Will I owe Maryland capital gains/income tax on a primary residence home sale in Florida? I am a new resident of Maryland.
I lived in the house in Florida for over five years as my primary residence, so I know that for federal taxes, I will not owe for capital gains. However, I am not sure if Maryland will tax me on the capital gains.
Maryland conforms to the federal provisions on exclusion of capital gain on the sale of a principal residence. So, whatever gain was excluded from taxation on your federal return will be exempt from taxation on your Maryland state income tax return.
