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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A California VS COUNTRY B Maryland

Side-by-side analysis of income tax, effective rates, and take-home pay for California and Maryland in 2026.

Daniel · CountryTaxCalc Updated June 2026 Tax Comparison 2026
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OVERVIEW
California tops the nation at 13.3% income tax. Maryland looks cheaper at 5.75% state rate — until you add the mandatory county income tax (up to 3.20%), pushing the combined top rate to 8.95% for most major-county residents. At $100,000 income (single, Montgomery County), Maryland residents pay approximately $8,012 in combined state and county income tax versus California's $6,264 — Maryland is actually higher at this income level. The gap narrows dramatically compared to the Texas scenario: California wins on income tax below roughly $180,000 for major-county Maryland residents. Property tax reverses the picture: Maryland averages 1.09% versus California's Prop 13-capped 0.75%. Sales tax is simpler: Maryland's flat 6% beats California's 7.25%–10.5% blended rates. Neither state taxes Social Security income.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.
🌴
COUNTRY A
California
TAX RATE
13.3%
Highest in Nation
10 progressive brackets from 1% to 13.3% (including 1% Mental Health Services surtax)
🦀
COUNTRY B
Maryland
TAX RATE
Up to 8.95%
State + Mandatory County Tax
State 2%–5.75% plus mandatory county income tax of 2.25%–3.20%
TYPICAL ANNUAL DIFFERENCE
Moving from Maryland → California at $100,000
$1,748
That's $146/month back in your pocket
Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.
GROSS INCOME
🌴 CA TAX
🦀 MD TAX
SAVINGS
10-YEAR
$75,000
$4,113
$5,756
-$1,643
-$16,430
$100,000
$6,264
$8,012
-$1,748
-$17,480
$150,000
$10,991
$12,493
-$1,502
-$15,020
$250,000
$22,471
$21,268
$1,203
$12,030
💡

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🌴

California Pros & Cons

+ PROS
  • No local income tax (rare exceptions only)
  • Social Security fully exempt from state tax
  • Prop 13 keeps property tax assessments low
  • Tech and entertainment job market
− CONS
  • Highest state income tax in the nation (13.3%)
  • Sales tax 7.25%–10.5% statewide
  • Capital gains taxed as ordinary income up to 13.3%
  • Extremely high housing costs
🦀

Maryland Pros & Cons

+ PROS
  • Lower top state rate (5.75%) than California
  • Flat 6% sales tax — no local add-ons
  • Social Security fully exempt from state tax
  • Proximity to Washington D.C. federal job market
− CONS
  • Mandatory county income tax adds 2.25%–3.20% on top of state rate
  • Combined top rate 8.95% — higher than California below ~$180K
  • Property tax ~1.09% average, higher than California's Prop 13 rate
  • Very low standard deduction ($2,350 single) increases taxable income
FAQ

Frequently Asked Questions

Is Maryland really cheaper than California for income tax?

Not necessarily. Maryland's state rate tops out at 5.75%, but every Maryland resident also pays a mandatory county income tax of 2.25%–3.20% on top of that. In major counties — Montgomery, Prince George's, Howard, and Baltimore City — the combined rate reaches 8.95%. For a single filer earning $100,000, Maryland residents in these counties pay approximately $8,012 in combined state and county tax versus California's $6,264. Maryland only becomes cheaper than California at higher incomes (roughly above $180,000–$200,000 for major-county residents) where California's steeply progressive top brackets dominate.

What is Maryland's county income tax and who has to pay it?

Every Maryland resident must pay a county (or Baltimore City) income tax in addition to state income tax — it is not optional. Rates range from 2.25% to 3.20% depending on where you live. The highest rate of 3.20% applies in Baltimore City, Montgomery County, Prince George's County, and Howard County, which together contain the majority of the state's population. The county tax is collected alongside state tax on your Maryland return, so many residents do not realise they are paying two separate levies.

How does California vs Maryland compare on property tax?

Maryland has a higher effective property tax rate. The statewide average is approximately 1.09%, though it varies significantly by county — Baltimore City runs around 1.8%, while some counties are closer to 0.9%. California's effective rate averages around 0.75% thanks to Proposition 13, which limits annual assessment increases to 2% per year. On a $600,000 home: Maryland = approximately $6,540/year; California = approximately $4,500/year. The $2,040 annual difference is meaningful, though California's higher home prices mean the base is often larger.

How do both states treat capital gains tax?

Both California and Maryland tax capital gains as ordinary income at state level — there is no preferential long-term capital gains rate at the state level in either state. In California, capital gains can be taxed at up to 13.3% (the top marginal rate). In Maryland, capital gains are taxed at the combined state plus county rate, up to 8.95% for major-county residents. Federal rates (0%, 15%, 20% plus 3.8% NIIT) apply on top in both states. For high earners with large capital gains, California's 13.3% versus Maryland's 8.95% is a significant difference.

Is Social Security taxed in California or Maryland?

Neither California nor Maryland taxes Social Security benefits at the state level. This is a meaningful benefit for retirees compared with states that partially or fully tax Social Security. Federal taxation of Social Security still applies in both states depending on your combined income.

Which state has lower sales tax — California or Maryland?

Maryland wins on sales tax. Maryland charges a flat 6% statewide with no local additions, and food and prescription medicine are exempt. California's state base rate is 7.25%, but local district taxes push combined rates to 9%–10.5% in cities like Los Angeles, San Francisco, and Oakland. For everyday spending, a Maryland resident paying 6% on taxable purchases saves meaningfully versus a California resident in a major metro paying 10% or more.

At what income does California become cheaper than Maryland?

For single filers in major Maryland counties (where county tax is 3.20%), California's income tax is lower up to approximately $180,000–$200,000. Below that range, California's more gradual bracket progression means a lower effective rate than Maryland's combined state-plus-county burden. Above roughly $200,000, California's steeper brackets — especially the jump toward 10.3%, 11.3%, 12.3%, and 13.3% — overtake Maryland's effectively flatter combined rate. At $250,000, the comparison flips: California costs approximately $22,471 versus Maryland's $21,268.

What is the standard deduction in California vs Maryland?

Both states have very low standard deductions compared to the federal standard deduction. California allows $5,202 for single filers and $10,404 for married filing jointly (2026). Maryland allows just $2,350 for single filers and $4,700 for married filing jointly. Maryland's deduction is less than half of California's, which means more Maryland income is exposed to tax before deductions apply. This partly explains why Maryland's effective rates at moderate incomes are higher than the headline state-only rate suggests.
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