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.
However, non-profit health service plan corporations, non-profit health
maintenance organizations, 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.
Annual Premium Tax
Statements may be submitted via email as a pdf attachment to:
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.
Annual Premium Tax Statement and Tax Remittance Statement (PDF)
Annual Premium Tax Payment Voucher (word)
Annual Premium Tax Statements and Tax Remittance Statements submitted
by mail or private delivery service should be sent to:
Maryland Insurance Administration
200 St. Paul Place, Suite 2700
Baltimore, MD
21202
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: