Updated October 8, 2026. Quick answer: No. Maryland is a common law state. At divorce, Family Law section 8-205 lets the court “grant a monetary award, or both, as an adjustment of the equities” for marital property, and at death a surviving spouse can elect a one-third or one-half share. The IRS lists nine community property states.
Maryland community property at a glance
| Item | What the documents say |
|---|---|
| Regime | Common law |
| At divorce | The court identifies marital property and may grant a monetary award or transfer an interest (Family Law 8-201, 8-205) |
| At a spouse’s death | An elective share of one-third of the estate subject to election if there is surviving issue, one-half if there is none (Estates and Trusts 3-403) |
| Federal basis at the first death | A qualified joint interest between spouses: one-half is included in the estate and steps up |
| Source | Maryland General Assembly; IRS Publications 551 and 555; 26 U.S.C. 1014 |
What the Maryland statutes say
Maryland separates marital property from the rest by how it was acquired, not by title. Section 8-201 defines marital property as property “however titled, acquired by 1 or both parties during the marriage”, with exceptions the section lists.
At divorce in Maryland
Maryland’s remedy is a monetary award or a transfer of an interest, aimed at “a fair and equitable monetary award or transfer of an interest” after the court weighs the factors in section 8-205.
At a spouse’s death in Maryland
Estates and Trusts 3-403 fixes the share by whether the decedent left surviving issue: “the elective share shall equal one-third of the value of the estate” if there is surviving issue, and “the elective share shall equal one-half of the value of the estate” if there is none. The share is reduced by the benefits the survivor already receives, as the section states.
What it does to basis when the first spouse dies
Because Maryland is not on the IRS’s list of community property states, a couple’s basis at the first death depends on title. IRS Publication 551 says to “Include one-half of the value of a qualified joint interest” in the decedent’s gross estate, and the survivor’s basis is the cost of the survivor’s own half plus the basis in the half inherited. Property in the decedent’s name alone is different: 26 U.S.C. 1014(a) gives the heir a basis equal to the property’s fair market value at the date of the decedent’s death.
Computed illustration, not tax advice: suppose a Maryland couple paid $100,000 for shares held as a qualified joint interest, and the shares are worth $400,000 when one spouse dies. The survivor’s basis is the total of two halves: $200,000 for the half that steps up plus $50,000 as the cost of the survivor’s own half, which makes $250,000. A sale at $400,000 would then show a gain of $150,000. In a community property state the same facts would give a basis of the whole $400,000. CMG’s common law step-up page goes through the difference.
What the documents do not say
- The documents read do not state a rule for a couple who moved to Maryland.
Common mistakes
- Assuming the fraction is the same for every surviving spouse; Maryland’s turns on whether the decedent left issue.
- Assuming the answer in this state settles it for a couple who move; the rules depend on the state where the spouses are domiciled and, for property in a trust, on the trust.
Related: why only half steps up in a common law state, Maryland retirement taxes, and Maryland probate cost.
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Answer againSources
- Family Law 8-201 Definitions, Annotated Code of Maryland: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gfl§ion=8-201&enactments=false
- Family Law 8-205 Monetary award, Annotated Code of Maryland: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gfl§ion=8-205&enactments=false
- Estates and Trusts 3-403 Elective share, Annotated Code of Maryland: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=get§ion=3-403&enactments=false
- IRS Publication 551, Basis of Assets (December 2025): https://www.irs.gov/pub/irs-pdf/p551.pdf
- 26 U.S.C. 1014, Basis of property acquired from a decedent (United States Code, 2024 Edition): https://www.govinfo.gov/link/uscode/26/1014?link-type=html
Sources: the primary documents linked above, read on October 8, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.