Maryland is one of the few states where every county and Baltimore City levies a local income tax — and there are no exceptions. Every Maryland resident owes local tax on top of state income tax, with the rate determined by the county where you live on the last day of the tax year.
The good news: Maryland collects the local tax on your state income tax return (Form 502, Line 28). You don't file a separate return with the county. The Comptroller of Maryland handles collection on behalf of all 23 counties and Baltimore City and distributes the revenue to them.
The 2026 rate table below is sourced directly from the Maryland Comptroller's Office and reflects rates currently in effect, including two counties (Allegany and Kent) that increased their rates for 2026. Note that Anne Arundel and Frederick Counties have introduced tiered rates based on income level — a departure from the flat-rate structure most counties use.
The rate that applies is based on where you live on December 31 of the tax year, not where you work. Nonresidents who earn income in Maryland but live elsewhere pay a flat 2.25% nonresident rate instead of a county rate.
| Jurisdiction | 2026 Local Rate | Notes |
|---|---|---|
| Allegany County | 3.20% | Increased from 3.03% in 2025 |
| Anne Arundel County | 2.70% / 2.94% / 3.20% | Tiered — see below |
| Baltimore City | 3.20% | |
| Baltimore County | 3.20% | |
| Calvert County | 3.20% | |
| Caroline County | 3.20% | |
| Carroll County | 3.03% | |
| Cecil County | 2.74% | |
| Charles County | 3.03% | |
| Dorchester County | 3.30% | Highest in state |
| Frederick County | 2.25% / 2.75% / 2.96% / 3.20% | Tiered — see below |
| Garrett County | 2.65% | |
| Harford County | 3.06% | |
| Howard County | 3.20% | |
| Kent County | 3.30% | Increased from 3.20% in 2025; tied highest in state |
| Montgomery County | 3.20% | |
| Prince George's County | 3.20% | |
| Queen Anne's County | 3.20% | |
| St. Mary's County | 3.20% | |
| Somerset County | 3.20% | |
| Talbot County | 2.40% | |
| Washington County | 2.95% | |
| Wicomico County | 3.20% | |
| Worcester County | 2.25% | Lowest in state |
| Nonresident (all counties) | 2.25% | Applies to non-Maryland residents earning Maryland income |
Source: Maryland Comptroller of Maryland, marylandtaxes.gov, 2026 rates.
Two counties introduced progressive local income tax rates that vary by income — a relatively new development in Maryland local taxation.
| Filing Status | Income Bracket | Rate |
|---|---|---|
| Single / MFS / Dependent | $1 – $50,000 | 2.70% |
| Single / MFS / Dependent | $50,001 – $400,000 | 2.94% |
| Single / MFS / Dependent | Over $400,000 | 3.20% |
| MFJ / Head of Household | $1 – $75,000 | 2.70% |
| MFJ / Head of Household | $75,001 – $480,000 | 2.94% |
| MFJ / Head of Household | Over $480,000 | 3.20% |
| Filing Status | Income Bracket | Rate |
|---|---|---|
| Single / MFS / Dependent | $1 – $25,000 | 2.25% |
| Single / MFS / Dependent | $25,001 – $50,000 | 2.75% |
| Single / MFS / Dependent | $50,001 – $150,000 | 2.96% |
| Single / MFS / Dependent | Over $150,000 | 3.20% |
| MFJ / Head of Household | $1 – $25,000 | 2.25% |
| MFJ / Head of Household | $25,001 – $100,000 | 2.75% |
| MFJ / Head of Household | $100,001 – $250,000 | 2.96% |
| MFJ / Head of Household | Over $250,000 | 3.20% |
All other 21 counties use a single flat rate for all income levels.
Maryland's local income tax is unusual in that you do not file a separate return with your county. It is calculated and remitted on the Maryland state income tax return:
The Maryland Comptroller of Maryland collects the local tax on behalf of all jurisdictions and distributes it to counties. This means one return, one payment, one deadline — April 15 (or the next business day).
Employers withhold Maryland state and local tax together from payroll. The withholding tables issued by the Comptroller include the local rate for each county. If your employer withholds based on the wrong county (e.g., your work county instead of your home county), you may owe or receive a refund on your state return.
Nonresidents earning Maryland income file Form 505 (or 515 for DC/Virginia/West Virginia residents under reciprocity agreements) and pay the 2.25% nonresident rate rather than a county rate.
Maryland's local tax sits on top of the state income tax. The combined burden varies significantly by county. Here are the state brackets for the 2025 tax year (filed on your 2026 return):
| Taxable Income | Tax |
|---|---|
| $1 – $1,000 | 2.00% |
| $1,001 – $3,000 | $20 + 3–4% on excess |
| $3,001 – $100,000 | $90 + 4.75% over $3,000 |
| $100,001 – $250,000 | $4,698 + 5.00–5.50% on excess |
| $250,001 – $1,000,000 | $12,760 + 5.75–6.25% on excess |
| Over $1,000,000 | $58,385 + 6.50% on excess |
Combined top rate example (Montgomery County resident, income over $1M): 6.50% state + 3.20% local = 9.70% combined Maryland income tax. Add federal (37%) for a top combined marginal rate of approximately 46.7% — among the higher burdens in the US, comparable to California's combined rate for very high earners.
If you are relocating within Maryland or moving to Maryland and have flexibility in where you establish residency, county local tax is a genuine financial consideration.
| County | 2026 Local Rate | Tax on $100k Income | Tax on $250k Income |
|---|---|---|---|
| Worcester County | 2.25% | $2,250 | $5,625 |
| Talbot County | 2.40% | $2,400 | $6,000 |
| Garrett County | 2.65% | $2,650 | $6,625 |
| Carroll / Charles County | 3.03% | $3,030 | $7,575 |
| Montgomery / Baltimore City / others | 3.20% | $3,200 | $8,000 |
| Dorchester / Kent County | 3.30% | $3,300 | $8,250 |
The annual difference between living in Worcester County vs. Dorchester County is $1,050 on $100,000 income — a meaningful but not dramatic difference. Proximity to Baltimore or Washington DC (typically higher-rate counties) means most commuters are in 3.20% territory.
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