS
Assessment
FORM
Penalty and Interest Assessments for Late Payments
Taxes not paid when due, or additional amounts found to be due after an Annual Tax Statement has been filed, are subject to a five percent (5%) penalty plus interest in accordance with Subtitle 6-108 of the Insurance Article, Annotated Code of Maryland. Interest is assessed from the date the tax was due until payment is made at the rate specified in Subtitle 13-604(b)(1) of the Tax-General Article, Annotated Code of Maryland. The imposition of the penalty and interest for underestimation of quarterly
premium taxes is further addressed in the following Bulletin:
Bulletin 00-10
Under Subtitle 6 of the Insurance Article, Annotated Code of Maryland, certain credits may be permitted to offset premium tax obligations. Please refer to
InvestMaryland Premium Tax FAQs for additional guidance.
To confirm receipt of premium tax payments, contact:
For questions regarding premium tax statements or audits, contact:
