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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Maryland VS COUNTRY B Tennessee

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

Daniel · CountryTaxCalc Updated October 2026 Income tax verified October 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
Maryland taxes income through a 10-bracket progressive schedule running from 2% on the first $1,000 up to 6.5% on taxable income above $1,000,000 (single filer), following two new top brackets — 6.25% above $500,000 and 6.5% above $1,000,000 — added by the Budget Reconciliation and Financing Act of 2025. On top of the state rate, every Maryland resident also owes a mandatory county 'piggyback' income tax that ranges from 2.25% to 3.3% depending on county of residence — the free calculator blends this in using a representative 3.2% rate, the rate charged by Maryland's most populous counties, directly into the state brackets. Tennessee charges 0% state income tax — the Hall Income Tax on interest and dividends was fully repealed effective January 1, 2021, so Tennessee levies no personal income tax on wages, salaries, retirement, or investment income of any kind. At $100,000 income, Maryland's combined state-plus-county tax is $7,373 versus $0 in Tennessee — a savings of $7,373/year. Tennessee's tradeoff is its sales tax: at 9.61% average combined state-and-local, it's the highest in the nation, and unlike most no-income-tax states, Tennessee also taxes groceries (at a reduced 4% state rate).
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%
State Rate (+ County Tax)

10-bracket state tax from 2% to 6.5%, plus a mandatory county 'piggyback' tax of 2.25%-3.3%

🎸
COUNTRY B
Tennessee
TAX RATE
0%
No Income Tax

0% income tax, funded by the nation's highest average combined sales tax

TYPICAL ANNUAL DIFFERENCE
Moving from Tennessee → Maryland at $100,000
$7,373

That's $614/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
🎸 TN TAX
SAVINGS
10-YEAR
$50,000
$3,398 (6.8% eff., state + 3.2% county)
$0 (0%)
Tennessee saves $3,398+
$33,980
$100,000
$7,373 (7.4% eff., state + 3.2% county)
$0 (0%)
Tennessee saves $7,373+
$73,730
$200,000
$16,114 (8.1% eff., state + 3.2% county)
$0 (0%)
Tennessee saves $16,114+
$161,140
$500,000
$42,831 (8.6% eff., state + 3.2% county)
$0 (0%)
Tennessee saves $42,831+
$428,310
💡

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🦀

Maryland Pros & Cons

+ PROS
  • DC/Baltimore corridor access: Proximity to federal government jobs, biotech (Rockville, Gaithersburg), and Johns Hopkins-anchored healthcare and research
  • Top-ranked public schools: Montgomery and Howard counties consistently rank among the best school districts in the country
  • Chesapeake Bay lifestyle: Waterfront access, seafood, and Ocean City beaches within driving distance
  • Dense healthcare infrastructure: A high concentration of specialists and top hospital systems per capita
  • Federal employee-friendly: A large share of the workforce works in or near DC, with strong locality pay
− CONS
  • State income tax up to 6.5%, plus mandatory county tax: The 2025 Budget Reconciliation and Financing Act added new 6.25%/6.5% top brackets; county piggyback tax (2.25%-3.3%, calculator uses a representative 3.2%) is blended directly into the state return
  • High cost of living: Housing in the DC/Baltimore corridor runs well above the national average
  • Above-average property taxes: ~0.92% average effective rate
  • Traffic congestion: I-270, I-95, and Capital Beltway corridors are among the most congested in the country
  • County tax rates are not uniform: Your actual rate depends on which of Maryland's 23 counties (or Baltimore City) you live in, adding complexity to tax planning
🎸

Tennessee Pros & Cons

+ PROS
  • Zero state income tax: No tax on wages, salaries, retirement income, or investment gains since the Hall Tax's full repeal in 2021
  • Low property taxes: ~0.52% average effective rate, well below Maryland's
  • Nashville's booming economy: Healthcare, music/entertainment, and a fast-growing tech and logistics sector
  • Simpler tax filing: No state or county income tax return required at all
  • Lower overall cost of living than Maryland, especially housing
− CONS
  • Highest combined sales tax in the US: ~9.61% average combined state and local rate
  • Groceries are taxed: A reduced 4% state rate applies to food, plus local tax, unlike most other no-income-tax states
  • Fewer federal government and biotech-anchored jobs concentrated in one metro area
  • Hot, humid summers: A significant adjustment for those used to the Mid-Atlantic climate
  • Distance from Mid-Atlantic family and professional networks: A long move for most Maryland residents
FAQ

Frequently Asked Questions

How much will I save moving from Maryland to Tennessee?

At $100,000 income, Maryland's blended state-plus-county tax (calculated using a representative 3.2% county rate) comes to $7,373 versus $0 in Tennessee — a savings of $7,373/year, or $614/month. At $500,000, savings reach $42,831/year.

What are Maryland's income tax brackets for 2026?

Maryland uses 10 progressive state brackets for single filers: 2% up to $1,000; 3% from $1,000-$2,000; 4% from $2,000-$3,000; 4.75% from $3,000-$100,000; 5% from $100,000-$125,000; 5.25% from $125,000-$150,000; 5.5% from $150,000-$250,000; 5.75% from $250,000-$500,000; 6.25% from $500,000-$1,000,000; and 6.5% above $1,000,000. The two top brackets (6.25% and 6.5%) were added by the Budget Reconciliation and Financing Act of 2025, signed May 27, 2025 and effective for tax years beginning after December 31, 2024, per the Comptroller of Maryland.

Why does this comparison use Maryland's state-only tax rate instead of including county tax?

This comparison previously used Maryland's state-only brackets as a placeholder while the free calculator's engine didn't yet model county tax at all. That gap has now been fixed: the calculator blends a representative 3.2% county rate — the rate charged by Maryland's most populous counties, including Montgomery, Prince George's, and Baltimore City — directly into Maryland's state tax brackets, so the $7,373 figure shown above at $100,000 income is already a full combined state-plus-county estimate, not a state-only figure. Real county rates still vary from 2.25% (Worcester, the lowest) to 3.3% (Dorchester and Kent, the highest); check your specific county's current rate with the Comptroller of Maryland for an exact figure.

How do property taxes compare between Maryland and Tennessee?

Maryland's average effective property tax rate is about 0.92% of home value — on a $500,000 home, roughly $4,600/year. Tennessee's average effective rate is about 0.52%, or roughly $2,600/year on the same home, per Tax Foundation data.

Does Tennessee really have no income tax at all?

Yes. Tennessee's only historical income tax — the Hall Income Tax on interest and dividend income — was phased out one percentage point per year starting in 2016 and fully repealed effective January 1, 2021. Since then, Tennessee has levied no personal income tax on any form of income, per the Tennessee Department of Revenue. It funds government primarily through sales tax, which combines for the highest average rate in the nation at 9.61%.

Should I move from Maryland to Tennessee to save on taxes?

For most Maryland residents, yes — the combined savings are substantial. At $100,000 income, moving to Tennessee saves $7,373/year on income tax alone, plus roughly $2,000/year more on property tax on a $500,000 home (Maryland's ~0.92% average effective rate vs Tennessee's ~0.52%). High earners above $500,000, who face Maryland's 6.25%/6.5% top brackets, see the largest dollar savings overall. Remote workers, retirees, and business owners who don't need daily proximity to DC/Baltimore tend to benefit the most from a move to Tennessee.
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