Maryland imposes a combined state and local income tax ranging from 4.25% to 8.95% (state 2-5.75% + local 2.25-3.2%), while Florida has zero state income tax protected by its constitution. A $100,000 earner pays approximately $8,750 in Maryland combined income tax ($5,750 state + $3,000 local) vs $0 in Florida. Retirees face an even starker difference: Maryland taxes all retirement income (pensions, 401k/IRA withdrawals) at the full rate, while Florida has no income tax on any retirement income. Property taxes favor Florida (0.86% vs 1.09%), though Florida's higher median home values partially offset this. Maryland to Florida is one of the most popular retirement relocation routes in America—driven by massive tax savings, warm weather, and proximity to family who also relocated.

By CountryTaxCalc Research Team

Last Updated: March 2026

The Big Picture

🦀 Maryland

2-5.75%

Plus Local Tax

State 2-5.75% + Local 2.25-3.2% = 4.25-8.95% combined

🌴 Florida

0%

No Income Tax

Constitutional prohibition on income tax

Typical Annual Savings

At $100,000 income:

$8,750

That is $729/month back in your pocket!

Tax Savings by Income Level

IncomeMD TaxFL TaxSavings10-Year
$50,000 $4,213 combined$0$4,213$42,130
$75,000 $6,563 combined$0$6,563$65,630
$100,000 $8,750 combined$0$8,750$87,500
$150,000 $13,425 combined$0$13,425$134,250
$250,000 $22,375 combined$0$22,375$223,750
$80K retirement income $7,000 combined$0 (retirees)$7,000$70,000 (retirees)

Maryland Pros and Cons

✅ Pros

  • Proximity to Washington DC (federal government jobs pay premium)
  • Excellent public schools (ranked #2 nationally)
  • Public transit access (Metro) in DC suburbs
  • Strong healthcare (Johns Hopkins, NIH, Walter Reed)
  • Four seasons climate

❌ Cons

  • High combined income tax (state 2-5.75% + local 2.25-3.2% = up to 8.95%)
  • All retirement income taxed at full rate (pensions, 401k/IRA, even Social Security if income high enough)
  • Property tax 1.09% average (17th highest)
  • Very high cost of living (DC suburbs among most expensive in US)
  • Traffic congestion (DC metro area)

Florida Pros and Cons

✅ Pros

  • 0% state income tax (constitutional protection)
  • No tax on retirement income (Social Security, pensions, 401k/IRA)
  • No estate tax or inheritance tax
  • Lower property tax rate (0.86% vs 1.09%)
  • Warm weather year-round, beaches, golf communities

❌ Cons

  • Higher median home values (offsetting some property tax benefit)
  • High homeowners insurance (hurricanes, flooding)
  • Hot, humid summers (90°F+ for 6 months)
  • Hurricane risk (especially coastal areas)
  • Public schools ranked lower than Maryland
💡

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Frequently Asked Questions

Q: How much money will I save moving from Maryland to Florida?

At $100,000 income, you save $8,750 per year ($729/month) on income tax alone moving to Florida. Maryland charges 5.75% state + ~3.2% local = 8.95% combined. Florida charges 0%. Over 10 years, that's $87,500 saved. Property tax savings add another $400-600/year. Retirees with $80,000 retirement income save $7,000/year = $210,000 over 30 years.

Q: Does Maryland tax retirement income?

Yes. Maryland taxes pensions, 401(k)/IRA withdrawals, and investment income at the full combined state + local rate (up to 8.95%). Social Security is taxable if your income exceeds $100,000 (single) or $150,000 (joint). Florida taxes ZERO retirement income. A retiree with $80,000/year from pensions/IRAs pays ~$7,000 in Maryland vs $0 in Florida.

Q: What are Maryland's local income taxes?

Maryland is the only state with mandatory local income tax on top of state tax. Local rates range from 2.25% to 3.2% depending on county. Montgomery, Howard, Prince George's, and Baltimore Counties charge 3.2% (highest). Anne Arundel charges 2.81%. This is added on top of the state rate, creating combined rates up to 8.95%.

Q: What are the property tax differences between Maryland and Florida?

Maryland property tax averages 1.09% of assessed value (17th highest nationally). Florida averages 0.86% (26th highest). On a $400,000 home: MD = $4,360/year, FL = $3,440/year. Florida offers a Homestead Exemption reducing taxable value by $50,000, saving $400-600/year. However, Florida homes often cost 10-20% more than comparable Maryland homes outside DC metro.

Q: Why are so many Maryland retirees moving to Florida?

Tax savings drive the trend. Maryland taxes all retirement income at combined rates up to 8.95%. Florida taxes zero retirement income. A retiree with $80,000/year income saves $7,000/year in FL = $210,000 over 30 years. Add property tax savings, no estate tax in FL, warm weather, golf communities, and proximity (many MD retirees have family who also relocated to FL). It's one of the top retirement migration routes in America.

Q: Do I need to change residency completely to avoid Maryland tax?

Yes. Maryland will tax you as a resident if you maintain domicile there. To establish Florida residency: (1) spend 183+ days in Florida, (2) get Florida driver's license, (3) register to vote in Florida, (4) file Declaration of Domicile with county clerk, (5) move financial accounts, (6) update estate documents. Maryland audits aggressively for high earners—keep a diary of days in each state and evidence of Florida ties.

Q: What is Maryland's estate tax?

Maryland has a state estate tax ranging from 0.8% to 16% on estates exceeding $5 million (2026). This is separate from the federal estate tax. A $10 million estate pays ~$520,000 Maryland estate tax. Florida has no state estate tax or inheritance tax. Wealthy Maryland residents often establish Florida residency before death to save heirs hundreds of thousands or millions of dollars.

Q: Which Florida cities do Maryland retirees move to?

Popular destinations: Naples/Fort Myers (Gulf Coast, upscale), Sarasota/Bradenton (cultural amenities), The Villages (massive 55+ community), Boca Raton/Delray Beach (Atlantic Coast, Jewish community), Jacksonville/St. Augustine (closer to MD, lower costs), Tampa/St. Petersburg (urban amenities + beaches). Many choose based on where Maryland friends/family already relocated, creating Maryland expat communities throughout Florida.

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