Many Maryland taxpayers face challenges paying their state income taxes entirely and on time. To assist individuals and businesses in resolving outstanding tax liabilities, the Office of the Comptroller of Maryland offers structured payment plan options to help avoid enforced collection actions such as liens, wage garnishments, and bank levies. These programs provide a formal pathway to compliance for newly assessed and overdue tax obligations.
This guide is a comprehensive resource for understanding Maryland’s tax payment plan system. It outlines eligibility requirements, the application process, required documentation, and how to establish an installment agreement through the state’s online services. It also explains maintaining excellent standing under a payment agreement and avoiding default or additional penalties.
Upon reviewing this material, taxpayers will understand their responsibilities under Maryland law, the available payment methods, and how to manage their accounts through the appropriate channels—whether online, by phone, or by mail. The information will support informed decision-making and long-term compliance with state tax obligations.
Maryland taxpayers who can't pay all of their income tax have several options for dealing with their debts over time. The Comptroller of Maryland offers structured solutions that can help with various financial problems. These options include short-term payment plans, long-term installment agreements, the Offer in Compromise program, and the currently non-collectible status.
People who owe taxes and can pay them off within 180 days can set up a short-term payment plan. This choice lets people pay for several months without signing a formal contract. Interest and penalties will increase, but you don't have to pay a setup fee. Taxpayers can apply for a payment over the phone or through the online service center.
Maryland has long-term installment agreements if you need more than 180 days to pay. You can make monthly payments for these plans by direct debit or hand. The setup fee depends on how you pay:
Interest and penalties continue to accrue until the tax is paid in full. Taxpayers must remain current with all future filing and payment obligations.
The Offer in Compromise program may help those who can't pay their full tax bill. This program allows people to pay their Maryland taxes without paying the full amount owed. Before applying, taxpayers must file all required returns and prove they can't pay the full amount, even over time.
The Comptroller's office may grant current non-collectible status to taxpayers experiencing extreme financial hardship. This stops the collection activity for a short time, but it doesn't forgive the debt. Interest and fees will increase, but you don't have to pay immediately. Taxpayers must request this status and provide documentation demonstrating their financial situation and inability to make payments.
In Maryland, taxpayers must meet certain requirements set by the Comptroller's office to set up a tax payment plan. These requirements ensure that applicants follow state filing rules and that only those who really can't pay in full get help.
Applicants must have filed all of their Maryland tax returns for the past six years. You must also file your current tax return for the year in question before you can ask for a payment plan. Taxpayers must have gotten a notice of assessment and not be in the middle of a bankruptcy case. Depending on the program, businesses that want to get help may have to close down.
Maryland offers special considerations for low-income taxpayers. Individuals with an adjusted gross income at or below 250 percent of the federal poverty level may qualify for waived or reduced setup fees on installment agreements. Sometimes, fees already paid may be reimbursed if the taxpayer completes the plan successfully.
Taxpayers must show that they can't pay their tax debt in full to get an Offer in Compromise or currently not collectible status. Income statements, living expenses, and asset details may be some of the documents needed. Before agreeing to any other arrangement, the Comptroller's office looks at the taxpayer's financial situation and ability to pay over time.
Maryland offers several ways to apply for a payment plan online, by phone, and by mail. The most efficient option is through the online service center, which gives users immediate access to the application system and allows them to manage their accounts over time.
To apply online, visit the Individual Payment Agreement page on the Comptroller’s website. Users must either log into the online service center or create a new account if they apply for the first time. Once logged in, taxpayers can start a new online payment agreement, view previous payment arrangements, or convert a manual plan into a direct debit setup.
Before beginning, gather the following information:
The system allows applicants to enter the amount they owe, choose their monthly payment amount, and select a payment due date. The Comptroller's office reviews the submitted request and sends a confirmation via mail or email.
If you can't apply online, call 410-974-2432 or 1-888-674-0016 during regular business hours, Monday through Friday. A representative can help set up the agreement and guide you through the required forms and information.
For mail applications, taxpayers must complete the appropriate request form and send it to the address listed on their assessment notice. To avoid delays, include all supporting documentation with your application.
Depending on the type of payment plan requested, you may need to send:
Once your application is submitted, the Comptroller’s office will review your information to determine whether you qualify for the requested payment plan. Processing time depends on the complexity of your case and the method used to apply.
Most short-term online applications are promptly reviewed and approved. Long-term installment agreements typically take 7 to 10 business days for approval. Phone and mail applications may require 2 to 4 weeks, especially if additional documentation is needed.
Once approved, users can choose how to make payments. Direct debit is the most efficient option, automatically withdrawing payments from a checking account on the date selected during setup. Manual payments can be made online, by phone, or by mailing a check. Always include your account number and tax year when submitting payments to ensure proper crediting.
Taxpayers will receive a confirmation letter or email with payment instructions, dates, and contact information. It is essential to monitor your mail and email regularly and update your address if you move. You must pay on time, even if you don't get notices because of an old address.
Once your Maryland tax payment plan receives approval, maintaining compliance is crucial to prevent default or enforcement actions. Taxpayers must continue to meet all filing and payment obligations throughout their plan.
According to the agreement, monthly payments must be made on time and in full. If you selected direct debit, the payment will be withdrawn automatically from your checking account on the due date. Manual payments can be made through the Maryland online payment system, by phone, or by mail. Always include your account number, tax year, and any identifying details requested in the payment instructions.
Missing one payment does not immediately result in default, but the Comptroller’s office usually sends a notice requesting action. If you cannot make a scheduled payment, please contact the office promptly to discuss your situation and request a modification. Do not ignore the payment or skip future payments without communication, as those actions could jeopardize your agreement.
If your agreement defaults, the remaining balance becomes immediately due. Collection activity may resume, and penalties and interest will continue to accumulate. You may lose eligibility for future payment arrangements, and enforcement actions can be triggered quickly. Staying current with your tax return filings and responding to notices promptly can help prevent these outcomes.
Failure to comply with a tax payment plan in Maryland may lead to serious legal and financial consequences. When a taxpayer defaults, the Comptroller’s office can initiate various enforcement actions.
A tax lien is a legal claim against your property. The state may file a lien in the local circuit court if your balance remains unpaid. A lien can damage your credit score and make it difficult to sell or refinance property until the debt is resolved. Liens remain in effect until you receive the full tax payment, including interest and penalties.
The Comptroller’s office may issue a levy to garnish wages or seize funds from your bank account. If this occurs, your employer or financial institution must legally send a portion of your income or account balance to the state. You will typically receive a notice before enforcement begins, but a lack of response can lead to sudden action.
Maryland may place holds on your driver’s license, vehicle registration, or professional licenses if you fall behind on your tax payments. This can interfere with employment and daily life. To resolve a license hold, contact 855-213-6669 or email mvahold@marylandtaxes.gov with your account details and any requested documentation.
If you’re unable to make any payment toward your tax debt, or if the balance due would cause extreme financial hardship, Maryland offers other relief programs outside of standard installment agreements.
An Offer in Compromise allows qualifying taxpayers to settle their tax debt for less than the full amount owed. This option is available when paying in full would create a severe financial burden. To apply, individuals must submit Form MD 656 and Form MD 433-A, along with supporting financial documentation. The Comptroller’s office will evaluate your income, assets, and ability to pay before accepting or declining your offer.
You may request a non-collectible status if you cannot pay anything now. This status temporarily suspends collection activity without forgiving the debt. To qualify, you must provide a detailed overview of your financial hardship, including income, expenses, and proof of circumstances such as unemployment or medical costs. Once granted, the state will stop collection efforts until your financial situation improves.
While many Maryland taxpayers can manage the payment plan process independently, some situations may require professional guidance. If your financial circumstances are complex or you are unsure how to proceed, working with a qualified tax professional can help you avoid mistakes and improve your chances of approval.
Consider seeking help if you have multiple income sources, significant assets, or past state or federal tax compliance issues. Taxpayers applying for an Offer in Compromise or currently not in collectible status may also benefit from professional representation, especially when submitting detailed financial documentation.
Business owners with payroll or sales tax obligations should be cautious. Business tax cases often involve additional legal and procedural considerations, and the business may need to be closed before qualifying for specific programs. A tax advisor can assist in submitting the correct forms and information in these cases.
Several types of professionals are available to assist with tax payment plans in Maryland. While enrolled agents, licensed by the IRS, represent individuals in tax matters, Certified Public Accountants (CPAs) provide financial planning and tax preparation services. Tax attorneys may be appropriate for legal disputes or enforcement issues.
Low-income taxpayers may qualify for assistance from a Low-Income Taxpayer Clinic (LITC), which offers free or low-cost representation for those who meet income guidelines. These services are beneficial if you’ve received a collection notice or are preparing to appeal a decision from the Comptroller’s office.
Yes, individuals can apply for a tax payment plan in Maryland through the Comptroller’s online service center. To begin, log in to the system or create an account, then follow the instructions to apply for a payment arrangement. Users must enter their account number, select their preferred payment options, and submit any required information. This method is the fastest and most convenient for eligible taxpayers to access and manage their plans.
To complete an online payment agreement, you’ll need your tax return details, account number, estimated payments, and checking or bank account information for direct debit. Be sure to file any required returns before starting. The system may also request your Social Security Number and income tax data. Visit the service center’s website to access the application and review the latest instructions from the Comptroller’s office.
Yes, all taxpayers must continue to file their income tax returns for Maryland by the due date during their payment plan. Failure to file may result in defaulting on the installment agreement and collection actions. To stay compliant, it’s important to meet all filing requirements for each tax year. If you are unsure what returns are required, contact the Comptroller’s office for assistance or visit the official site for up-to-date information.
If you cannot make a scheduled tax payment, please contact the Comptroller’s office at your earliest convenience. The system may allow you to request a change to your agreement or apply for new payment options. Missing payments without notice can result in default, additional penalties, and enforcement actions. Always send payments on time or access the service center to view your status and request help when needed.
To set up direct debit, log in to the online service center and choose the payment method during the application process. Users will enter their checking account number and routing details. Once accepted, payments are automatically withdrawn on the selected date. Direct debit reduces the risk of missed payments and may qualify you for reduced setup fees. Note that the payment plan must be active and in excellent standing for this option to apply.
Yes, but Maryland’s payment plans only apply to state income taxes. You must apply separately through the IRS if you also owe federal tax. Both systems have different eligibility requirements and forms. Taxpayers may qualify for help with each balance due by keeping plans in order. Visit the IRS and Maryland Comptroller websites to learn how to apply for a payment arrangement with each office.
You can contact the Comptroller’s office at 410-974-2432 or by email using the address listed on your notice. The office is open Monday through Friday during regular business hours. You may also visit a service center in person for help. Be sure to have your account number, tax year, and other identifying information ready when you call or send a request so they can assist you quickly and accurately.
Schedule your free, confidential tax relief review today.
Copyright © 2025 Get Tax Relief Now
