Premium Taxes

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.

Fil​ing 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:
Shelly Johnson
Shelly.Johnson1@maryland.gov
410-468-2004
For questions regarding premium tax statements or audits, contact: 
Philip Ermer
Philip.Ermer@maryland.gov
410-468-2153