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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Colorado VS COUNTRY B Maryland

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

Daniel · CountryTaxCalc Updated June 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
Colorado has a flat 4.4% income tax, while Maryland has a dual-layer income tax: a state progressive rate reaching 6.5% plus a mandatory county income tax of 2.25% to 3.2% (depending on county), collected on the same state return. The combined effective rate for most Maryland residents is approximately 8.95% to 9.7%. On $100,000 income, Colorado residents pay approximately $4,286 less per year. Colorado also has lower property taxes (0.55% vs MD 1.09%) and lower housing costs in most markets. Maryland's DC corridor location and federal government employment create salary premiums that partially offset the tax gap for many residents.
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
Colorado
TAX RATE
4.4%
Flat Rate
4.4% flat (protected by TABOR)
🦀
COUNTRY B
Maryland
TAX RATE
2-6.5%
Progressive
plus county tax (2.25-3.2%)
TYPICAL ANNUAL DIFFERENCE
Moving from Maryland → Colorado at $100,000
$4,286
That's $357/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
⛷️ CO TAX
🦀 MD TAX
SAVINGS
10-YEAR
$50,000
$2,068
$4,250
$2,182
$21,820
$100,000
$4,154
$8,440
$4,286
$42,860
$200,000
$8,714
$17,890
$9,176
$91,760
$500,000
$21,934
$46,490
$24,556
$245,560
💡

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⛷️

Colorado Pros & Cons

+ PROS
  • Much lower income tax: 4.4% flat vs MD effective 8.95%+ saves $4,286/year on $100k
  • TABOR protection: Constitutional limit prevents income tax increases without voter approval
  • Lower property tax: 0.55% vs MD 1.09% saves $2,160/year on $400k home
  • No county income tax: Colorado has no mandatory local income tax layer like Maryland
  • Mountain lifestyle: Rocky Mountain recreation, skiing, hiking, 300+ sunshine days
− CONS
  • No DC job market access: Maryland's proximity to federal agencies and Pentagon is unique
  • Distance from East Coast: Moving away from Atlantic corridor cultural and economic density
  • Denver growing costs: Some Denver suburbs approaching Maryland suburban prices
  • Less transit infrastructure: Maryland/DC Metro system more extensive than Denver RTD
  • Altitude adjustment: Colorado's mile-high climate is a lifestyle change for East Coasters
🦀

Maryland Pros & Cons

+ PROS
  • DC proximity: 20-40 minutes from federal agencies, Pentagon, NSA headquarters in Fort Meade
  • Federal salary premium: DC metro federal and contractor salaries among highest locality pay in US
  • Excellent schools: Montgomery County, Howard County schools consistently ranked top 10 nationally
  • Baltimore inner harbor and Chesapeake Bay: Unique coastal and urban lifestyle
  • Dense healthcare: Johns Hopkins, University of Maryland Medical System, NIH campus in Bethesda
− CONS
  • Mandatory county income tax: Every Maryland resident pays county tax (2.25-3.2%) IN ADDITION to state income tax — no opt-out
  • Combined income tax rate: Montgomery County residents pay 6.5% + 3.2% = 9.7% effective top rate
  • Higher property tax: 1.09% vs CO 0.55% costs $2,160 more/year on $400k home
  • Traffic congestion: I-270, I-695, I-95 among worst congested corridors in the US
  • High cost of living: Montgomery, Howard, and Anne Arundel counties are among priciest suburban markets
FAQ

Frequently Asked Questions

What is Maryland's county income tax and why is it mandatory?

Maryland's county income tax is a piggyback tax levied by all 23 counties and Baltimore City, collected alongside the state income tax on the same Maryland state tax return. Rates range from 2.25% (Carroll County) to 3.2% (multiple counties including Montgomery, Prince George's). Every Maryland resident must pay this — there is no opt-out. The result: a Montgomery County resident earning $100k pays 6.5% state + 3.2% county = 9.7% combined, more than double Colorado's 4.4%.

Which Maryland county has the lowest income tax rate?

Carroll County has the lowest Maryland county income tax at 2.25%. Worcester and St. Mary's counties are also at 2.25%. However, even at the lowest county rate, Maryland residents pay 6.5% state + 2.25% county = 8.75% effective top rate on higher income — still twice Colorado's 4.4% flat rate. Montgomery County (where many federal workers live) charges 3.2%, creating a combined 9.7% rate.

How much do Maryland homeowners save by moving to Colorado?

A $100k earner with a $400k home: Maryland income tax ~$8,440 + property tax ~$4,360 = $12,800/year. Colorado income tax ~$4,154 + property tax ~$2,200 = $6,354/year. Annual savings in Colorado: $6,446. Over 10 years: $64,460. For a $200k earner with a $600k home: MD $17,890 + $6,540 = $24,430 vs CO $8,714 + $3,300 = $12,014. Annual savings $12,416; 10-year savings $124,160.

Is Maryland's tax burden offset by federal government salary premiums?

Partially. The Washington-Baltimore Combined Statistical Area has among the highest federal salary locality pay (around 33% above base GS scales). A GS-13 Step 5 in DC metro earns ~$127k vs ~$104k in Denver metro — a $23k salary difference. The tax gap on $100k income is $4,286/year. At higher salaries ($150-200k), the federal salary premium may still cover the tax difference. But for private-sector employees, remote workers, and retirees, Maryland's dual-layer tax with no federal salary offset makes Colorado far more attractive.
From the brief
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