Does Maryland have a state income tax?

Yes. Maryland has a state income tax with a top rate of 5.8%.

How much is Maryland state tax on a $100,000 salary?

On a $100,000 salary in Maryland, state income tax is approximately $3,933. Your estimated total take-home pay is $75,247/year.

What other taxes does Maryland have?

Maryland's local county/city income taxes range from 1.75% to 3.2% — these are collected with your state return and represent a significant additional burden. Maryland has a 6% state sales tax. Property taxes average about 1.07% of home value.

How does Maryland compare to other states for taxes?

Maryland's top rate of 5.8% compares unfavorably — above the national median for state income taxes.

Does Maryland have a local income tax?

Yes — Maryland has both a state income tax and a mandatory local county or city income tax. The local rate depends on where you live and ranges from 1.75% (Worcester County) to 3.2% (several counties). Baltimore City charges 3.2%. This makes Maryland's combined rate one of the highest in the mid-Atlantic.

How does Maryland's standard deduction work?

Maryland has one of the lowest standard deductions in the country — just $2,350 for single filers and $4,700 for married filing jointly. This means more of your income is subject to Maryland tax compared to states that match the federal standard deduction.

How do Maryland taxes compare to Virginia?

Maryland and Virginia have similar state income tax top rates (5.75% each), but Maryland's mandatory local income taxes push most residents to a significantly higher combined rate. Virginia has no mandatory local income tax for most residents, making it generally lower-tax on income.

State Tax Guide

Maryland State Income Tax Guide (2026)

Maryland has a progressive income tax topping out at 5.75%, but most residents also pay a local county income tax of 1.75%–3.2% on top of state tax.

Top State Rate

5.8%

$100k Take-Home

$75,247

/year (single)

State Tax on $100k

$3,933

single filer

Maryland Income Tax Brackets (2026)

Marginal Rate	Taxable Income (Single Filer)
2%	$0→$1,000
3%	$1,000→$2,000
4%	$2,000→$3,000
4.75%	$3,000→$100,000
5%	$100,000→$125,000
5.25%	$125,000→$150,000
5.5%	$150,000→$250,000
5.75%	Over $250,000

Each rate applies only to income within that bracket. Your effective rate is the average across all brackets — meaningfully lower than your top marginal rate.

Standard deduction: $2,350 single / $4,700 married filing jointly

Brackets reflect the most recently published schedules. Some states inflation-index thresholds annually — specific 2026 amounts may shift slightly. Verify with your state's Department of Revenue before filing.

$100,000 Salary in Maryland — Full Tax Breakdown

Category	Annual	Monthly
Gross Salary	$100,000	$8,333
Federal Tax	−$13,170	−$1,098
FICA (SS + Medicare)	−$0.00	−$0.00
Maryland State Tax	−$3,933	−$328
Take-Home Pay	$75,247	$6,271

Assumes single filing status, standard deduction, no 401(k) or HSA contributions. 2026 tax year.

Maryland's 2% Capital-Gains Surtax — Worked Example

Under the 2025 Budget Reconciliation Act, Maryland levies a 2% surtax on net capital gains when federal AGI exceeds $350,000. Primary-residence sale gain under $1.5M and retirement-account assets are exempt.

Scenario: $400K salary + $100K net capital gains

Federal AGI: $500,000 → exceeds $350K threshold, surtax applies.
MD state tax on $400K wages (top bracket 5.75%): ~$20,800
MD 2% surtax on $100K of gains: +$2,000
Total MD state tax with surtax: ~$22,800

If your AGI were under $350K, the $2,000 disappears — the surtax only applies once you cross the threshold. Push the limit ($340K AGI with $100K of gains) and consider deferring gains to the next tax year if it puts you just over.

Plug in your own numbers →MD Comptroller TB 58 →

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The 30-second version

1.Maryland's headline state rate caps at 6.5% on $1M+ (post-2025 Budget Reconciliation Act adds new top brackets at $500K/$1M) — but the real picture is state + mandatory county piggyback tax. Combined effective rates for most residents: 7.75% to 9.7%.
2.2% capital-gains surtax on AGI > $350,000 — Maryland's 2025 BRA added a 2% surcharge on net capital gains for filers with federal AGI above $350K (same threshold for all filing statuses). Applies on top of regular state + local tax, so a high-earner MD resident pays an effective marginal rate near 11.7% on capital gains. Primary-residence sale gain under $1.5M and retirement-account assets are exempt.
3.County piggyback rates: Montgomery (Bethesda/Rockville/Silver Spring) 3.2%, Howard 3.2%, Prince George's 3.2%, Baltimore City 3.2%, Anne Arundel 2.7%, Frederick 2.96%. The lowest is Worcester at 1.75%. There is no opt-out — all MD residents pay county tax.
4.MD standard deduction is unusually low ($2,550 single / $5,150 MFJ in 2026) — taxable income is much larger than federal taxable income.
5.DC commuter dynamic: MD-DC reciprocity means MD residents working in DC owe only MD tax. MD-VA reciprocity is similar. Cleanest interstate setup in the country alongside VA.
6.Estate tax: $5M exemption (relatively friendly) plus inheritance tax for distant relatives (10% on Class A non-spouse, 0% on Class A relatives — confusing but mostly favorable).

Why you can trust these numbers

Numbers reflect 2026 IRS federal brackets, FICA caps, and current Maryland Comptroller progressive brackets including the new $1M+ rate (effective 2024). The calculator at the top reflects this. County piggyback tax is shown separately because the calculator doesn't model it — add 1.75–3.2% of your taxable income depending on your county.

Sources: federal brackets + standard deduction from IRS Rev. Proc. 2025-32; state brackets verified against the Tax Foundation 2026 State Income Tax Rates compilation and the official Maryland Resident Tax Booklet (Comptroller of Maryland).

The state + county piggyback — Maryland's true tax picture

Maryland has 8 brackets up to 5.75% (or 6.5% on income above $1M under 2024 Budget Reconciliation Act reforms). State alone is moderate — comparable to VA. The wrinkle is the mandatory county/city piggyback tax. Every Maryland resident lives in a county that levies an additional income tax, ranging from 1.75% (Worcester) to 3.2% (Montgomery, Howard, Prince George's, Baltimore City, several others). The county tax is collected on the same return as the state tax and goes directly to the local jurisdiction.

Net effect for typical residents: Bethesda/Rockville (Montgomery County 3.2%) — combined state + county effective rate ~7.5–8.5% for middle/upper-income earners. Baltimore City (3.2%) — same combined rate. Howard County (Columbia/Ellicott City, 3.2%) — same. Lower-tax suburban counties (Anne Arundel 2.7%, Carroll 3.03%) come in slightly cheaper.

The MD standard deduction is unusually low — $2,350 single / $4,700 MFJ. Personal exemption is $3,200 per filer. So your MD-state taxable income is meaningfully larger than your federal-AGI-minus-federal-standard-deduction figure.

What you'll actually pay — two real-life scenarios

Two scenarios to anchor the math.

Illustrative — single filer unless noted, federal standard deduction, full-year MD residency, W-2 income unless specified. County tax shown separately because the calculator doesn't model it. Two-earner MFJ households pay more FICA than the calculator shows. Ballparks, not invoices.

Scenario 1: Bethesda federal worker / DC commuter, $185,000

Federal income tax	~$33,650
Maryland state income tax	~$8,350
Montgomery County piggyback (3.2%)	~$5,440
FICA + Additional Medicare	~$14,100
Total taxes	~$61,540
Annual take-home	~$123,460
Effective state + county rate	~7.5%

Classic NoVA equivalent on the Maryland side — federal employee or contractor in Bethesda, Rockville, or Silver Spring commuting via Metro to DC. Same comp in Arlington VA: ~$9,500 VA tax + 0 local = $9,500. Maryland's $8,350 + $5,440 = $13,790 — about $4,300 MORE than VA. This is why NoVA outcompetes Maryland for many federal/contractor professionals on after-tax math. The MD-VA reciprocity for DC commuters helps: a Bethesda resident working in DC pays only MD tax, no DC tax (under MD-DC reciprocity).

Scenario 2: Baltimore healthcare worker, $110,000

Federal income tax	~$15,800
Maryland state income tax	~$4,460
Baltimore City piggyback (3.2%)	~$3,040
FICA	~$8,400
Total taxes	~$31,700
Annual take-home	~$78,300
Effective state + city rate	~6.8%

Johns Hopkins, University of Maryland Medical System, MedStar — Baltimore's healthcare/biotech corridor. Baltimore City's 3.2% piggyback is the highest in MD. Moving to Baltimore County (3.2% as well) doesn't help; Howard or Anne Arundel County would. The $7,500 combined MD bill compares to ~$5,800 in CA or ~$10,500 in NY — moderate by national standards but high by Mid-Atlantic standards.

Property tax + the DC-MD-VA reciprocity

MD property tax effective rates by county (approximate): Montgomery 0.95–1.10%, Howard 1.05–1.20%, Anne Arundel 0.85–1.00%, Prince George's 1.00–1.25%, Baltimore County 1.00–1.15%, Baltimore City 1.55–1.80% (highest), Frederick 0.95–1.10%, Charles 0.95–1.10%. Statewide average ~1.05% — moderate. Baltimore City stands out as significantly above average due to school funding mechanics.

DC-MD-VA wage tax reciprocity: MD residents working in DC owe only MD tax (no DC tax). MD residents working in VA owe only MD tax (no VA tax). Reverse works similarly. This makes the Bethesda-to-DC and Silver Spring-to-DC commutes clean from a tax perspective. File MW-507 with your DC employer to ensure correct withholding.

Things financially comfortable Marylanders actually do

Max your 401(k) ($24,500 in 2026) — pre-tax for federal AND Maryland (both state and county piggyback).
Max your HSA if eligible — pre-tax for federal AND MD.
Backdoor Roth IRA — fully legal.
Mega backdoor Roth if your employer's 401(k) plan allows after-tax contributions.
Maryland 529 (Maryland College Investment Plan or Maryland Prepaid College Trust) — MD allows a state-tax deduction up to $2,500 per beneficiary annually for contributions to a MD 529 plan (10-year carryforward of excess). Modest but worth claiming.
Pension exclusion — for ages 65+ (or under 65 with disability), MD allows up to $34,300 (2026, indexed) of pension and retirement annuity income to be excluded. Apply on Form 502.
Retirement income exclusion — additional benefit for MD military retirees (up to $20K subtraction).
DC commuter — file Maryland MW-507 with your DC employer to ensure MD tax (not DC) is withheld.
Choosing your county wisely — when buying or renting, run the math on county piggyback differential. Carroll County (3.03%) vs Howard (3.2%) is a 0.17% difference; small but real on $200K of income (~$340/year). Worcester at 1.75% is by far the lowest if Eastern Shore living suits you.

Real questions people actually ask

Q: Why is Maryland tax so high if the state rate is only 5.75%?

The county piggyback is mandatory and substantial — typically 2.7–3.2% on top of the state rate. So Bethesda/Rockville residents (Montgomery County 3.2%) effectively face 8.95% on income in the top state bracket. Combined with the very low MD standard deduction, more income falls into higher brackets than in peer states. This is why MD often shows up in 'most-taxed states' rankings even though the state-rate-alone number looks moderate.

Q: How does the MD-DC commuter setup work?

Under DC-MD reciprocity, MD residents working in DC owe only MD tax (state + county). DC doesn't tax non-residents on wages. File DC Form D-4A (Certificate of Non-Residence) with your DC employer to ensure MD tax (not DC) is withheld. Similarly clean: MD residents working in VA owe only MD tax. The Capital region's three-state-and-DC reciprocity is one of the cleanest in the country.

Q: Did Maryland really raise taxes on millionaires recently?

Yes. The 2024 Maryland Budget Reconciliation Act added two new top brackets: 6.25% on income $500K–$1M (single) and 6.5% above $1M (single). The new MFJ bracket structure parallels these at higher thresholds. Combined with county piggyback (3.2% in Montgomery/Howard), a $2M MD high earner faces an effective combined state + county rate near 9.7%. Comparable to or slightly above NY's combined state + NYC rate.

Q: Does MD tax retirement income?

Partially. SS is exempt. The pension exclusion ($34,300 for 2026, indexed) covers most of pension and retirement annuity income for filers 65+ (or disabled). IRA and 401(k) distributions are NOT covered by the standard pension exclusion in most cases — they're taxed at MD rates. Military retirement gets an additional $20K subtraction. For typical retirees with mixed pension + IRA income, MD is moderate; for those with primarily pension + SS income, MD is friendly.

Our honest opinion (which is just an opinion)

Maryland is a quietly high-tax state — the headline 5.75% obscures the mandatory 2.5–3.2% county piggyback that brings the combined effective rate well above 7% for most residents. The trade-off is real: strong public services, excellent public schools (Howard, Montgomery, Frederick consistently rank top-25 nationally), proximity to DC institutions, and clean reciprocity for commuters.

The case for Maryland:

Excellent public schools in many counties (Howard, Montgomery, Frederick)
Wage-tax reciprocity with DC and VA
Strong economy: federal/defense, biotech (Rockville/Frederick corridor), Johns Hopkins healthcare
Pension exclusion for retirees 65+ ($34,300 in 2026)
$5M state estate tax exemption (relatively friendly)
Cost of living lower than DC proper

The case against:

County piggyback (1.75–3.2%) compounds state rate meaningfully
Standard deduction unusually low ($2,350 single)
New $1M+ surtax pushes high earners to 9.7% combined state + county
Baltimore City property tax is the highest in MD
MD inheritance tax (10%) on non-relative beneficiaries

Honest take: if you're a federal employee or DC professional, run the MD-vs-VA comparison honestly — VA usually wins on after-tax math by $3K–$5K/year, but MD's school quality (in the right counties) and proximity to certain federal facilities can matter. For high-comp residents, the new $1M+ surtax is a real consideration. For retirees, MD is friendlier than its reputation if your income is primarily SS + pension.

What now

Run your numbers in the calculator above. Add your county piggyback (typically 2.7–3.2% of taxable income). If you're a DC commuter, file MW-507 with your DC employer to ensure correct withholding. If you're 65+, claim the pension exclusion. The biggest tax mistake most Marylanders make isn't paying too much state tax — it's missing the pension exclusion or failing to factor county piggyback into housing decisions.

Sources & further reading

A few honest notes

Not personal tax, legal, or financial advice. Verify with a licensed CPA, EA, or tax attorney before making meaningful decisions.
Tax law changes. This guide reflects 2026 IRS schedules and current MD Comptroller rules including the 2024 BRA top-bracket changes.
County piggyback rates vary — verify your specific county's current rate.
Property tax estimates vary by county and city — check your local assessor's website.
The numbers are illustrative — scenarios don't include every credit, deduction, or wrinkle that might apply to you.
The calculator at the top doesn't model county piggyback tax — add it manually for accurate combined picture.
No client relationship is created by reading this page.

Last updated April 2026 with 2026 IRS schedules and current MD Comptroller guidance.