Compare taxes and see how much you save moving from Maryland to Pennsylvania
Pennsylvania’s flat 3.07% income tax is dramatically lower than Maryland’s combined state and local rate of up to 8.95%. A $100,000 earner outside Philadelphia saves $5,881 per year by living in Pennsylvania. Maryland also levies an estate tax on estates above $5 million, while Pennsylvania instead charges an inheritance tax (4.5% to children, 12% to siblings, 15% to others). Property taxes slightly favour Maryland (1.09% vs PA’s 1.49%), partially offsetting the income tax gap for homeowners.
Plus County/City Tax
State 2-5.75% + local 2.25-3.2% = combined up to 8.95% in Baltimore City
Flat Rate (Outside Philly)
Flat 3.07% statewide; Philadelphia residents add 3.75% wage tax on top
At $100,000 income:
That is $490/month back in your pocket!
| Income | MD Tax | PA Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $4,355 | $1,535 | $2,820 | $28,200 |
| $75,000 | $6,653 | $2,303 | $4,350 | $43,500 |
| $100,000 | $8,951 | $3,070 | $5,881 | $58,810 |
| $150,000 | $13,546 | $4,605 | $8,941 | $89,410 |
| $250,000 | $22,736 | $7,675 | $15,061 | $150,610 |
| $500,000 | $45,961 | $15,350 | $30,611 | $306,110 |
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Moving between states? Multi-state returns, partial-year residency, and domicile changes are complex. TaxHub connects you with licensed CPAs who specialise in state tax moves.
Talk to a CPA About Your State Move →At $100,000 income, you save approximately $5,881 per year ($490/month) by living in Pennsylvania outside Philadelphia. Maryland charges up to 5.75% state + ~3.2% county = ~8.95% combined. Pennsylvania charges a flat 3.07%. Over 10 years that’s $58,810 in savings on income tax alone.
Pennsylvania does not have an estate tax, but it does levy an inheritance tax. Transfers to children and grandchildren are taxed at 4.5%, siblings at 12%, and all other beneficiaries at 15%. Spouses and charities are exempt. Maryland, by contrast, has a state estate tax on estates above $5 million (rates up to 16%) but no inheritance tax.
No. Philadelphia residents pay the state’s 3.07% flat income tax plus Philadelphia’s city wage tax of 3.75% (residents), for a combined rate of about 6.82%. That still beats Maryland’s top combined rate of 8.95%, but the advantage narrows significantly compared to living elsewhere in Pennsylvania.
Maryland has a lower average effective property tax rate at 1.09% compared to Pennsylvania’s 1.49%. On a $400,000 home, Maryland costs about $4,360/year in property tax vs Pennsylvania’s $5,960/year. This partially offsets Pennsylvania’s income tax advantage for homeowners, but the income tax savings still dominate for most earners.