Business Income Tax Payment Information

Payment Methods

Below you will find links for methods to pay your Maryland tax liability. If you are unable to pay the full amount due, you should still file a return and consider making payment arrangements. We will process your return and then send you an income tax notice for the remaining balance due for nonpayment of taxes. See the Tax Compliance section for details regarding collections, payment arrangements, income tax notices, non-payment and missed or late payments.

EFT is the abbreviation for Electronic Funds Transfer, a technique used by the banking system to debit and credit bank accounts within a bank or between banks without the exchange of a paper document. EFT allows you to electronically pay your state withholding tax, motor fuel tax and corporation tax payments. EFT payments are voluntary for these three business tax types unless the payment is for $10,000 or more, in which case payments must be made electronically.

When you choose to use ACH Debit to pay your Maryland withholding tax, motor fuel tax or corporation tax, you are instructing the state to debit (electronically withdrawal) your tax payment from your designated account. Using a telephone, you designate the amount and date of the transaction, and you receive a five-digit reference code as proof of your transaction before you end the call.

When you choose to use ACH Credit to pay your Maryland withholding tax, motor fuel tax or corporation tax, you are instructing your bank to credit (electronically send) your tax payment to the state's bank. Using software from your bank, you designate the amount and date of the transaction.

Beginning August 1, 2013, EFT ACH will no longer be available for sales and use tax payments.

To use the ACH Debit option, complete Sections A and B of Form EFT, Authorization Agreement for Electronic Funds Transfer.

To use the ACH Credit option, you must first contact your bank to determine if your bank offers ACH origination. Your bank must complete Section C of Form EFT to verify that your bank can conform to these standards. You must also complete the contact person information in Section A.

Once you have chosen either the ACH Debit or ACH Credit method and completed the pertinent sections on Form EFT, either fax it to 410-260-6214 or mail it to:

EFT PROGAM
PO BOX 1509
ANNAPOLIS MD 21404-1509

We will process your application within 10 business days after receipt, and you will receive specific instructions for your method of EFT. If you do not receive your instructions within two weeks, please contact the Taxpayer Service Division at 410-260-7980,  Monday - Friday, 8:30 a.m. - 4:30 p.m. EST.  Hearing impaired users call via Maryland relay at 711. 

An originator identification number identifies the State of Maryland to your bank, so your bank knows that it can allow the electronic payment to proceed. If your bank is requesting an originator identification number, contact the Taxpayer Service Division for instructions. We can be reached by telephone at 410-260-7980, Monday through Friday, 8:30 a.m. - 4:30 p.m. EST.

If your bank account has a block or filter on it, you will need to provide your bank with the State of Maryland's Originator Identification Number. An originator identification number identifies the State of Maryland to your bank, so your bank knows that it can allow the electronic payment to proceed. If you need this number, contact taxpayer service for instructions at 410-260-7980, Monday - Friday, 8:30 a.m. - 4:30 p.m. EST.

If the tax payments that you have made using EFT ACH Debit or Credit do not appear to be withdrawn from your bank account within a reasonable amount of time, you may have a security block or filter on your bank account.

First, contact your bank to see if they are blocking the EFT electronic payment request. If your bank account has a block or filter on it, you will need to provide your bank with the State of Maryland's Originator Identification Number.

An originator identification number identifies the State of Maryland to your bank, so your bank knows that it can allow the electronic payment to proceed. If you need this number, contact taxpayer service for instructions at 410-260-7980, Monday - Friday, 8:30 a.m. - 4:30 p.m. EST.

If your bank advises you that they do not have a block or filter on your account, contact taxpayer service for assistance resolving the issue.

No. You must either fax it to 410-260-6214 or mail it to:

EFT PROGRAM
PO BOX 1509
ANNAPOLIS MD 21404-1509

If you are submitting state withholding tax, corporation estimated tax or corporation extension tax payments electronically using EFT ACH Debit or Credit, you do not need to submit a paper Form MW506, Form 500D or Form 500E. You will need to submit an annual corporation return (Form 500) and/or an annual withholding reconciliation return (Form MW508), either electronically or by paper, by the due date of the return.

In addition, if you are submitting state motor fuel tax payments electronically using EFT ACH Debit or Credit, you will need to submit a monthly paper motor fuel report.

Yes, complete a new Form EFT, Authorization Agreement for Electronic Funds Transfer, indicating that it is a revised application by checking the check box titled Revision at the top of the form, and either fax it to 410-260-6214 or mail it to:

EFT PROGRAM
PO BOX 1509
ANNAPOLIS MD 21404-1509

We will process your application within 10 business days after receipt, and you will receive confirmation in writing that we have completed your revision. If you do not receive your confirmation letter within two weeks, please contact us.

If you made an error while submitting an ACH Credit payment, please either fax an explanation of the error to 410-260-6214 or mail it to:

EFT PROGRAM
PO BOX 1509
ANNAPOLIS MD 21404-1509

If you made an error while submitting an EFT ACH Debit payment, review your debit instructions and follow the instructions regarding cancellations. If you cancel the payment, you will receive another five-digit confirmation number. If you are unable to cancel the payment, contact taxpayer service at 410-260-7980, Monday - Friday, 8:30 a.m. - 4:30 p.m. EST.

No. The EFT payment method is not available for those tax types.

When you are using EFT ACH Debit or ACH Credit to pay your state withholding tax, motor fuel tax and corporation tax payments, you must submit the payment before 2:00 p.m. EST on the business day prior to the due date. When you are using the free online bFile or direct debit application to pay and file your state business taxes, you must submit the return and payment before midnight EST on the due date.

You can file a zero return for withholding and sales tax by telephone at 410-260-7225, or online using b-File. You can file a zero return for a corporation extension by telephone at 410-260-7829 or online using the corporation extension application.

The EFT Unit will only discuss your account with the owner, partner, officer or primary EFT contact person that is designated on the Form EFT that you submit. If the primary EFT contact person changes, it is the responsibility of the owner, partner, or officer who originally completed the EFT form, to revise the contact information on Form EFT.

If the primary EFT contact person is a third party vendor, they must send a copy of the Power of Attorney when submitting an EFT application.

No, you do not need to complete Form EFT if you use our free online bFile service to file and pay your withholding or sales tax. You must, however, register online to use bFile, creating your own secure Logon ID Number and Password. See Filing Business Taxes Electronically for more information.

If you are making a payment for withholding or sales tax, you can make your payments online using bFile. Beginning August 1, 2013, EFT is no longer available for sales and use tax payments.

If you are making a corporation or motor fuel tax payment, you must mail a check until your EFT application is processed.

You don't have to write another check to pay your taxes, if you don't want to. With the State of Maryland direct debit program you don't have to worry about late penalties and interest charges or mailing off a check for your tax payment.

When you sign the direct debit authorization document you agree to have a predetermined amount deducted from your checking account on approximately the same day each month. If making smaller, more frequent payments is convenient for you, direct debit payments can be arranged to occur on the 1st, 10th and 21st day of each month or any combination of these days.

The debits stop automatically after all taxes, penalties and interest have been paid. The money will be transferred to the State of Maryland with no additional service charge. We can even arrange for separate debits for each type of eligible tax. Direct Debit can be used to pay sales and use, admissions and amusement, and withholding taxes as well as the tire-recycling fee.

You will receive a regular statement of account that shows the direct debit payment along with any other account activity for each tax for which you are making debit payments.

There are several options for businesses to file and pay Maryland income tax withholding, motor fuel, and corporate income taxes electronically. Electronic payments are voluntary for these three business tax types unless the payment is for $10,000 or more, in which case payments must be made electronically.

Electronic Funds Transfer (EFT)

Businesses may use electronic funds transfers (EFT) to file and pay Maryland income tax withholding, motor fuel, and corporate income taxes. EFT eliminates the need to write checks and mail paper documents, while avoiding postage costs and the potential for lost mail and penalties for late returns. There are two EFT options available: the ACH Credit Option and the ACH Debit Option.

Important Notice: Beginning August 1, 2013, the EFT ACH payment option will no longer be available for sales and use tax. Please see the Sales and Use Tax Facts and Sales and Use Tax Bulletin for more information.

EFT ACH Credit Option

To use the Automated Clearinghouse (ACH) credit option, you must first contact your bank to determine if your bank offers ACH origination. Your bank must complete Section C of Form EFT, Authorization Agreement for Electronic Funds Transfer to verify that your bank can conform to these standards. You must also complete the contact person information in Section A. The primary contact person should be the person who will be initiating the payments as this is the person that we will correspond with regarding the process.

As the most basic form of ACH payment, the CCD (Concentration or Disbursement) format can be processed by all ACH-member banks. ACH credit transactions require you to enter all payment-related data in the ACH standard CCD+ format and XTP addenda record. You will initiate the credit transaction through your bank to the state's bank account for the amount of your tax payment. The costs of the ACH credit transactions are incurred by you and you are responsible for your proof of payment.

EFT ACH Debit Option

The ACH debit option allows you to make a payment using a toll-free 800 number and a password. The payment amount you specify will be transferred to the state's bank account on a specific date. You can also edit or correct your data before completing the transaction. After completing the call, you will be provided with a five-digit reference number as your proof of transaction. Your bank may charge a nominal fee for processing the debit.

The Comptroller is currently converting to the new state depository bank and the ACH Debit option is not available at this time. We are working with Wells Fargo, the new depository bank, to get the new ACH Debit process in place. We apologize for any inconvenience this may cause.

EFT Registration

To register for the EFT ACH Credit or Debit Option, complete Form EFT and either fax it to 410-260-6214 or mail it to:

EFT Program
P.O. Box 549
Annapolis, MD 21404-1509

We will process your application within ten business days and send you specific instructions for your method of EFT. If you do not receive your instructions within two weeks, please contact us at 410-260-7980 or 1-800-638-2937, Monday - Friday, 8:30 a.m. - 4:30 p.m. EST. You may also e-mail us at taxhelp@marylandtaxes.gov.

Additional Information

If you have a security block on your business bank account, or if your bank is requesting an originator identification number in order to allow Maryland to debit your account at your request, contact us for instructions.

You can pay your current Maryland tax amount due by direct debit at the time of filing, if you file online using iFile, bFile or another electronic filing method such as using approved computer software, a tax professional, or IRS Free File. In order to comply with new banking rules, we can only process direct debit payments from bank accounts within the United States.

If you file electronically by the April 15th deadline, and choose to pay electronically you have until April 30th to make the electronic payment (by direct debit or credit card). If you file electronically and pay by check or money order, your payment is due by April 15th. (Personal income tax returns are due by April 15th). If you are filing as fiscal year taxpayer, your return is due on the 15th day of the fourth month following the close of the fiscal year. If any due date falls on a Saturday, Sunday or legal holiday, the return must be filed by the next business day.)

If you have already filed and owe additional tax, you can pay the delinquent amount by direct debit using Individual Bill Pay or Business Bill Pay.

Authorizing Payment

Direct debit payments are processed based on the amount that you authorize. When you select the debit payment option, you will be prompted to enter your bank routing number, your bank account number and the date you wish to have the funds withdrawn.

Partial payments are accepted. However, you must pay the final balance by the filing due date, using a check, money order or credit card. You cannot pay the final balance with another direct debit.

Enter Numbers Carefully

Enter your bank account and routing numbers carefully. We cannot change any of your numbers after you have entered the information, even if you request us to do so. In addition, we cannot cancel your direct debit payment after you have authorized the payment.

We cannot be held responsible for a misdirected direct debit payment or any bank fees that you may incur as a result of entering incorrect account information. Keep in mind that you may also be liable for penalty and interest charges for any late payment.

If we have to make an adjustment or if you amend your return, we will notify you about any change in the refund or any additional amount owed.

Online Bill Pay is an easy, convenient and secure way to pay your Maryland tax liabilities online for free. This system may be used to make bill payments on business taxes using electronic funds withdrawal (direct debit) from a U.S. bank or financial institution. Foreign facilities will not be accepted. You must become a registered user to access this free online service. To register, click on the appropriate link listed below and follow the instructions.

Bill Pay for Businesses

Businesses can also pay their tax liabilities for the following tax types: Maryland Sales and Use, Withholding, Pass-Through Entity, Corporation, S Corporation, Limited Liability Company, Fiduciary, Tire Recycling Fee and the Bay Restoration Fee.

Individuals can pay their Maryland taxes with a credit card. This service applies to taxes owed for the current year or any back year (if you have a bill). If you file your return electronically by April 15, you have until April 30 to make the credit card payment. You can make your individual tax payment online or by telephone through one of the providers listed below.

Electronic Filers

Electronic filers do not need to submit Form PV if you choose to pay by credit card. See more information on electronic filing and paper forms that may need to accompany it.

Estimated Taxes

If you choose to pay your estimated quarterly income taxes with a credit card, either online or by telephone, then you do not need to file Form PV.

General Payment Information



All companies collect a non-refundable, convenience fee for processing the credit card payment; this fee does not go to the state of Maryland.

Do not include the amount of the convenience fee as part of the tax payment.

ONLINE PAYMENTS
Vendor Name Convenience Fee Tax Types Supported Credit Cards Accepted
NICUSA, Inc. 2.49% All Visa, MasterCard, Discover, American Express
PAYMENTS BY TELEPHONE - TOLL FREE 1-800-2PAY-TAX (1-800-272-9829)
Vendor Name Convenience Fee Tax Types Supported Credit Cards Accepted
Official Payments 2.49% All Visa, MasterCard, Discover, American Express
You may also be asked to provide the following information:
  • 13-digit notice number from your tax bill
  • Social Security number or Federal EIC
  • Address with Zip Code
  • Email Address
  • Phone number
  • If you are calling Official Payments to pay by credit card, please use Jurisdiction Code 3000
After your payment is authorized, you will be given a confirmation number that you should keep for your records.

Estimated Corporate Tax Payments

Every corporation that reasonably expects its Maryland taxable income to develop a tax in excess of $1,000 for the tax year or period must make estimated income tax payments with Form 500D-Maryland Declaration of Estimated Corporation Income Tax.

If the corporation is required to make multiple payments it will use Form 500D for each of the additional payments. The Comptroller of Maryland has discontinued the use of Form 500DP.

Do not use this form to remit estimated tax for Form 510 or to remit employer withholding tax.

The total Maryland estimated tax payments must be at least 90% of the tax developed for the current tax year or 110% of the tax developed for the prior tax year. At least 25% of the total estimated tax must be remitted by each of the four installment due dates.

The annualization method for calculating estimated tax is not permitted for corporations. In the case of a short tax period the total estimated tax payment required is the same as for a regular tax year: 90% of the tax developed for the current (short) tax year or 110% of the tax developed for the prior tax year. The minimum estimated tax for each of the installment due dates is the total estimated tax required divided by the number of installment due dates occurring during the short tax year.

Corporate estimated tax quarterly returns must be filed by the 15th day of the month as indicated below for the appropriate quarterly filing period.

Period
Due Date
1st Quarter
15th day of 4th Month
2nd Quarter
15th day of 6th Month
3rd Quarter
15th day of 9th Month
4th Quarter
15th day of 12th Month