Maryland has state income taxes plus mandatory county “piggyback” taxes — meaning you’ll pay both. Here’s your complete guide. Note: County piggyback tax rates below reflect the last confirmed figures; confirm current rates for your specific county with the Maryland Comptroller before relying on them, as counties can adjust rates.
Maryland Tax Overview
| Tax Type | Rate | Notes |
|---|---|---|
| State Income Tax | 2%-5.75% | Progressive brackets |
| County Income Tax | ~2.25%-3.2% (confirm current) | Mandatory additional tax |
| Combined Income Tax | ~4.25%-8.95% (confirm current) | State + county |
| Sales Tax | 6% | Some categories higher |
| Property Tax | ~1.07% avg (confirm current) | 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 have historically added close to the maximum local rate, bringing the combined top rate close to 8.95% — confirm current county rates before relying on this figure.
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 — this isn’t optional. Confirm current rates for your specific county with the Maryland Comptroller, as these figures were not independently re-verified this session and can change:
| County/City | Local Rate (confirm current) | Combined Max (confirm current) |
|---|---|---|
| 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% |
Maryland Total Tax Calculator (Illustrative)
| Salary (Montgomery Co., illustrative) | State Tax (approx.) | County Tax (approx., at 3.2%) | Total MD Tax (approx.) |
|---|---|---|---|
| $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 |
Maryland vs. Neighboring States
Maryland’s combined income tax burden is among the higher figures in the region. Confirm current top rates for each comparison state before relying on this table, as several jurisdictions adjust rates periodically:
| State | Top Income Tax (confirm current figures) | Sales Tax | Property Tax (confirm current) |
|---|---|---|---|
| Maryland | ~8.95% combined (state + max county) | 6% | ~1.07% |
| Virginia | 5.75% | 5.3% | ~0.87% |
| DC | Confirm current top rate | 6% | ~0.56% |
| Pennsylvania | 3.07% | 6% | ~1.53% |
| Delaware | 6.6% | 0% | ~0.55% |
Maryland Standard Deduction
Maryland’s standard deduction is calculated as a percentage of AGI within minimum/maximum limits. Confirm the current-year minimum and maximum amounts with the Maryland Comptroller, as these were not independently re-verified this session.
Maryland Personal Exemptions
Confirm the current-year personal exemption amount per filer/dependent with the Maryland Comptroller, as this figure was not independently re-verified this session and phases out at higher incomes.
Maryland Tax Credits
Confirm current amounts and percentages for Maryland’s tax credits with the Comptroller’s office, as several of these are adjusted periodically:
| Credit | Amount (confirm current figure) |
|---|---|
| Child and Dependent Care | A percentage of the federal credit |
| Earned Income Credit | A percentage of the federal EITC — Maryland’s match is among the more generous in the country |
| Student Loan Debt Relief | Confirm current maximum |
| Hometown Heroes Homeownership | Confirm current maximum |
| Preservation and Conservation | Confirm current maximum |
Property Tax in Maryland
Confirm current effective property tax rates by county with the Maryland Department of Assessments and Taxation or the Tax Foundation, as county-level figures were not independently re-verified this session. Baltimore City has historically had notably higher effective property tax rates than most surrounding counties.
Homestead Tax Credit
Maryland limits annual property tax increases on owner-occupied homes at the state level, with some counties applying lower caps — confirm the current statewide and county-specific caps.
Retirement Income in Maryland
| Income Type | State Tax |
|---|---|
| Social Security | Exempt (Maryland does not tax Social Security) |
| Federal pensions | Partially exempt (confirm current dollar cap) |
| Military pensions | Fully exempt |
| 401(k)/IRA (age 65+) | Confirm current exemption cap |
| Private pensions (65+) | Confirm current exemption cap |
Maryland is relatively friendly to retirees with its pension exemption. Confirm the current dollar cap with the Maryland Comptroller, as this figure is periodically adjusted and was not independently re-verified this session.
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)
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) | Confirm current exemption cap |
| Federal/state pension (age 65+) | Confirm current exemption cap |
| 401(k) / IRA withdrawals | Fully taxable (no special exemption) |
| Private pension | Confirm current exemption cap (age 65+) |
| Retirement income credit | Confirm current maximum 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 (following the federal inclusion rules). Maryland also offers a 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. Confirm the current percentage and mechanics with the Maryland Comptroller, as these were not independently re-verified this session.
To claim the Maryland EITC, file Form 502 and complete the EITC worksheet.
Maryland Tax Planning Tips
- Max retirement accounts — reduces combined state + county tax
- Consider county differences — local rates vary meaningfully across the state
- Claim pension exemption — confirm the current dollar cap for those 65+
- Use MD 529 deduction — confirm the current per-account annual limit
- Track itemizable expenses — MD allows itemizing similar to federal
- File early — Maryland refund processing time varies by year
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 max county) | 5.75% |
| Sales tax | 6% | 5.3% |
| Property tax (avg, confirm current) | ~1.07% | ~0.87% |
| 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 can reach close to 9% in high-rate counties — among the higher figures in the nation. However, Maryland offers 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.
For a side-by-side comparison of every state’s income tax rates, see state income tax rates by state 2026 and best and worst states for taxes 2026. Federal income tax applies on top of state taxes — see 2026 federal income tax brackets to calculate your combined liability.
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