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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Texas VS COUNTRY B Maryland

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

Daniel · CountryTaxCalc Updated June 2026 Income tax verified October 2026 Tax Comparison 2026
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OVERVIEW
Texas has no state income tax, while Maryland carries one of the highest combined state-plus-county income tax burdens in the nation. Maryland's income tax combines a progressive state rate (2-6.5%) with a mandatory county income tax (2.25-3.3%; 3.2% in Montgomery County, home to many federal workers, and in Prince George's County). The table shows state income tax only — about $4,384 at $100k — and county tax comes on top (about $2,989 more at $100k in a 3.2% county, roughly $7,373 combined). Texas charges zero. On $100,000 income, moving from Maryland to Texas saves approximately $4,384/year in state income tax, or about $7,373 including a 3.2% county tax. The Texas-Maryland corridor is significant: federal employees and contractors in the DC suburbs (Montgomery County, Prince George's County, Anne Arundel County) increasingly consider Texas metros — especially DFW and Houston — for remote or post-retirement relocation.
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
Texas
TAX RATE
0%
No Income Tax

No state income tax — Texas constitution prohibits personal income tax

🦀
COUNTRY B
Maryland
TAX RATE
2-6.5%
Progressive

10 state brackets plus mandatory county tax (2.25-3.3%)

TYPICAL ANNUAL DIFFERENCE
Moving from Maryland → Texas at $100,000
$4,384

That's $365/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
⭐ TX TAX
🦀 MD TAX
SAVINGS
10-YEAR
$50,000
$0
$2,009
$2,009
$20,090
$75,000
$0
$3,197
$3,197
$31,970
$100,000
$0
$4,384
$4,384
$43,840
$150,000
$0
$7,040
$7,040
$70,400
$200,000
$0
$9,823
$9,823
$98,230
💡

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⭐

Texas Pros & Cons

+ PROS
  • Zero income tax: Texas constitution prohibits state income tax — saves $4,384+ in state tax on $100k vs Maryland
  • No county income tax: Unlike Maryland, Texas has no mandatory county-level income tax
  • Lower total tax burden: Texas ranks as one of the lowest total state/local tax burden states
  • Major job markets: Dallas-Fort Worth, Houston, Austin — three of the fastest-growing US metros
  • No state inheritance tax: Texas has no estate or inheritance tax
− CONS
  • High property tax: Texas effective property tax rate ~1.40% vs Maryland ~0.92% — adds $1,900-$2,900/year on a $400k-$600k home
  • High sales tax: Up to 8.25% combined state and local sales tax
  • No income tax replacement: Heavier property and sales tax load offsets some income tax savings for homeowners
  • Extreme heat: Dallas/Houston summers with 100°F+ temperatures for extended periods
  • Flood and storm risk: Hurricane exposure (Houston), flash flooding, winter storm vulnerability (2021 grid failure)
🦀

Maryland Pros & Cons

+ PROS
  • Federal job access: Proximity to DC — highest concentration of federal agencies and contractors in US
  • High salaries: Federal and contractor salaries in MD/DC area among highest in the country
  • Top-ranked schools: Maryland schools consistently rank in top 10 nationally; Montgomery County schools #1 in many surveys
  • Lower property tax: ~0.92% effective rate vs Texas ~1.40% saves $1,900-$2,900/year on a $400k-$600k comparable home
  • Excellent infrastructure: Metro, MARC rail, access to Baltimore and DC without car in many areas
− CONS
  • One of highest combined income taxes: State 4.75-6.5% + county 2.25-3.3% on $100k+ income
  • Mandatory county tax: Every Maryland resident pays both state AND county income tax — no opt-out
  • High cost of living: Montgomery County, Howard County, Anne Arundel among most expensive in nation
  • Estate/inheritance tax: Maryland is one of only 2 states with both estate AND inheritance tax
  • Retirement income taxed: Maryland taxes pensions, 401(k), and IRA withdrawals at state and county rates, beyond a pension exclusion of up to $41,200 for 2025 that does not cover IRAs (Social Security is not taxed)
FAQ

Frequently Asked Questions

How much does a federal worker save by moving from Maryland to Texas?

A federal worker earning $100,000 saves approximately $4,384/year in state income tax by moving from Maryland to Texas (about $7,373 including a 3.2% county tax). At $150,000 (senior GS grade), state tax savings reach ~$7,040/year (about $11,706 with county tax). At $200,000, they reach ~$9,823/year (about $16,114 with county tax). However, Texas property taxes are significantly higher — expect to pay $1,900-$2,900 more per year in property tax than an equivalent Maryland home (on a $400k-$600k home), partially offsetting income tax savings. Net savings at $100k income including a 3.2% county tax: approximately $4,473-$5,473/year depending on housing situation.

What is Maryland's county income tax and why is it so high?

Every Maryland county and Baltimore City levies its own income tax on residents, ranging from 2.25% (Worcester, the lowest) to 3.3% (Dorchester and Kent, the highest). This county tax is mandatory — you cannot opt out. The table above shows state income tax only; adding a 3.2% county rate — the rate in Montgomery and Prince George's Counties — brings the total combined tax at $100,000 income to about $7,373 ($4,384 state plus $2,989 county). This combined burden makes Maryland one of the highest income-tax states effectively, despite the state rate alone appearing moderate at 6.5%. Maryland uses county taxes to fund local schools and services.

Does Texas's high property tax offset the income tax savings vs Maryland?

Partially, yes. Texas effective property tax rates of 1.40% are well above Maryland's ~0.92%. On a $400,000 home: Texas pays ~$5,600/year in property tax vs Maryland ~$3,680/year — difference of ~$1,920/year. On a $600,000 home, the gap is ~$2,880/year. So at $100k income, Texas income tax savings of about $7,373 (state plus a 3.2% county tax) minus extra property tax of $1,920-$2,880 = net savings of about $4,493-$5,453/year. At higher incomes ($150k+), income tax savings dwarf property tax costs, and Texas wins by a wide margin.

Which Texas city is best for Maryland federal workers relocating?

Dallas-Fort Worth is the most popular destination for Maryland federal worker relocation: DFW has several major federal facilities (Army, Navy, VA), strong federal contractor presence (Lockheed Martin, L3Harris, Raytheon), and easy flights to DC. Austin attracts tech-oriented federal workers and those moving to private sector. San Antonio has a large military presence (Joint Base San Antonio). Houston suits energy sector and port-related federal roles. All three Texas metros offer dramatically lower housing costs and zero state income tax vs Maryland's roughly 7.4% effective combined state-plus-county rate at $100k income.

Does Maryland tax retirees heavily?

Maryland taxes most retirement income other than Social Security, while Texas has no state income tax. Maryland taxes: 401(k) and pension income (partial exclusion of up to $41,200 for tax year 2025 for age 65+ or totally disabled, reduced by Social Security received), IRA withdrawals (no pension exclusion), and military retirement pay (partly subtractable, up to $20,000 at age 55+ or $12,500 under 55), while Social Security is not taxed in Maryland. Texas taxes none of these. A Maryland retiree's state and county income tax on retirement income depends on the mix of pension, IRA and other income; Texas would tax it at $0.
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