Maryland Comptroller Increases Nonresident Real Property Withholding Rate, Limits Tentative Refund Eligibility

The Maryland Comptroller has issued a tax alert announcing changes to withholding requirements on sales of real property by nonresidents and modifications to tentative refund eligibility. Effective July 1, 2025, the withholding rate increased to 8.75 percent for nonresident individuals, while remaining 8.25 percent for nonresident entities. Additionally, nonresidents selling real property for $1,500,000 or more are no longer eligible to request a tentative refund and must file a complete annual return, including Form 502CG if required, to claim any refund. [Md. Comptroller, Tax Alert, 04/13/26]

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