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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Maryland VS COUNTRY B Virginia

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

Daniel · CountryTaxCalc Updated May 2026 Income tax verified October 2026 Tax Comparison 2026
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OVERVIEW
Maryland's income tax combines progressive state rates (2-6.5%) with a county income tax charged on Maryland taxable net income. County rates for 2026 range from 2.25% (Worcester, the lowest) to 3.30% (Dorchester and Kent, the highest), with Anne Arundel and Frederick using graduated rates. This page uses 3.20%, the rate in Montgomery, Baltimore City and County, Howard, Prince George's and several other counties, as a representative case, so it is an illustration and not every county. On $100k, Maryland state tax is $4,384 plus $2,989 county tax, or $7,373 combined, while Virginia charges progressive state rates from 2% to 5.75% with no local income tax ($4,936). Living in Virginia saves about $2,437/year on $100k income compared to this Maryland case. Virginia also has lower property taxes (0.80% vs MD's 0.92%). Sales taxes are nearly identical (MD 6% vs VA 5.30%). The MD-VA border is critical for DC area federal employees.
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%

🏛️
COUNTRY B
Virginia
TAX RATE
2-5.75%
Progressive

4 brackets, up to 5.75%

TYPICAL ANNUAL DIFFERENCE
Moving from Virginia → Maryland at $100,000
$2,437

That's $203/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
🏛️ VA TAX
SAVINGS
10-YEAR
$50,000
$3,398
$2,061
$1,337
$13,370
$100,000
$7,373
$4,936
$2,437
$24,370
$200,000
$16,114
$10,686
$5,428
$54,280
$500,000
$42,831
$27,936
$14,895
$148,950
💡

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🦀

Maryland Pros & Cons

+ PROS
  • Better transit: DC Metro extends further into MD (vs VA limited)
  • Better schools: Montgomery County #2 in US, Howard County #5
  • More diverse: MD more multicultural than VA suburbs
  • Stronger economy: Biotech corridor (Rockville, Gaithersburg)
  • Chesapeake Bay: Crab, seafood, beach access (Ocean City)
− CONS
  • Higher income tax: Maryland state tax plus a 3.20% county tax (Montgomery-type rate) vs VA's 2-5.75% costs about $2,437 more on $100k
  • Higher property tax: 0.92% (vs VA 0.80%) costs $300-$1,200 more/year
  • Expensive: Montgomery County median $625k (vs Fairfax $650k similar)
  • Traffic: I-270, I-95 congestion worse than VA
  • High cost of living: Overall 12% more expensive than VA
🏛️

Virginia Pros & Cons

+ PROS
  • Lower income tax: 2-5.75% state rate (vs Maryland state tax plus a 3.20% county tax) saves about $2,437 on $100k
  • Lower property tax: 0.80% (vs MD 0.92%) saves $300-$1,200/year
  • Tech hub: Tysons, Reston (Amazon HQ2, capital One)
  • Lower cost of living: 12% cheaper than MD overall
  • Business-friendly: Lower regulations than MD
− CONS
  • Higher sales tax: 5.30% (vs MD 6.00%)—actually MD is higher
  • Limited transit: DC Metro less extensive in VA (Arlington/Alexandria only)
  • More conservative: VA politically different from MD progressive
  • Worse schools: Fairfax #24 (vs Montgomery #2, Howard #5)
  • Car inspection: Annual safety inspection required
FAQ

Frequently Asked Questions

How much will I save living in Virginia vs Maryland as a federal employee?

On a $100,000 federal salary, Virginia saves about $2,437/year in income tax (Virginia's 2-5.75% rates vs Maryland state tax plus a 3.20% county tax; counties range 2.25%-3.30%). VA also has lower property tax (0.80% vs MD 0.92%). On a $500k home, VA pays $4,000/year vs MD $4,600/year, a difference of $600/year. Total savings: about $3,037/year. Over 10 years: about $30,370. Many federal employees live in VA and commute to DC via Metro/I-66.

What is Maryland's county income tax?

Maryland has a progressive state income tax (2-6.5%) plus a county income tax that every resident pays, calculated on Maryland taxable net income. For 2026 county rates range from 2.25% (Worcester, the lowest) to 3.30% (Dorchester and Kent, the highest); Anne Arundel and Frederick use graduated rates. This page uses 3.20%, the rate in Montgomery, Baltimore City and County, Howard, Prince George's and several other counties, as a representative case. At $100k income that is about $4,384 state tax plus $2,989 county tax, or $7,373 combined. Virginia has NO local income tax, only a 2-5.75% state rate ($4,936 at $100k). Your own county's rate will move the result.

Is there significant Maryland-Virginia migration in the DMV area?

Yes, bidirectional but net VA gains. In 2023, 12,847 people moved MD → VA (vs 9,472 VA → MD), net gain of 3,375 for Virginia. Migration drivers MD → VA: lower taxes ($3,037/year savings), lower cost of living (12% cheaper), Amazon HQ2 jobs (Arlington). Migration drivers VA → MD: better transit (Metro), better schools (Montgomery County), biotech jobs.

Which state is better for DC area federal employees?

Virginia wins for taxes: $3,037/year savings at $100k, 12% lower cost of living, Amazon HQ2 proximity. Maryland wins for: better Metro access (Silver Spring, Rockville), top schools (Montgomery #2, Howard #5), biotech jobs. Most GS-13+ federal employees choose VA for tax savings. Families with kids choose MD for schools. Security clearance holders cluster in both (Fort Meade MD, Pentagon VA).
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