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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's state rate runs from 2% to 6.5% — until you add the mandatory county income tax (2.25%-3.3% by county), pushing the combined top rate as high as 9.8%, well above California's for most incomes. The free calculator blends a representative 3.2% county rate — the rate charged by Maryland's most populous counties, including Montgomery and Prince George's — directly into Maryland's state brackets. At $100,000 income, Maryland residents pay approximately $7,504 in combined state and county income tax versus California's $5,208 — Maryland is actually higher at this income level. California actually wins on income tax across nearly the entire income range tested here: it stays cheaper through $250,000, with Maryland only pulling ahead at roughly $445,000 and up. Property tax reverses the picture: Maryland averages 0.92% 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 9.7%
State + Mandatory County Tax

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

TYPICAL ANNUAL DIFFERENCE
Moving from Maryland → California at $100,000
$2,296

That's $191/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
$2,928
$5,389
-$2,461
-$24,610
$100,000
$5,208
$7,504
-$2,296
-$22,960
$150,000
$9,858
$11,777
-$1,919
-$19,190
$250,000
$19,158
$20,469
-$1,311
-$13,110
💡

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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 (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
  • Combined top rate — higher than California across nearly the full income range, only cheaper above roughly $445K
  • Property tax ~0.92% average, higher than California's Prop 13 rate
  • Very low standard deduction ($3,350 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 calculator uses a representative 3.2% county rate — the rate charged by Maryland's most populous counties, including Montgomery and Prince George's — blended into the state brackets. For a single filer earning $100,000, Maryland residents pay approximately $7,504 in combined state and county tax versus California's $5,208. Maryland only becomes cheaper than California at much higher incomes — roughly above $445,000 — 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 free calculator blends 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 — directly into the state brackets, so the county tax is not a separate line item but is already included in the figures shown here.

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 — 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 $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. 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 9.7% 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?

California is actually the cheaper state at every income level tested here — it doesn't need to 'become' cheaper because it already is. Using the calculator's representative 3.2% Maryland county rate, California's income tax is lower all the way up to roughly $445,000. California's more gradual bracket progression, combined with Maryland's mandatory county tax, means Maryland's combined state-plus-county burden stays higher through the six-figure range — for example, California costs $19,158 versus Maryland's $20,469 at $250,000. Only above roughly $445,000 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 $5,706 for single filers and $11,412 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, plus a separate $3,200 personal exemption that steps down in tiers rather than phasing out linearly — $3,200 below $100,000 of income, $1,600 from $100,000–$124,999, $800 from $125,000–$149,999, and $0 at $150,000 and above (single filer). Maryland's base deduction ($3,350) is still lower than California's ($5,706), 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.
From the brief
NL27%new 2027 rate, down from 30%
DK65.4kkr/mo threshold, cut from 78k
MT1940snon-dom regime unchanged since
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