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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Georgia VS COUNTRY B Maryland

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

Daniel · CountryTaxCalc Updated August 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
Georgia's flat 4.99% income tax is far simpler and considerably cheaper than Maryland's 10-bracket state structure, which is compounded by a mandatory local county tax (2.25%-3.3%) that every Maryland resident must pay on top of the state rate. At $100,000 income, Georgia's state tax bill ($3,388) is $2,978/year lower than Maryland's combined state-plus-county bill ($6,366), and the gap widens to nearly $16,900/year at $500,000. Georgia's average effective property tax rate (~0.87%) is also meaningfully lower than Maryland's (~1.09%), so property tax does not flip the comparison at any home value. Maryland has no local income tax outside its mandatory county system, but that system itself functions like a universal local tax that Georgia simply doesn't have. On retirement income, Georgia fully exempts Social Security at any age and excludes up to $65,000 of retirement income for residents 65+, while Maryland exempts Social Security only below $50,000 in Maryland AGI and offers a smaller $34,300 pension deduction for residents 65+.
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
Georgia
TAX RATE
4.99%
Flat Tax (2026)
Flat 4.99% for 2026, reached under HB 463 (down from 5.49% in 2024); no local income tax anywhere
🦀
COUNTRY B
Maryland
TAX RATE
2-6.5%
10-Bracket Progressive + County Tax
10 state brackets (2%-6.5%) plus mandatory county tax (2.25%-3.3%), among the most complex structures in the country
TYPICAL ANNUAL DIFFERENCE
Moving from Maryland → Georgia at $100,000
$2,978
That's $248/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
🍑 GA TAX
🦀 MD TAX
SAVINGS
10-YEAR
$50,000
$893
$2,541
$1,648
$16,480
$75,000
$2,141
$4,453
$2,312
$23,120
$100,000
$3,388
$6,366
$2,978
$29,780
$150,000
$5,883
$10,298
$4,415
$44,150
$250,000
$10,873
$18,658
$7,785
$77,850
$500,000
$23,348
$40,242
$16,894
$168,940
💡

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🍑

Georgia Pros & Cons

+ PROS
  • Flat 4.99% rate is far simpler and cheaper than Maryland's combined state-plus-county structure at every income level — saving $1,648 to $16,894/year
  • No local income tax anywhere in Georgia — Maryland's mandatory county tax (2.25%-3.3%) functions as a universal local tax layered on every resident
  • Lower average property tax (~0.87%) than Maryland (~1.09%)
  • Generous retirement deduction (up to $65,000 for residents 65+, $130,000 for couples) and Social Security exempt at any age
− CONS
  • Under-65 residents get no retirement-income exclusion — 401(k), IRA, and pension withdrawals are fully taxed at 4.99% until age 65
  • Atlanta's highway congestion (I-285, I-85, I-75, I-20) routinely ranks among the worst in the Southeast
  • Georgia's flat tax only reached its 4.99% floor in 2026 under HB 463 — a much more recent reform than Maryland's long-standing bracket structure
  • Smaller concentration of federal-government and defense-contractor jobs than Maryland's DC-suburb corridor
🦀

Maryland Pros & Cons

+ PROS
  • DC suburbs (Montgomery and Prince George's counties) offer dense federal-government, biotech (NIH corridor), and defense-contractor employment (Lockheed, Northrop Grumman) with high salaries
  • Social Security is fully exempt for households with Maryland AGI under $50,000
  • Taxpayers 65+ can deduct up to $34,300 of pension/retirement income (2026 amount, indexed to inflation)
  • Johns Hopkins University and Hospital anchor a strong biotech and healthcare research economy
− CONS
  • 10-bracket state structure plus a mandatory 2.25%-3.3% county tax makes Maryland's system both more complex and more expensive than Georgia's flat rate — costing residents $1,648 to $16,894/year more across the income range shown
  • Social Security becomes fully taxable once household Maryland AGI exceeds $50,000, unlike Georgia's exemption at any income level
  • Higher average property tax (~1.09%) than Georgia (~0.87%)
  • High cost of living in the DC-suburb corridor often offsets some of the area's salary advantage
FAQ

Frequently Asked Questions

Is Georgia or Maryland cheaper for state income tax?

Georgia is significantly cheaper at every income level. At $100,000, Georgia's flat 4.99% costs $3,388 versus Maryland's combined state-plus-county bill at $6,366 — a $2,978/year difference. At $500,000, the gap grows to nearly $16,900/year. Maryland's mandatory county income tax, layered on top of its 10 state brackets, is the main driver of the gap.

What is Maryland's county income tax, and does everyone pay it?

Yes — every Maryland resident pays a county (or Baltimore City) income tax in addition to the state rate, ranging from 2.25% to 3.3% depending on where they live. The $6,366 figure at $100,000 income already includes the average county rate of about 2.9%. Residents of higher-tax counties like Baltimore City or Montgomery County pay closer to the 3.3% end of that range.

Which state has lower property tax, Georgia or Maryland?

Georgia has the lower average effective property tax rate at roughly 0.87%, compared to Maryland's roughly 1.09%. On a $400,000 home, that's about $3,480/year in Georgia versus $4,360/year in Maryland — a savings of about $880/year that adds to Georgia's already large income-tax advantage rather than offsetting it.

Does either state tax Social Security and retirement income?

Georgia fully exempts Social Security at any age and excludes up to $65,000 of retirement income for residents 65+ ($130,000 for couples). Maryland exempts Social Security only if household Maryland AGI is under $50,000 — above that, it's fully taxable — and offers a smaller $34,300 pension deduction for residents 65+. Georgia is meaningfully more retirement-friendly for most income levels.

How much would I save moving from Maryland to Georgia?

At $100,000 income, moving from Maryland to Georgia could save about $2,978/year in state and local income tax combined. At $250,000 income, savings grow to about $7,785/year, and at $500,000 the gap widens to roughly $16,894/year — one of the largest state-tax differentials among comparable-sized states.

Is the DC suburbs or Atlanta better for job opportunities?

Maryland's DC suburbs (Montgomery and Prince George's counties) offer dense federal-government, biotech, and defense-contractor employment with some of the highest salaries in the country, anchored by NIH, Johns Hopkins, and major contractors like Lockheed Martin and Northrop Grumman. Atlanta has a broader corporate and logistics job market (Coca-Cola, Delta, Home Depot, UPS) at a generally lower cost of living than the DC corridor.

Why does Maryland's system feel more complex than Georgia's?

Maryland stacks 10 separate state income-tax brackets (2% to 6.5%) on top of a mandatory county tax that varies by jurisdiction (2.25%-3.3%), meaning your total rate depends on both your income and which of Maryland's 24 counties (or Baltimore City) you live in. Georgia's flat 4.99% rate applies uniformly statewide with no local add-on, making it far simpler to calculate and compare across residents.

Does Georgia's flat tax rate keep dropping?

Georgia's flat rate has been phasing down under HB 463 since 2024, when it started at 5.49%. It reached its legislated floor of 4.99% in 2026. Unless the legislature passes new tax cuts, 4.99% is expected to be the stable rate going forward, giving Georgia residents more predictability than Maryland's bracket-and-county system.
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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