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
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
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
| 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)
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 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.
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.