Graphic Designer Taxes in Maryland - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Graphic Designer income taxable in Maryland?

Yes, absolutely. As a graphic designer operating as an independent contractor (or sole proprietor), your income is taxable at both the federal and Maryland state levels. The IRS requires you to report your business income and expenses using Schedule C (Profit or Loss From Business), which is filed with your Form 1040. This schedule determines your net profit (income minus expenses), which is then subject to both income tax and self-employment tax.

Maryland has a graduated income tax system, meaning the tax rate increases as your income increases. You'll use Maryland Form 502 to calculate your state income tax liability. Crucially, Maryland also imposes a local income tax, which varies depending on the county and/or city you reside in. This local tax is reported on the same Form 502, but the rate is determined by your local jurisdiction. Therefore, your total Maryland income tax will be the sum of your state tax and your local tax.

Top Tax Write-offs for Graphic Designers

• Software & Subscriptions: Costs for design software like Adobe Creative Cloud, Affinity Suite, or other tools essential to your work are fully deductible. This includes monthly subscriptions or one-time purchases.
• Computer & Equipment: You can deduct the cost of your computer, monitor, printer, drawing tablet, and other equipment used for your graphic design business. For items with a useful life of more than one year, you'll likely need to depreciate the cost over several years, or potentially utilize Section 179 deduction or bonus depreciation (consult a tax professional for eligibility).
• Mileage & Vehicle Expenses: When you drive for business purposes (client meetings, supply purchases, etc.), you can deduct either the actual expenses (gas, oil, repairs, insurance) or the standard mileage rate. For 2024, the standard mileage rate is 67 cents per mile. Keep a detailed mileage log!
• Home Office Deduction: If you use a portion of your home exclusively and regularly for your graphic design business, you may be able to deduct expenses related to that space (mortgage interest or rent, utilities, insurance, etc.). There's a simplified method available, or you can calculate the deduction based on the square footage of your home office.

The 15.3% Self-Employment Tax Surprise

Many self-employed individuals are surprised by self-employment tax. As an employee, your employer pays half of your Social Security and Medicare taxes. As a self-employed individual, you're responsible for both the employer and employee portions, totaling 15.3%. This is calculated on Schedule SE (Self-Employment Tax) and filed with your Form 1040. However, you only pay self-employment tax on earnings over $400. The good news is that you can deduct one-half of your self-employment tax from your adjusted gross income, which can reduce your overall income tax liability.

Closing Tip for Maryland Residents

Maryland tax laws can be complex, especially with the combination of state and local taxes. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software or working with a qualified tax professional (like myself!) to ensure you're taking all eligible deductions and complying with all applicable regulations. Proper planning can save you significant money and stress during tax season. Don't hesitate to reach out if you have further questions!