I am a resident of Montgomery county MD, My friend mentioned that I also need to pay for Montgomery county tax on top of the MD state tax, is this true? how do I file?

Most Maryland localities have a local tax in addition to the MD state tax.  The local income tax charged by Montgomery County is 3.2%.  This tax is calculated on line 28 of the MD Form 502.  The local tax is usually withheld, along with your state tax, by your employer.

yes I see a local county tax is also withheld on my pay checks and if I do the sum of MD state tax and county tax is what showing on my W2 as tax withheld, does it mean once I file for MD state tax return, I am all set?

Yes, you're all set.  The Montgomery Co. tax is included on the return.

Thank you very much have a good day

Hi Irene,

Is this tax applicable on long term capital gains on stocks too?

thanks.