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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Washington State VS COUNTRY B Maryland

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

Daniel · CountryTaxCalc Updated June 2026 Income tax verified October 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
Washington State has no state income tax (0%), while Maryland's income tax combines a progressive state rate (2% to 6.5%) with a mandatory county income tax — the free calculator blends this in using a representative 3.2% rate, the rate charged by Maryland's most populous counties (real range 2.25%-3.3% by county), directly into its state brackets. At $100,000, Washington State saves approximately $7,504/year. Maryland is the wealthiest state by median household income, anchored by the Washington DC federal government and defense contractor corridor. Montgomery County and Prince George's County are among the highest-taxed jurisdictions in the US by combined state+county income tax.
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
Washington State
TAX RATE
0%
No Income Tax

No state income tax (never had one, unconstitutional)

🦀
COUNTRY B
Maryland
TAX RATE
2-6.5%
Progressive

Blended with a representative county income tax (2.25-3.3%, calculator uses 3.2%)

TYPICAL ANNUAL DIFFERENCE
Moving from Maryland → Washington State at $100,000
$7,504

That's $625/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
🌲 WA TAX
🦀 MD TAX
SAVINGS
10-YEAR
$50,000
$0
$3,402
$3,402
$34,020
$100,000
$0
$7,504
$7,504
$75,040
$200,000
$0
$16,119
$16,119
$161,190
$500,000
$0
$42,835
$42,835
$428,350
💡

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🌲

Washington State Pros & Cons

+ PROS
  • Zero income tax: Save $7,504/year on $100k, $42,835 on $500k — no state return
  • No county income tax: WA has no local income taxes of any kind
  • Amazon, Microsoft, Boeing — world-class tech salaries
  • No retirement income tax: All retirement income untaxed at state level
  • Outdoor recreation: Cascades, Olympic Peninsula, Puget Sound — unrivaled access
− CONS
  • Very expensive housing: Seattle median ~$780k vs MD suburbs $500k-$700k
  • High sales tax: 10.1-10.5% Seattle (vs MD 6%) — $400-$800 more/year
  • Business & Occupation tax affects contractors and self-employed
  • Far from DC/federal government employer base for DC-corridor workers
  • 7% capital gains tax on gains above $262k (since 2023)
🦀

Maryland Pros & Cons

+ PROS
  • Highest median household income: MD consistently ranks #1 in US for household income
  • Federal/defense jobs: DC suburbs offer unmatched federal contractor and agency careers
  • Top schools: Maryland's Montgomery County public schools rank among national best
  • DC access: Smithsonian, monuments, diplomatic culture, federal career advancement
  • Chesapeake Bay: World-class crabbing, sailing, and Mid-Atlantic outdoor culture
− CONS
  • Combined income tax: State (up to 6.5%) + County (up to 3.2%) = up to 9.7% combined
  • Montgomery County: 3.2% county tax on top of state tax = ~9.2-9.7% combined burden
  • Expensive suburbs: Bethesda, Potomac, Chevy Chase median homes $800k-$2M+
  • Property tax: ~0.99% effective — similar to WA but income tax greatly outweighs this
  • DC traffic: I-495 Beltway and I-270 corridors among worst commutes in US
FAQ

Frequently Asked Questions

What is Maryland's county income tax and how does it work?

Maryland is unique in requiring all residents to pay both a state income tax AND a county (or city) income tax. Real county rates range from 2.25% (Worcester, the lowest) to 3.3% (Dorchester and Kent, the highest). These county taxes are not optional — Maryland residents must pay both. The free calculator blends a representative 3.2% rate — the rate charged by Maryland's most populous counties, including Montgomery, Prince George's, and Baltimore City — directly into the state brackets: $7,504 combined at $100,000 income vs Washington State's $0.

How does Maryland compare to neighboring Virginia for income taxes?

Both Maryland and Virginia have significant income taxes vs Washington State's zero, but Maryland's combined burden is higher. Virginia: 5.75% flat (on income above $17k) = ~$4,936 on $100k. Maryland: state tax blended with a representative 3.2% county rate = ~$7,504 on $100k. Maryland's mandatory county tax is the key differentiator. Washington State beats both at $0, and saves $7,504 vs Maryland and $4,936 vs Virginia per $100k earned.

Why is Maryland's median household income the highest in the US?

Maryland's extraordinary median household income (~$98,000+, highest in US) is driven by: (1) Dense federal government employment — NSA, NIH, FDA, DoD are all based in Maryland suburbs; (2) Defense contractor cluster — Lockheed Martin, Northrop Grumman, Boeing (defense division) all have major MD presences; (3) Proximity to DC driving lobbying, law, and policy salaries; (4) Education sector — Johns Hopkins, University of Maryland. Despite the high incomes, residents pay roughly 7.5% to 9.7% in combined state+county income taxes, depending on income and county.

Is Maryland a good state for retirees?

Maryland offers partial retirement income exclusions (Social Security exempt; pension/IRA exclusions up to $36,200 for those 65+). But the mandatory county income tax still applies to taxable retirement income, making Maryland moderately expensive for retirees with significant 401k withdrawals. Washington State exempts all retirement income (no state income tax). For retirees: WA wins clearly if income is above $50,000. Maryland wins if proximity to family, DC culture, or federal pension/healthcare matters most.
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