10 state brackets (2-6.5%) plus local county tax (2.25-3.3%)
Maryland has a unique two-tier income tax: 2-5.75% state tax (10 brackets) PLUS mandatory 2.25-3.3% county tax. At $100,000 income, Maryland residents pay approximately $7,650 total state+county tax (7.65% effective rate) plus $12,908 federal tax. The combined state+county rate tops out at 9.05% (5.75% state + 3.3% Baltimore City/Montgomery County), making Maryland's taxes among the highest regionally despite moderate state-only rates. DC suburbs dominate economy.
Maryland has the most complex state tax structure in the US - a two-tier system with BOTH state income tax (2-5.75%, 10 brackets) AND mandatory county income tax (2.25-3.3%, varies by county). You cannot avoid county tax - all MD residents pay it. At $100K income: ~4.75% state + ~2.9% avg county = 7.65% total state+local tax, among the highest in the region.
How Maryland's unique dual tax works: Unlike most states (where local income tax is rare), Maryland requires ALL 23 counties + Baltimore City to levy local income tax. You file one state return but pay two separate taxes: state (2-5.75%) and county (2.25-3.3%). Montgomery County (DC suburbs) and Baltimore City have the highest county rates (3.3%). Somerset County (Eastern Shore) has the lowest (2.25%). At $100K: Montgomery resident pays $4,750 state + $3,300 county = $8,050 total (8.05%). Somerset resident pays $4,750 state + $2,250 county = $7,000 total (7%). Same state tax, different county tax.
Regional comparison: Virginia (2-5.75% state, NO county tax), Pennsylvania (3.07% state + 1-3.9% local in some cities), DC (4-10.75%), Delaware (2.2-6.6%). At $100K: MD $7,650 vs VA $5,175, PA $3,070 (Pittsburgh $3,850 with local), DC $6,950. Maryland is the highest-taxed in the region except DC.
| Taxable Income | Tax Rate |
|---|---|
| $0 - $1,000 | 2% |
| $1,000 - $2,000 | 3% |
| $2,000 - $3,000 | 4% |
| $3,000 - $100,000 | 4.75% |
| $100,000 - $125,000 | 5% |
| $125,000 - $150,000 | 5.25% |
| $150,000 - $250,000 | 5.5% |
| $250,000 - $500,000 | 5.75% |
| $500,000 - $1,000,000 | 6.25% |
| Over $1,000,000 | 6.5% |
Note: These are marginal rates - you only pay the higher rate on income within each bracket.
Here's what Maryland residents actually pay at different income levels (2026, single filer, standard deduction):
| Annual Income | Federal Tax | State Tax | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|
| $50,000 | $4,166 | $3,525 | $7,691 | $42,309 | 15.4% |
| $75,000 | $8,340 | $5,513 | $13,853 | $61,147 | 18.5% |
| $100,000 | $12,908 | $7,650 | $20,558 | $79,442 | 20.6% |
| $150,000 | $25,218 | $12,225 | $37,443 | $112,557 | 25.0% |
| $250,000 | $54,094 | $21,400 | $75,494 | $174,506 | 30.2% |
Note: Includes federal and state income tax only. Does not include FICA (Social Security/Medicare), which adds 7.65% for employees.
Key takeaway: At $100K, Maryland takes $7,650 in state tax alone.
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Get Matched With a CPA →Migration Trends: Maryland experienced modest net immigration of 1,230 residents (2021-2022). Top origin: Virginia (18,670 from VA - DC area job churn), DC (7,890 from DC - seeking lower housing costs than DC proper), Pennsylvania (6,120 from PA - Baltimore jobs). Outflow: Florida (14,560 to FL - 0% tax, retirees), Virginia (15,340 to VA - lower VA tax 5.75% vs MD 7.65% at $100K), Texas (8,230 to TX - 0% tax).
Why people move to Maryland: DC area federal jobs (NIH, NSA, Social Security Administration), biotech (NIH corridor), defense contractors (Lockheed, Northrop Grumman), Johns Hopkins University/Hospital, Chesapeake Bay access, excellent schools (Montgomery County ranks top-20 nationally). Why people leave: High taxes (7.65-9.05% combined state+county), high cost (Montgomery County median $680K home), better tax deals in VA (5.75% max, no local tax = save $1,900/year at $100K).
Tax considerations: County tax varies 2.25-3.3% (Montgomery/Baltimore City 3.3% highest). Property tax: 1.09% avg (Montgomery 0.93%, Baltimore City 2.25%). DC/VA/MD commuter triangle: Live where you want, but MD residents pay highest tax. Social Security: fully exempt up to $50K retirement income. Nonresidents working in MD pay 2.25% county tax (flat rate for all nonresidents). Remote worker note: If MD resident working for out-of-state employer, pay full MD tax on all income.
| State | Tax Rate | Tax on $100K Income | Difference from Maryland |
|---|---|---|---|
| Maryland | 2-5.75% + 2.25-3.3% county | $7,650 | Baseline |
| Virginia | 2-5.75% | $5,175 | -$2,475 (less tax) |
| Pennsylvania | 3.07% + local varies | $3,070 | -$4,580 (less tax) |
| Delaware | 2.2-6.6% | $5,550 | -$2,100 (less tax) |
| DC | 4-10.75% | $6,950 | -$700 (less tax) |
Key insight: Maryland's combined state+county tax (7.65% at $100K) is the highest in the region except DC (6.95%). At $100K: VA saves $2,475/year, PA saves $4,580/year. At $150K: VA saves $3,712/year, PA saves $6,880/year. The Virginia arbitrage is massive for DC-area workers: live in NoVA (Arlington/Fairfax), work in MD/DC, pay only VA 5.75% max with NO county tax vs MD 7.65-9.05%.
The DC/MD/VA triangle - where should you live? DC area jobs are spread across all 3 jurisdictions. At $150K: MD resident pays $12,225 total tax (8.15% effective). VA resident pays $8,513 (5.68%). DC resident pays $11,675 (7.78%). Winner: Virginia saves $3,712/year vs MD, $3,162/year vs DC. Many choose VA for lower taxes despite slightly higher home prices (Fairfax $650K vs Montgomery MD $680K - tax savings $3,712/year outweigh $30K higher mortgage).
Bottom line: Maryland's state+county tax structure makes it the least tax-competitive in the DMV (DC/MD/VA) region. If you work in DC area, living in Virginia saves $2,000-4,000/year at typical professional salaries ($100-150K). Only stay in MD for: Montgomery County schools (top-20 nationally), Johns Hopkins affiliation, Chesapeake Bay waterfront, or convenience if working at MD-specific sites (NIH Bethesda, NSA Fort Meade, Aberdeen Proving Ground).
All Maryland residents must pay county income tax (2.25-3.3%) in addition to state tax (2-5.75%). You file one state return but pay two taxes. County tax is based on where you live on Dec 31, not where you work. Highest county rates: Montgomery County 3.3% (DC suburbs), Baltimore City 3.3%, Howard County 3.2%. Lowest: Somerset County 2.25% (Eastern Shore). At $100K: Montgomery resident pays $4,750 state + $3,300 county = $8,050 total (8.05%). Calvert County (2.5%) resident pays $4,750 state + $2,500 county = $7,250 total (7.25%). Nonresidents working in MD pay flat 2.25% county rate regardless of income level.
Virginia saves significant tax. At $100K: VA pays $5,175 state tax (5.75% max, NO county tax) vs MD $7,650 state+county = save $2,475/year in VA. At $150K: VA pays $8,513 vs MD $12,225 = save $3,712/year. Housing: Northern VA (Arlington/Fairfax) median $650K vs Montgomery MD $680K - VA is slightly cheaper + lower taxes. Schools: Montgomery County MD ranks top-20 nationally, Fairfax County VA ranks top-10 - both excellent. Commute: Similar - Arlington to DC 20 min, Bethesda MD to DC 25 min. Bottom line: Virginia is better financially (save $2,500-4,000/year at typical salaries). Only choose MD for specific ties (Johns Hopkins, NIH Bethesda campus jobs, Chesapeake Bay waterfront).
Partially. Social Security: Fully exempt if total MD adjusted gross income is under $50,000 (all filing statuses). Above $50,000, SS is fully taxable at MD state+county rates. Pension/401k/IRA: Fully taxable at 2-5.75% state + 2.25-3.3% county. BUT: Taxpayers 65+ can deduct up to $34,300 of pension/retirement income (2026 amount, indexed to inflation). At typical retiree income ($35K SS + $35K pension = $70K): $35K SS fully taxed (over $50K threshold), $34.3K pension deducted = only $35.7K taxable, pay ~$2,500 MD tax. This is moderate - better than CA ($5,762 at $70K), worse than VA ($2,625), much worse than FL/TX (0%). MD also has no estate or inheritance tax.
State tax (2-5.75%, 10 brackets) is the same for all MD residents based on income level. County tax (2.25-3.3%) varies by which county you live in on December 31. Example at $100K: Everyone pays $4,750 state tax. Montgomery County resident adds $3,300 county tax (3.3% rate) = $8,050 total. Calvert County resident adds $2,500 county tax (2.5% rate) = $7,250 total. Same state tax, different county tax based on residence. You file one Form 502 (MD resident return) but it calculates both taxes. Nonresidents working in MD pay state tax + flat 2.25% county tax (not their home state's rates).
Maryland's total burden is higher. At $100K with $450K home: MD pays $7,650 income (state+county) + $4,905 property (1.09% avg) + $3,000 sales (6% avg on $50K) = $15,555 total (15.6%). VA pays $5,175 income + $4,050 property (0.90% avg) + $2,725 sales (5.45% avg) = $11,950 total (12%). MD pays $3,605 more/year. Over 10 years: MD pays $36,050 more than VA. But: Montgomery County MD schools rank higher than most VA counties (except Fairfax/Loudoun which are comparable). Trade-off: Pay $3,600/year more for MD schools/services, or save $3,600 in VA with similar school quality in Fairfax/Loudoun.
How we calculate: Maryland uses 10 state brackets (2-5.75%) PLUS mandatory county tax (2.25-3.3%). We calculate state tax using 10-bracket progressive structure, add average county rate (2.9% used in examples, varies 2.25-3.3% by county), and add federal tax. Data sources: Maryland Comptroller (2026 rates/brackets), U.S. Census Bureau (migration). Verification: MD's 10-bracket structure and county rates verified against Maryland Tax Code and Comptroller 2026 guidance. County rates: Montgomery/Baltimore City 3.3%, Howard 3.2%, Somerset 2.25% verified against official county tax tables. Limitations: Assumes Montgomery County (3.3%) or average county rate (2.9%). Does not include: county-specific rates (varies 2.25-3.3%), MD-specific deductions ($34,300 pension deduction age 65+, $50K Social Security exemption threshold), property tax variations (0.93% Montgomery, 2.25% Baltimore City, 0.6-1.5% rural).
These calculations are estimates for informational purposes only and reflect 2026 Maryland tax law (2-5.75% state + 2.25-3.3% county). County tax rate used: Montgomery County 3.3% or average 2.9% depending on example. Actual tax depends on your specific county. Does not include: county-specific rates (23 counties + Baltimore City, each sets own 2.25-3.3% rate), Social Security exemption ($50K threshold), pension deduction ($34,300 for age 65+), property tax variations by county, MD Earned Income Credit. Nonresidents working in MD pay state tax + flat 2.25% county rate. Always verify current rates with Maryland Comptroller and consult a licensed MD CPA for county-specific advice.
Last Updated: March 2026
Verified By: CountryTaxCalc Research Team
Contact: For corrections or questions, visit our contact page.
Last Updated: March 2026