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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Ohio VS COUNTRY B Maryland

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

Daniel · CountryTaxCalc Updated August 2026 Tax Comparison 2026
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OVERVIEW
Ohio's simplified 2-bracket income tax (0% on the first $26,050, then 2.75%) is dramatically cheaper than Maryland's mandatory two-tier state-plus-county structure, which combines 10 state brackets (2-6.5%) with an unavoidable county income tax (2.25-3.3%) in every jurisdiction. At $100,000 income, Ohio's state tax bill ($1,591) is $4,775/year lower than Maryland's combined state-plus-county bill ($6,366), and the gap widens to $27,651/year at $500,000. Maryland's average effective property tax rate (about 1.09%) is actually slightly lower than Ohio's (about 1.53%), but the difference is far too small to close a five-figure income-tax gap — at $100,000 income with a $400,000 home, Ohio's combined bill (about $7,711) still beats Maryland's (about $10,726) by roughly $3,000/year. Neither state has a purely optional local income tax: Ohio's 200+ municipalities (Columbus, Cleveland, Cincinnati) levy 1.5-2.5% local tax on residents and commuters, while Maryland's county tax is mandatory statewide with no way to opt out, even in the cheapest counties. On retirement income, Ohio exempts Social Security fully and gives up to a $26,050 deduction for military/public pensions, while Maryland exempts Social Security up to $50,000 in total income and gives a $34,300 deduction for retirees 65+ on other retirement income — both states still tax private pensions and 401(k)/IRA withdrawals beyond those deductions.
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
Ohio
TAX RATE
0-2.75%
2-Bracket Progressive
0% on the first $26,050 of income, then 2.75%; Columbus and other cities add 1.5-2.5% local tax
🦀
COUNTRY B
Maryland
TAX RATE
2-9.05%
10-Bracket + Mandatory County Tax
10 state brackets (2-6.5%) plus mandatory county income tax (2.25-3.3%) in all 23 counties and Baltimore City
TYPICAL ANNUAL DIFFERENCE
Moving from Maryland → Ohio at $100,000
$4,775
That's $398/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
🏈 OH TAX
🦀 MD TAX
SAVINGS
10-YEAR
$50,000
$216
$2,541
$2,325
$23,250
$75,000
$903
$4,453
$3,550
$35,500
$100,000
$1,591
$6,366
$4,775
$47,750
$150,000
$2,966
$10,298
$7,332
$73,320
$250,000
$5,716
$18,658
$12,942
$129,420
$500,000
$12,591
$40,242
$27,651
$276,510
💡

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🏈

Ohio Pros & Cons

+ PROS
  • 0% tax on the first $26,050 of income, then a low 2.75% rate — costs $2,325 to $27,651/year less than Maryland at every income level shown
  • Simple 2-bracket structure since 2022 reform (down from 9 brackets), with no unavoidable county-level tax layered on top
  • Full state exemption for Social Security, plus up to a $26,050 deduction for military and public-pension income
  • Strong healthcare (Cleveland Clinic), manufacturing, and logistics job markets at a much lower cost of living than the DC suburbs
− CONS
  • Slightly higher average property tax (~1.53%) than Maryland (~1.09%)
  • 200+ Ohio municipalities (Columbus, Cleveland, Cincinnati) add local income tax of 1.5-2.5% on top of the state rate for residents and commuters
  • Private pensions, 401(k), and IRA withdrawals are taxable at 2.75% beyond the retirement deduction — a real cost for retirees drawing heavily on those accounts
  • Colder winters and a smaller, slower-growing job market than the DC-metro-adjacent Maryland economy
🦀

Maryland Pros & Cons

+ PROS
  • Slightly lower average property tax (~1.09%) than Ohio (~1.53%)
  • DC-suburb access to deep federal, biotech, and defense employment (NIH, NSA, Johns Hopkins, Lockheed Martin, Northrop Grumman)
  • Montgomery County schools rank top-20 nationally, among the strongest public school systems anywhere in the state comparison set
  • Social Security is fully exempt for households under $50,000 in total income, and retirees 65+ get a $34,300 deduction on other retirement income
− CONS
  • Mandatory two-tier state-plus-county income tax (2-6.5% state + 2.25-3.3% county, unavoidable statewide) costs $2,325 to $27,651/year more than Ohio at every income level shown
  • Combined state-plus-county rate reaches 9.05% for high earners in Montgomery County or Baltimore City — among the highest effective rates in this comparison set
  • Private pensions, 401(k), and IRA withdrawals beyond the $34,300 age-65+ deduction are fully taxable at combined state-plus-county rates
  • Slightly lower property tax rate rarely offsets the income-tax gap, since Maryland's home values (especially near DC) are far higher than Ohio's
FAQ

Frequently Asked Questions

Is Ohio or Maryland cheaper for state income tax?

Ohio is dramatically cheaper at every income level. At $100,000, Ohio's simplified 2-bracket system costs $1,591 versus Maryland's mandatory state-plus-county combined bill of $6,366 — a $4,775/year difference. At $500,000, the gap grows to $27,651/year. Maryland's income tax is uniquely expensive because, unlike almost every other state, county income tax cannot be avoided anywhere in Maryland.

Which state has lower property tax, Ohio or Maryland?

Maryland has the slightly lower average effective property tax rate at roughly 1.09%, compared to Ohio's roughly 1.53%. On a $400,000 home, that's about $4,360/year in Maryland versus $6,120/year in Ohio — a savings of about $1,760/year for the Maryland homeowner on property tax alone.

Does the property tax difference change who wins overall?

No, not by a meaningful margin. At $100,000 income with a $400,000 home, Ohio's combined income-plus-property bill (about $7,711) is still roughly $3,000/year lower than Maryland's (about $10,726), because Maryland's income-tax disadvantage is so much larger than its property-tax advantage. Ohio wins the combined comparison at every realistic income and home-value combination.

How does Maryland's mandatory county tax work?

Every Maryland resident pays county income tax (2.25-3.3%) in addition to the state's 10-bracket tax (2-6.5%) — there is no way to live in Maryland and avoid it. Montgomery County (DC suburbs) and Baltimore City charge the highest rate (3.3%); Somerset County on the Eastern Shore charges the lowest (2.25%). Ohio, by contrast, only has local income tax in about 200 specific municipalities — residents of Ohio suburbs outside those cities pay no local income tax at all.

Does Columbus or Cleveland's city tax change the Ohio side of the comparison?

Yes, for residents of those cities specifically. Columbus and Cleveland both levy a 2.5% local income tax. At $100,000 income, that adds about $2,500/year, bringing a Columbus resident's total to roughly $4,091 — still well below Maryland's $6,366 combined state-plus-county bill. Ohio residents living outside a taxing municipality pay only the $1,591 state tax with no local add-on.

How is retirement income like Social Security, pensions, and 401(k) withdrawals taxed in each state?

Ohio fully exempts Social Security and allows up to a $26,050 deduction for military and public-pension income, but taxes private pensions and 401(k)/IRA withdrawals at 2.75% above that. Maryland exempts Social Security entirely if total income is under $50,000, and gives retirees 65+ a $34,300 deduction on other retirement income, but taxes the remainder at combined state-plus-county rates. Ohio is generally the cheaper state for retirees at most income levels due to its far lower base rate.

How much would I save moving from Maryland to Ohio?

At $100,000 income, moving from Maryland to Ohio could save about $4,775/year in state and local income tax. At $250,000, the savings grow to about $12,942/year, and at $500,000, to about $27,651/year. Montgomery County or Baltimore City residents (Maryland's highest combined-rate counties) would see savings even larger than the statewide-average figures shown here.

Is Maryland's DC-suburb job market worth the higher taxes?

For many professionals, yes — Maryland's Montgomery and Prince George's counties offer access to NIH, NSA, Johns Hopkins-affiliated biotech, and major defense contractors like Lockheed Martin and Northrop Grumman, with salaries that can significantly exceed what's available in Columbus or Cleveland. But for comparable DC-area jobs without Maryland's tax burden, many workers instead choose Northern Virginia, which has no county-level income tax at all.
From the brief
NL27%new 2027 rate, down from 30%
DK65.4kkr/mo threshold, cut from 78k
MT1940snon-dom regime unchanged since
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