Maryland has progressive state income tax rates from 2% to 5.75% PLUS county taxes of 2.25% to 3.2%, while Virginia charges progressive state rates from 2% to 5.75% with no local income tax. Living in Virginia saves $1,700/year on $100k income compared to Maryland. Virginia has lower property taxes (0.80% vs MD's 1.09%). Sales taxes are nearly identical (MD 6% vs VA 5.30%). Overall, Virginia offers better tax advantages for DMV area residents. The MD-VA border is critical for DC area federal employees.

By Daniel, Founder of CountryTaxCalc

Daniel has spent 5+ years researching tax systems across 95+ countries and all US states to make tax comparison accessible to everyone. For corrections, contact us.

Last Updated: April 2026

The Big Picture

🦀 Maryland

2-5.75%

Progressive + County Tax

State 2-5.75% + County 2.25-3.2%

🏛️ Virginia

2-5.75%

Progressive

4 brackets, up to 5.75%

Typical Annual Savings

At $100,000 income:

$1,700

That is $142/month back in your pocket!

Tax Savings by Income Level

IncomeMD TaxVA TaxSavings10-Year
$50,000 $3,475$2,875$600$6,000
$100,000 $7,450$5,750$1,700$17,000
$200,000 $16,200$11,500$4,700$47,000
$500,000 $43,000$28,750$14,250$142,500
💡

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

★ 4.8 verified reviews  ·  3,758 reviews

Moving between Maryland and Virginia? DMV area moves are tricky—MD county tax, partial-year residency, DC locality pay. Get matched with a CPA who understands federal employee tax issues.

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

Get Matched With a CPA →

Maryland Pros and 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: 8.95% combined (state + county) vs VA 5.75% costs $1,700 on $100k
  • Higher property tax: 1.09% (vs VA 0.80%) costs $725-$2,900 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 and Cons

✅ Pros

  • Lower income tax: 5.75% state (vs MD 8.95% combined) saves $1,700 on $100k
  • Lower property tax: 0.80% (vs MD 1.09%) saves $725-$2,900/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

Frequently Asked Questions

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

On $100,000 federal salary, Virginia saves $1,700/year in income tax (VA 5.75% vs MD 8.95% combined state + county). VA also has lower property tax (0.80% vs MD 1.09%). On a $500k home, VA pays $4,000/year vs MD $5,450/year—difference of $1,450/year. Total savings: $3,150/year. Over 10 years: $31,500. Many federal employees live in VA and commute to DC via Metro/I-66.

Q: What is Maryland's county income tax?

Maryland has state income tax (2-5.75%) PLUS mandatory county income tax (2.25-3.2%). Montgomery County charges 3.2% county tax, Howard County 3.2%, Prince George's 3.2%. Combined rate in these counties: 8.95% at $100k income. Virginia has NO local income tax—only state 5.75%. This county tax makes MD significantly more expensive for DMV residents.

Q: 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 ($3,150/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.

Q: Which state is better for DC area federal employees?

Virginia wins for taxes: $3,150/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).

Related Comparisons

Virginia vs TexasMaryland vs DelawareMaryland CalculatorVirginia CalculatorAll State Comparisons