The Tax Brief real effective rates for 111+ countries — bi-weekly, free.
HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Maryland VS COUNTRY B Pennsylvania

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

Daniel · CountryTaxCalc Updated October 2026 Income tax verified October 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
Pennsylvania’s flat 3.07% income tax is lower than Maryland’s state income tax alone, before Maryland’s mandatory county income tax (2.25%-3.3% of Maryland taxable income), which is not included in the figures on this page. A $100,000 earner outside Philadelphia saves at least $1,314 per year in state income tax by living in Pennsylvania, and more once Maryland county tax is added. Maryland levies an estate tax on estates above $5 million and a 10% inheritance tax on some heirs (spouses, children, grandchildren, parents and siblings are exempt), while Pennsylvania charges an inheritance tax (4.5% to children, 12% to siblings, 15% to others). Property taxes slightly favour Maryland (0.92% vs PA’s 1.26%), partially offsetting the income tax gap for homeowners.
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%
Plus County/City Tax

State 2-6.5% + county 2.25-3.3% (county not in the table) = up to 9.8% combined

🔔
COUNTRY B
Pennsylvania
TAX RATE
3.07%
Flat Rate (Outside Philly)

Flat 3.07% statewide; Philadelphia residents add 3.735% wage tax on top

TYPICAL ANNUAL DIFFERENCE
Moving from Maryland → Pennsylvania at $100,000
$1,314

That's $110/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
🔔 PA TAX
SAVINGS
10-YEAR
$50,000
$2,009
$1,535
$474
$4,740
$75,000
$3,197
$2,303
$894
$8,940
$100,000
$4,384
$3,070
$1,314
$13,140
$150,000
$7,040
$4,605
$2,435
$24,350
$250,000
$12,573
$7,675
$4,898
$48,980
$500,000
$26,940
$15,350
$11,590
$115,900
💡

CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools.Learn more about our affiliate partnerships

Talk to a Real CPA

TaxHub

★ 4.8verified reviews  Â·  3,758 reviews

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.

âš  Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.

Talk to a CPA About Your State Move →

Interested in reaching this audience? Advertise on CountryTaxCalc →

🦀

Maryland Pros & Cons

+ PROS
  • Estate tax only above $5M; inheritance tax of 10% applies only to non-exempt heirs (siblings and direct heirs exempt)
  • Lower average property tax rate (0.92% vs PA’s 1.26%)
  • Strong DC-area job market with federal government premium salaries
  • Many Maryland public school districts are well regarded
− CONS
  • High combined income tax up to 9.8% (state 6.5% + county up to 3.3%)
  • Mandatory county income tax on top of the state rate (2.25%-3.3%)
  • Estate tax on estates above $5M (rates up to 16%)
  • Very high cost of living in DC suburbs (among most expensive in USA)
🔔

Pennsylvania Pros & Cons

+ PROS
  • Low flat 3.07% income tax rate — no bracket creep
  • Higher earners save $4,898 to $11,590 per year vs Maryland state tax alone
  • No estate tax — estates pass to heirs free of state estate tax
− CONS
  • Inheritance tax of 4.5% (children), 12% (siblings), 15% (others) — unlike most states
  • Philadelphia city residents face additional 3.735% wage tax (total ~6.8%)
  • Higher average property tax rate (1.26% vs MD’s 0.92%)
  • No deductions or exemptions on PA flat rate — tax applies from first dollar
FAQ

Frequently Asked Questions

How much do I save on income tax moving from Maryland to Pennsylvania?

At $100,000 income, you save approximately $1,314 per year ($110/month) by living in Pennsylvania outside Philadelphia. The Maryland figure is state income tax only; Maryland county income tax (2.25%-3.3%) is extra. Pennsylvania charges a flat 3.07%. Over 10 years that’s $13,140 in savings on income tax alone.

Does Pennsylvania have an estate tax or inheritance tax?

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 a 10% inheritance tax applies to some heirs (spouses, children, grandchildren, parents and siblings are exempt).

Is Pennsylvania income tax cheaper if I live in Philadelphia?

No. Philadelphia residents pay the state’s 3.07% flat income tax plus Philadelphia’s city wage tax of 3.735% (residents), for a combined rate of about 6.8%. That still beats Maryland’s top combined rate of 9.8%, but the advantage narrows significantly compared to living elsewhere in Pennsylvania.

Which state has lower property taxes — Maryland or Pennsylvania?

Maryland has a lower average effective property tax rate at 0.92% compared to Pennsylvania’s 1.26%. On a $400,000 home, Maryland costs about $3,680/year in property tax vs Pennsylvania’s $5,040/year. At $100,000 income the state-only income tax saving is slightly smaller than that $1,360 property tax gap, but Maryland county income tax (2.25%-3.3% of taxable net income, typically more than $2,000 at that income) is not included in the income tax comparison and more than closes it for most homeowners.
From the brief
US$2Mnet worth that triggers the exit tax
AT€100kdeferred gains: yearly proof from July
HU1%proposed wealth tax above 1bn forints
The Tax Brief · Subscribe free

More like this, every two weeks.

Verified rates, real after-tax figures, plain English. Free.

Bi-weekly. No spam. Unsubscribe in one click.