Maryland has state income taxes plus mandatory county “piggyback” taxes — meaning you’ll pay both. Here’s your complete guide.
Maryland Tax Overview
| Tax Type | Rate | Notes |
|---|---|---|
| State Income Tax | 2%-5.75% | Progressive brackets |
| County Income Tax | 2.25%-3.2% | Mandatory additional tax |
| Combined Income Tax | 4.25%-8.95% | State + county |
| Sales Tax | 6% | Some categories higher |
| Property Tax | 1.07% avg | Varies by county |
Maryland State Income Tax Brackets 2026
Maryland uses a progressive state income tax that tops out at 5.75%, but the real sting comes from mandatory county taxes on top. Most populated counties add 3.2%, bringing the combined top rate to 8.95%. This double-layer system makes Maryland one of the highest-taxed states in the Mid-Atlantic region for wage earners.
Single Filers
| Taxable Income | Tax Rate |
|---|---|
| $0 - $1,000 | 2.00% |
| $1,000 - $2,000 | 3.00% |
| $2,000 - $3,000 | 4.00% |
| $3,000 - $100,000 | 4.75% |
| $100,000 - $125,000 | 5.00% |
| $125,000 - $150,000 | 5.25% |
| $150,000 - $250,000 | 5.50% |
| Over $250,000 | 5.75% |
Married Filing Jointly
| Taxable Income | Tax Rate |
|---|---|
| $0 - $1,000 | 2.00% |
| $1,000 - $2,000 | 3.00% |
| $2,000 - $3,000 | 4.00% |
| $3,000 - $150,000 | 4.75% |
| $150,000 - $175,000 | 5.00% |
| $175,000 - $225,000 | 5.25% |
| $225,000 - $300,000 | 5.50% |
| Over $300,000 | 5.75% |
County “Piggyback” Tax Rates
Maryland is unique in that every county levies its own income tax as a percentage of your state tax liability. There’s no escaping it — this isn’t optional. Most populous counties (Montgomery, Howard, Prince George’s, Baltimore County) charge the maximum 3.2%, while only a few smaller counties like Worcester offer slightly lower rates at 2.25%.
Every Maryland county adds its own income tax on top of state rates:
| County/City | Local Rate | Combined Max |
|---|---|---|
| Baltimore City | 3.20% | 8.95% |
| Baltimore County | 3.20% | 8.95% |
| Montgomery | 3.20% | 8.95% |
| Prince George’s | 3.20% | 8.95% |
| Anne Arundel | 2.81% | 8.56% |
| Howard | 3.20% | 8.95% |
| Frederick | 2.96% | 8.71% |
| Harford | 3.06% | 8.81% |
| Carroll | 3.05% | 8.80% |
| Worcester | 2.25% | 8.00% |
Most populous counties charge the maximum 3.2%.
Maryland Total Tax Calculator
| Salary (Montgomery Co.) | State Tax | County Tax | Total MD Tax |
|---|---|---|---|
| $50,000 | $2,150 | $1,600 | $3,750 |
| $75,000 | $3,400 | $2,400 | $5,800 |
| $100,000 | $4,525 | $3,200 | $7,725 |
| $150,000 | $7,150 | $4,800 | $11,950 |
| $200,000 | $9,975 | $6,400 | $16,375 |
| $250,000 | $12,725 | $8,000 | $20,725 |
Effective rates range from 7.5% (lower income) to 8.3% (higher income) in 3.2% counties.
Maryland vs. Neighboring States
Maryland’s combined income tax burden is among the highest in the region. Virginia’s top rate of 5.75% includes no local income tax, making it significantly cheaper for high earners. Pennsylvania’s flat 3.07% rate is even more attractive, though its higher property taxes offset some of the savings. DC competes closely at moderate incomes but becomes more expensive than Maryland at very high income levels.
| State | Top Income Tax | Sales Tax | Property Tax |
|---|---|---|---|
| Maryland | 8.95% combined | 6% | 1.07% |
| Virginia | 5.75% | 5.3% | 0.87% |
| DC | 10.75% | 6% | 0.56% |
| Pennsylvania | 3.07% | 6% | 1.53% |
| Delaware | 6.6% | 0% | 0.61% |
DC vs. Maryland for High Earners
| Income | DC Tax | MD Tax (MoCo) | Difference |
|---|---|---|---|
| $150K | $10,350 | $11,950 | MD $1,600 higher |
| $250K | $19,900 | $20,725 | MD $825 higher |
| $500K | $46,400 | $43,975 | DC $2,425 higher |
DC has higher rates at very high incomes; Maryland is higher at moderate-high incomes.
Maryland Standard Deduction
| Filing Status | Minimum | Maximum |
|---|---|---|
| Single | $1,800 | $2,550 |
| Married Filing Jointly | $3,600 | $5,100 |
Maryland’s standard deduction is 15% of AGI, within the min/max limits.
Maryland Personal Exemptions
| Filing Status | Exemption |
|---|---|
| Single | $3,200 |
| Married (each spouse) | $3,200 |
| Dependents | $3,200 each |
These exemptions reduce taxable income beyond the standard deduction.
Maryland Tax Credits
| Credit | Amount |
|---|---|
| Child and Dependent Care | Up to 32.5% of federal credit |
| Earned Income Credit | 45% of federal EITC |
| Student Loan Debt Relief | Up to $5,000 |
| Hometown Heroes Homeownership | Up to $10,000 |
| Preservation and Conservation | Up to $5,000 |
Maryland EITC
Maryland’s Earned Income Tax Credit is 45% of the federal EITC — one of the most generous state EITCs.
| Federal EITC | Maryland EITC |
|---|---|
| $2,000 | $900 |
| $4,000 | $1,800 |
| $7,430 (max) | $3,344 |
Property Tax in Maryland
| County | Effective Rate | On $500K Home |
|---|---|---|
| Baltimore City | 2.25% | $11,250/year |
| Montgomery | 0.99% | $4,950/year |
| Howard | 1.01% | $5,050/year |
| Anne Arundel | 0.94% | $4,700/year |
| Prince George’s | 1.34% | $6,700/year |
| Baltimore County | 1.10% | $5,500/year |
| Frederick | 1.05% | $5,250/year |
Baltimore City has extremely high property taxes. Montgomery and Howard counties are more moderate.
Homestead Tax Credit
Maryland limits property tax increases to 10% per year on owner-occupied homes (some counties cap at lower amounts).
Retirement Income in Maryland
| Income Type | State Tax |
|---|---|
| Social Security | Exempt (under income limits) |
| Federal pensions | Partially exempt (up to $36,200) |
| Military pensions | Fully exempt |
| 401(k)/IRA (age 65+) | Up to $36,200 exempt |
| Private pensions (65+) | Up to $36,200 exempt |
Maryland is relatively friendly to retirees with the pension exemption.
Working in DC/VA, Living in Maryland
Maryland has reciprocity agreements with DC, Virginia, West Virginia, and Pennsylvania:
- You pay Maryland tax on wages earned in these states
- Your employer withholds based on residence, not work state
- You only file in Maryland (for wages)
Commuter Example
If you live in Montgomery County, MD and work in DC:
- Pay Maryland state tax (5.75% max)
- Pay Montgomery County tax (3.2%)
- Total: up to 8.95%
- (vs. DC’s 10.75% if you lived in DC)
Maryland Tax Worked Example: $75,000 Salary in Montgomery County
Montgomery County adds 3.2% on top of state tax — here’s what a $75,000 earner actually pays in 2026.
| Amount | |
|---|---|
| Gross income | $75,000 |
| Standard deduction (MD) | -$2,500 |
| Maryland taxable income | $72,500 |
| State income tax | ~$3,039 |
| Montgomery County tax (3.2%) | $2,320 |
| Total MD + county tax | $5,359 |
| Combined effective rate | 7.1% |
Compare this to a similarly paid worker in Virginia (top rate 5.75%): they’d owe roughly $3,800 on the same income — about $1,500 less per year.
Maryland Retirement Income Tax Rules
Maryland taxes most retirement income, but provides meaningful exemptions for older residents.
| Income Type | Maryland Treatment |
|---|---|
| Social Security | Exempt (Maryland does not tax SS) |
| Military pension | Fully exempt |
| Federal/state pension (under 65) | Up to $3,400 exempt |
| Federal/state pension (age 65+) | Up to $36,200 exempt |
| 401(k) / IRA withdrawals | Fully taxable (no special exemption) |
| Private pension | Up to $36,200 exempt (age 65+) |
| Retirement income credit | Up to $1,000 for qualifying low-income retirees |
Key takeaway for retirees: Maryland’s Social Security exemption is a major benefit — retirees in many other states pay state income tax on up to 85% of SS benefits. Maryland also offers a substantial pension exemption for those 65+, making it more retirement-friendly than its top tax rate suggests. The biggest exposure is 401(k) and IRA withdrawals, which are fully taxable as ordinary income.
Filing Maryland Taxes
| Form | Who Files |
|---|---|
| Form 502 | Maryland residents |
| Form 505 | Maryland nonresidents |
| Form 502B | Dependents info |
| MW507 | Withholding certificate (employer) |
Filing Deadline
April 15 — same as federal. Automatic extension available to October 15.
Maryland Earned Income Tax Credit (EITC)
Maryland offers its own state EITC on top of the federal credit — one of the more generous state supplements in the country.
| Filing Status | Maryland EITC Rate |
|---|---|
| Refundable credit | 45% of federal EITC |
| Non-refundable portion | Additional 25% |
| Local EITC | Additional 50% of state credit |
Example: A single parent with two children claiming $4,000 in federal EITC receives approximately $1,800 in Maryland state EITC and an additional local credit — reducing their tax bill significantly or generating a refund even with zero income tax withheld.
To claim the Maryland EITC, file Form 502 and complete the EITC worksheet. Maryland also offers a Child and Dependent Care Tax Credit worth up to 32.5% of the federal credit amount.
Maryland Tax Planning Tips
- Max retirement accounts — Reduces state + county tax at combined 8.95%
- Consider county differences — Worcester County is 2.25% vs. most at 3.2%
- Claim pension exemption — $36,200 exempt for those 65+
- Use MD 529 deduction — Up to $2,500/account/year
- Track itemizable expenses — MD allows itemizing similar to federal
- File early — Maryland refunds take 4-6 weeks typically
Military in Maryland
| Benefit | Details |
|---|---|
| Military pension | Fully exempt |
| Active duty pay (non-MD stationed) | Exempt |
| Active duty pay (MD stationed) | Taxable |
| Military spouse income | May be exempt if spouse is active duty |
Maryland vs. Virginia Comparison
For DC-area workers choosing where to live:
| Factor | Maryland | Virginia |
|---|---|---|
| Top income tax | 8.95% (with county) | 5.75% |
| Sales tax | 6% | 5.3% |
| Property tax (avg) | 1.07% | 0.87% |
| Gas tax | $0.47/gal | $0.28/gal |
| Better for | Lower incomes (EITC) | Higher incomes |
Virginia is generally more tax-friendly for high earners due to lower combined rates. That said, Maryland’s more generous retirement exemptions and robust EITC make it a better deal for lower-income residents and retirees drawing Social Security.
Bottom Line
Maryland’s combined state + county income tax reaches up to 8.95% in most populous counties — among the highest in the nation. However, Maryland offers generous exemptions for retirees, military, and low-income earners. Property taxes vary significantly by county, with Baltimore City being particularly high. For DC-area workers, Virginia typically offers lower overall taxes for higher earners.
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