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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 October 2026 Income tax verified October 2026 Tax Comparison 2026
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OVERVIEW
California tops the nation at 13.3% income tax. Maryland's state rate runs from 2% to 6.5% — and every Maryland resident also owes a mandatory county income tax (2.25%-3.3% by county), pushing the combined top rate as high as 9.8%. The figures in the comparison table are state income tax only; the county tax is not included, so Maryland's total is higher than shown. On state tax alone, at $100,000 income Maryland residents pay approximately $4,384 versus California's $4,911 — Maryland is $527 lower — though California is cheaper at $75,000 ($2,665 vs $3,197), with the state-only crossover at roughly $88,500. Adding a representative 3.2% county rate (charged by Maryland's most populous counties, including Montgomery and Prince George's) raises Maryland's $100,000 total to about $7,373, so California stays cheaper on state-plus-county income tax until roughly $460,000. Property tax reverses the picture: Maryland averages 0.92% versus California's average effective rate of about 0.75% (Prop 13 limits assessment growth). Sales tax is simpler: Maryland's flat 6% beats California's 7.25% base rate, which local taxes lift to 10.25% in Los Angeles and 10.75% in Oakland (8.625% in San Francisco). 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

9 progressive brackets from 1% to 12.3% (+1% Behavioral Health Services Tax over $1M)

🦀
COUNTRY B
Maryland
TAX RATE
Up to 9.8%
State + Mandatory County Tax

State 2%–6.5% plus mandatory county income tax of 2.25%–3.3%

TYPICAL ANNUAL DIFFERENCE
Moving from California → Maryland at $100,000
$527

State income tax only: Maryland's state tax is $527/year lower than California's at $100,000. Maryland residents also owe county income tax (2.25%-3.3%), not included here; with a 3.2% county rate Maryland's total would be about $7,373 versus California's $4,911.

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
$2,665
$3,197
-$532
-$5,320
$100,000
$4,911
$4,384
$527
$5,270
$150,000
$9,561
$7,040
$2,521
$25,210
$250,000
$18,861
$12,573
$6,288
$62,880
💡

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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% base rate; 10.25%–10.75% in Los Angeles and Oakland
  • Capital gains taxed as ordinary income up to 13.3%
  • Extremely high housing costs
🦀

Maryland Pros & Cons

+ PROS
  • Lower top state rate (6.5%) 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%–3.3% on top of state rate
  • State plus a 3.2% county tax costs more than California until roughly $460K income (state tax alone is lower above about $88,500)
  • Property tax ~0.92% average, higher than California's Prop 13 rate
  • Very low standard deduction ($3,400 single) increases taxable income
FAQ

Frequently Asked Questions

Is Maryland really cheaper than California for income tax?

Not necessarily — in fact usually not. Maryland's state rate runs from 2% to 6.5% across 10 brackets (the two top brackets, 6.25% and 6.5%, were added by the 2025 Budget Reconciliation and Financing Act), but every Maryland resident also pays a mandatory county income tax of 2.25%–3.3% on top of that. The comparison table shows state income tax only; a representative 3.2% county rate — the rate charged by Maryland's most populous counties, including Montgomery and Prince George's — adds county tax on top. For a single filer earning $100,000, Maryland residents pay approximately $4,384 in state tax ($7,373 with a 3.2% county tax) versus California's $4,911. On state tax alone Maryland is cheaper above roughly $88,500; including a 3.2% county tax, Maryland only becomes cheaper than California at much higher incomes — roughly above $460,000 — where California's steeply progressive top brackets finally overtake Maryland's combined rate.

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% (Worcester, lowest) to 3.3% (Dorchester and Kent, highest). The comparison table shows state income tax only, so the county tax is not included in the figures shown here. A representative 3.2% rate — the rate charged by Maryland's most populous counties, including Montgomery, Prince George's, Baltimore County, Baltimore City, and Howard — would add roughly $2,989 at $100,000 income (3.2% of Maryland taxable income).

How does California vs Maryland compare on property tax?

Maryland has a higher effective property tax rate. The statewide average is approximately 0.92%, though it varies significantly by county — from roughly 0.56% in Talbot County to about 1.37% in Baltimore City (Tax Foundation, 2024 ACS estimates). 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 $5,520/year; California = approximately $4,500/year. The $1,020 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 9.7% for major-county residents, and since tax year 2025 Maryland adds a further 2% tax on net capital gains for taxpayers with federal AGI above $350,000 (Comptroller Tax Bulletin 58), which brings the top combined rate on gains to about 11.7% in a 3.2% county. 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 roughly 11.7% (for gains taxed in full) is a much smaller gap than the headline rates suggest.

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 10.25% in Los Angeles, 10.75% in Oakland and 8.625% in San Francisco (CDTFA rates effective October 2026). For everyday spending, a Maryland resident paying 6% on taxable purchases saves meaningfully versus a California resident in Los Angeles or Oakland paying 10.25% or more.

At what income does California become cheaper than Maryland?

It depends on whether Maryland's county tax is counted. On state income tax alone, California is cheaper below roughly $88,500 and Maryland is cheaper above that — $4,911 vs $4,384 at $100,000, and $18,861 vs $12,573 at $250,000. Maryland residents also owe county income tax, though: using a representative 3.2% county rate, Maryland's combined state-plus-county burden stays higher than California's all the way up to roughly $460,000 — for example, California costs $18,861 versus Maryland's $20,464 at $250,000. Only above roughly $460,000 do California's steepest brackets (12.3% and 13.3%) finally overtake Maryland's combined rate, making Maryland the cheaper option.

What is the standard deduction in California vs Maryland?

Both states have relatively low standard deductions compared to the federal standard deduction. California allows $5,900 for single filers and $11,800 for married filing jointly (2026). Maryland switched from a percentage-of-income formula to a flat standard deduction starting with the 2025 tax year: $3,350 for single filers and $6,700 for married filing jointly in 2025 ($3,400 and $6,800 for 2026), plus a separate $3,200 personal exemption that steps down in tiers rather than phasing out linearly — $3,200 at federal AGI of $100,000 or less, $1,600 above $100,000 up to $125,000, $800 above $125,000 up to $150,000, and $0 above $150,000 (single filer). Maryland's base deduction ($3,350 for 2025, $3,400 for 2026) is still lower than California's ($5,900 for 2026), 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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