2025 Form MW506NRS Maryland Return of Income Tax Withholding for Nonresident Sale of Real Property

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The Maryland Withholding Tax is actually not a sales tax or a transfer tax. It is simply to withhold funds from the sale of real estate to protect Marylands potential share of state income tax due from those out of state people/companies making a profit on the sale of their Maryland real estate.
The 7.75 percent tax must be paid to the Comptroller of Maryland with Form MW506 (Employers Return of Income Tax Withheld). If the payor of the distribution is not currently registered with the Comptroller and has not established a withholding account, the payor can register online.
You are required to submit a copy of this certificate and accompanying attachments to the Compliance Division, Compliance Programs Section, 301 West Preston Street, Baltimore, MD 21201, when received if: 1. You have any reason to believe this certificate is incorrect; 2. The employee claims more than 10 exemptions; 3.
Families who can claim exemptions for themselves, their spouses, and their dependents are most likely to have 3-5 exemptions.
Head of Household with Dependents Youll most likely get a tax refund if you claim no allowances or 1 allowance. If you want to get close to withholding your exact tax obligation, claim 2 allowances for yourself and an allowance for however many dependents you have (so claim 3 allowances if you have one dependent).

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Form 505 and You will need to file a nonresident income tax return to Maryland, using Form 505NR if you have income derived from: tangible property, real or personal, permanently located in Maryland; a business, trade, profession or occupation carried on in Maryland; or, gambling winnings derived from Maryland sources.
MW-507 Instructions Complete all the fields of the general information section (Name, Social Security Number if any, Address, and County). Line 1 - Complete line 1 using the worksheet on page 2. Line 2 - Complete this line only if you want additional taxes taken out of your paycheck. Lines 3-8. Sign and date the form.

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