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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Maryland VS COUNTRY B Delaware

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

Daniel · CountryTaxCalc Updated October 2026 Income tax verified October 2026 Tax Comparison 2026
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OVERVIEW
Maryland's income tax combines progressive state rates from 2% to 6.5% with a mandatory county income tax of 2.25%-3.30% of Maryland taxable net income (Worcester is lowest at 2.25%, Dorchester and Kent highest at 3.30%; Anne Arundel and Frederick use graduated county rates). This comparison uses a 3.20% county rate as a representative case, the rate charged by Montgomery, Baltimore City, Baltimore County, Howard, Prince George's and several other counties. It is an illustration, not every county, so your own county's rate will move the Maryland figure. Delaware charges progressive rates from 2.2% to 6.6%, net of a $110 personal credit. On $100k of income (single filer, standard deduction), Maryland state plus 3.20% county tax comes to about $7,373 versus $5,259 in Delaware, a gap of about $2,114/year. Delaware's other advantage is no sales tax (vs MD's 6%), and its property taxes are lower (0.54% vs MD's 0.92%). The MD-DE border is popular for tax planning, especially for retirees.
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
Maryland
TAX RATE
2-6.5%
Progressive + County Tax

State 2-6.5% + County 2.25-3.3% of MD taxable income

🦅
COUNTRY B
Delaware
TAX RATE
2.2-6.6%
Progressive

7 brackets, up to 6.6%

TYPICAL ANNUAL DIFFERENCE
Moving from Delaware → Maryland at $100,000
$2,114

That's $176/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
🦀 MD TAX
🦅 DE TAX
SAVINGS
10-YEAR
$50,000
$3,398
$2,098
$1,300
$13,000
$100,000
$7,373
$5,259
$2,114
$21,140
$200,000
$16,114
$11,859
$4,255
$42,550
$500,000
$42,831
$31,659
$11,172
$111,720
💡

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🦀

Maryland Pros & Cons

+ PROS
  • Better job market: Baltimore/DC access (3M+ metro vs Wilmington 720K)
  • Better schools: Montgomery County #2, Howard County #5 in US
  • More amenities: Baltimore culture, restaurants, sports teams
  • Chesapeake Bay: Crab, seafood, beach access (Ocean City)
  • Better transit: DC Metro, MARC trains
− CONS
  • Higher income tax: Maryland state tax plus a 3.20% county tax (representative case) vs Delaware's net rate costs about $2,114 on $100k
  • Sales tax: 6% (vs DE 0%) costs $600/year on $10k spending
  • Higher property tax: 0.92% (vs DE 0.54%) costs $950-$3,800 more/year
  • Expensive: Overall 15% more expensive than Delaware
  • High cost of living: Housing, food, services all pricey
🦅

Delaware Pros & Cons

+ PROS
  • NO SALES TAX: $0 vs MD 6% saves $600/year on $10k spending
  • Lower income tax: Delaware's net rate (vs Maryland state tax plus a 3.20% county tax) saves about $2,114 on $100k
  • Much lower property tax: 0.54% (vs MD 0.92%) saves $950-$3,800/year
  • Corporate haven: LLC formation capital, business-friendly
  • Beach access: Rehoboth, Bethany Beach (Delaware beaches)
− CONS
  • Limited job market: Wilmington only 720K metro (vs MD 6M Baltimore/DC)
  • Smaller state: Fewer amenities, entertainment options
  • Limited transit: Car-dependent, no Metro
  • Commuter challenges: Long drives to Baltimore/DC
  • Higher income tax at high incomes: 6.6% vs MD 6.5% state (but county tax of 2.25-3.3% makes MD higher overall)
FAQ

Frequently Asked Questions

How much will I save moving from Maryland to Delaware?

On $100,000 income, Delaware saves about $2,114/year in income tax (Delaware's net tax of $5,259 vs Maryland state tax of $4,384 plus a representative 3.20% county tax of $2,989, total $7,373; your county's rate, 2.25%-3.30%, will change this). DE has NO SALES TAX (saves $600/year vs MD 6%). Property tax savings are large: DE 0.54% vs MD 0.92%. On a $500k home, DE pays $2,700/year vs MD $4,600/year, a difference of $1,900/year. Total savings: about $4,614/year. Over 10 years: about $46,140.

Why do retirees move from Maryland to Delaware?

Tax savings and beach access. Delaware has a lower net income tax than Maryland's state-plus-county tax, NO sales tax (vs MD 6%), and much lower property tax (0.54% vs 0.92%). For a retiree with $80k pension + $400k home, the combined savings from lower income tax, no sales tax, and lower property tax commonly add up to several thousand dollars a year. Plus Rehoboth/Bethany Beach proximity. Many MD retirees move to DE coastal towns.

Is there significant Maryland to Delaware migration?

Yes, especially among retirees. In 2023, 8,472 people moved MD → DE (vs 4,134 DE → MD), net gain of 4,338 for Delaware. Migration drivers MD → DE: tax savings (about $4,614/year at $100k), no sales tax, Delaware beaches, lower cost of living (15% cheaper). Reverse migration (DE → MD) driven by: job opportunities (Baltimore/DC), better schools, more amenities.

Can I work in Maryland and live in Delaware to avoid MD taxes?

No—Maryland will tax MD-source income regardless of residency. If you work in MD but live in DE, you pay MD income tax on those wages. However, you save on: DE's no sales tax (vs MD 6%), lower property tax (0.54% vs 0.92%), and any non-MD income is only taxed by DE at lower rates. Best strategy: work remotely for non-MD company while living in DE.
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