Maryland uses a progressive income tax system with state rates from 2% to 5.75% for 2026. But here's the catch: every Maryland county (and Baltimore City) adds its own local income tax on top, ranging from 2.25% to 3.28%. Your actual combined state + county rate can reach over 8% at the top bracket.

On a $100,000 salary filing single in Montgomery County (3.28% local rate), your combined state and county tax would be roughly $5,700. The same salary in Virginia would be about $5,100 in state tax. The county tax makes Maryland more expensive than the state rate alone suggests.

On top of state and county tax, you've got federal progressive brackets with the standard deduction, plus FICA at 7.65% combined. 401(k) contributions reduce taxable income at both the federal and state level — and since Maryland's top combined rate can exceed 8%, those pre-tax deductions are worth even more.

Maryland doesn't tax Social Security benefits. Property taxes average about 1.1%, and combined sales tax is 6%, which is on the lower side. For retirees, Maryland excludes up to $34,300 of pension and retirement income from state tax. Compare MD to other states.

How It's Calculated

Formula

MD State Tax = ∑(Bracket Income × Bracket Rate) + County Tax, brackets: 2%–5.75%

Step-by-Step

1Apply MD progressive brackets (2%–5.75%) to state taxable income
2Add county income tax (2.25%–3.28% depending on county)
3Combined MD state + county top rate can exceed 9%
4Add federal tax (10%–37% progressive brackets) and FICA (7.65%)
5Sum all taxes and subtract from gross pay for net take-home

Example

$100,000 salary, single in MD (Montgomery County, 3.28%): MD state + county tax ≈ $5,700. Federal ≈ $11,670. FICA = $7,650. Net ≈ $74,980.

For detailed data sources and full methodology, see our Methodology & Data Sources page.

Key Rates & Data for 2026

MD State Tax Brackets

2% – 5.75%

MD County Tax Range

2.25% – 3.28%

MD Max Combined Rate

~9.03%

MD Avg Property Tax Rate

~1.1%

MD State Sales Tax

Maryland Tax Calculator FAQ

How much is Maryland state income tax in 2026?

Maryland has a progressive state income tax with brackets from 2% to 5.75%. But here's the catch — every Maryland county also imposes a county income tax ranging from 2.25% to 3.28%. That means your combined top state + county rate can reach 8.03% to 9.03%, which is among the highest in the nation. For a $75K single filer in Montgomery County (3.2% county rate), combined state + county tax is roughly $3,800.

Does Maryland have a standard deduction?

Yes, but it's small. $2,400 for single filers and $4,800 for married filing jointly. That's much lower than the federal $16,100 standard deduction. Maryland also offers a personal exemption of $3,200 per person ($6,400 married), which further reduces taxable income. Combined, a single filer gets $5,600 in deductions before the tax brackets kick in.

How do Maryland county taxes work?

Each of Maryland's 23 counties plus Baltimore City imposes its own local income tax, set as a percentage of your Maryland taxable income. Rates range from 2.25% (Worcester County) to 3.28% (Caroline, Dorchester, Howard, Prince George's, Wicomico, and Worcester counties at the high end). Montgomery County charges 3.2%. This calculator shows state tax only — add your county rate for the full picture.

Does Maryland tax Social Security benefits?

No. Maryland does not tax Social Security benefits. The state also excludes up to $34,300 of pension income from taxation for residents 65 and older (or $29,900 for those 55-64). That's fairly generous. 401(k) and IRA withdrawals above these thresholds are taxable at the full state + county rate.

Is Maryland a high-tax state?

Yes, Maryland consistently ranks among the top 10 highest-tax states. The combined state + county income tax can reach 9%, property taxes average 1.06%, and the state sales tax is 6% (no local add-ons). For a $100K earner in a high-county-tax area, the total state and local tax burden can exceed $8,000. High property values in the DC suburbs make it even more expensive. The one saving grace: proximity to high-paying DC jobs can offset the tax burden.

Florida vs Texas Tax Comparison

A detailed comparison of the tax structures in Florida and Texas — two of the most popular no-income-tax states for relocation.

2026 Tax Brackets: IRS Income Tax Brackets 2026 Explained

Complete guide to the IRS 2026 tax brackets — income tax brackets 2026, marginal tax rate, federal income tax rates, adjusted gross income, and tax credits for married couples filing jointly.

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