Progressive 10-Bracket System | 2% - 6.5% Rates | NEW Top Brackets!
⚠️ Important: This calculator shows STATE tax only. Maryland also has LOCAL county taxes (2.25%-3.2%) that MUST be added. See local tax section below for total tax burden.
Who's Affected: High earners ($500k+) pay more. Middle class ($50k-$150k) mostly unaffected but benefit from higher standard deduction.
| Income Range | Tax Rate | Tax on Bracket |
|---|---|---|
| $0 - $1,000 | 2% | $20 |
| $1,001 - $2,000 | 3% | $30 |
| $2,001 - $3,000 | 4% | $40 |
| $3,001 - $100,000 | 4.75% | Up to $4,607 |
| $100,001 - $125,000 | 5% | Up to $1,250 |
| $125,001 - $150,000 | 5.25% | Up to $1,312 |
| $150,001 - $250,000 | 5.5% | Up to $5,500 |
| $250,001 - $500,000 | 5.75% | Up to $14,375 |
| $500,001 - $1,000,000 | 6.25% NEW 2025 | Up to $31,250 |
| $1,000,001+ | 6.5% NEW 2025 | On amount over $1M |
| Income Range | Tax Rate |
|---|---|
| $0 - $1,000 | 2% |
| $1,001 - $2,000 | 3% |
| $2,001 - $3,000 | 4% |
| $3,001 - $150,000 | 4.75% |
| $150,001 - $175,000 | 5% |
| $175,001 - $225,000 | 5.25% |
| $225,001 - $500,000 | 5.5% |
| $500,001 - $600,000 | 5.75% |
| $600,001 - $1,200,000 | 6.25% NEW 2025 |
| $1,200,001+ | 6.5% NEW 2025 |
Maryland is UNIQUE - all 23 counties + Baltimore City levy their own income taxes ON TOP OF state tax. Your actual tax rate is STATE + COUNTY.
| County | Local Rate | Combined Rate ($75k) | Total Tax ($75k) |
|---|---|---|---|
| Montgomery County | 3.2% | 7.95% (4.75% + 3.2%) | ~$5,962 |
| Prince George's County | 3.2% | 7.95% (4.75% + 3.2%) | ~$5,962 |
| Baltimore County | 3.2% | 7.95% | ~$5,962 |
| Anne Arundel County | 2.81% | 7.56% | ~$5,669 |
| Howard County | 3.2% | 7.95% | ~$5,962 |
| Baltimore City | 3.2% | 7.95% | ~$5,962 |
| Frederick County | 3.03% | 7.78% | ~$5,835 |
| Harford County | 3.06% | 7.81% | ~$5,858 |
| State | Tax Structure | Rate/Top Rate | Tax on $75k |
|---|---|---|---|
| Maryland (STATE only) | Progressive (10 brackets) | 2% - 6.5% | $3,562 |
| Maryland (+ County 3.2%) | State + Local | Combined 7.95% | $5,962 |
| Virginia | Progressive (4 brackets) | 2% - 5.75% | $4,313 |
| Pennsylvania | Flat | 3.07% | $2,303 |
| Delaware | Progressive (7 brackets) | 2.2% - 6.6% | ~$4,125 |
| West Virginia | Progressive (5 brackets) | 2.36% - 4.82% | ~$3,113 |
Maryland offers a generous Social Security exemption. Taxpayers with AGI under $100,000 (single) or $150,000 (married) can fully exclude all Social Security income. Above these thresholds, benefits become partially taxable using federal rules.
Maryland offers a retirement income exemption: taxpayers age 65+ or totally disabled can exclude up to $35,200 of pension/401(k)/IRA income annually, IF total income is under $100,000 (single) or $150,000 (married). Above these limits, the exemption phases out quickly.
Capital gains are taxed as ordinary income at progressive rates (2%-6.5%). NEW for 2025: Additional 2% surtax on capital gains if your AGI exceeds $350,000. This targets high-income investors.
No, Maryland does not allow you to deduct federal income taxes paid. However, you can deduct certain other items like state and local taxes (subject to federal SALT cap).
Maryland state tax returns are due on April 15, 2026 for the 2025 tax year (same as federal). Extensions are available until October 15, 2026.
Yes! Maryland has reciprocal agreements with Pennsylvania, Virginia, West Virginia, and DC. If you live in MD but work in one of these jurisdictions (or vice versa), you only pay income tax to your resident state.
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