Key Tax Facts: Maryland
- County income taxes add 2.25%-3.20% on top of state rate
- Retirement income exclusion up to $38,400 for those 65+
- Social Security benefits are exempt
- No deduction for federal income taxes paid
Estimate Your 2026 Federal and Maryland State Income Tax
Maryland State Income Tax Overview
Maryland has a graduated state income tax with eight brackets ranging from 2% to 5.75%, plus an additional 1.75% surtax on income above $100,000 for single filers. Beyond state income tax, Maryland counties and Baltimore City each impose a local income tax ranging from 2.25% to 3.2%, making Maryland's combined state and local income tax one of the higher burdens in the country. Maryland provides a standard deduction of 15% of adjusted gross income, with a minimum of $1,800 and a maximum of $2,700 for single filers ($3,650 to $5,450 for joint filers). The state exempts the first $35,000 of military retirement pay for qualifying residents.
What Is Different About Maryland's Income Tax
Deductions and exemptions
Maryland's standard deduction is 15% of adjusted gross income, capped for 2025 at $2,700 for single filers and $5,450 for joint filers, and filers may instead itemize using federal amounts less state tax paid. Personal exemptions of $3,200 per person phase out above $100,000 of income. Every county and Baltimore City add a local income tax of 2.25% to 3.2% collected on the same return.
Credits worth knowing
Maryland's earned income credit is 45% of the federal credit, with a refundable portion, and there is a poverty-level credit, a child tax credit for low-income families with young or disabled children, a child and dependent care credit, and a credit for taxes paid to other states.
Retirement, capital gains, and other income
Social Security is exempt. Taxpayers 65 and older or disabled may exclude up to $39,500 of qualifying pension income for 2025 under the pension exclusion, and a separate senior tax credit of $1,000 applies below an income cap. Military retirement pay is exempt up to $20,000. Capital gains are taxed as ordinary income.
Rules summarized from the Maryland Comptroller guidance for tax year 2026. Amounts that index annually are described in general terms; confirm the current figure on the official form instructions.
Maryland Income Tax Brackets (2026) projected
These are the Maryland state income tax brackets for tax year 2026. Maryland applies the same brackets to all filing statuses, carried forward from 2025 pending official 2026 figures. Only the income within each bracket is taxed at that rate -- not your entire income.
| Taxable Income | Tax Rate |
|---|---|
| $0 - $1,000 | 2% |
| $1,000 - $2,000 | 3% |
| $2,000 - $3,000 | 4% |
| $3,000 - $100,000 | 4.75% |
| $100,000 - $125,000 | 5% |
| $125,000 - $150,000 | 5.25% |
| $150,000 - $250,000 | 5.5% |
| Over $250,000 | 5.75% |
Source: Maryland Comptroller. Maryland applies these brackets to all filing statuses.
What a Maryland Resident Actually Pays: A Worked Example
Your effective tax rate is almost always lower than your top bracket. Here is how the math works for a single filer earning $65,000.
Where Maryland Stands Among the 50 States
Maryland's top rate of 5.75% ranks #17 of the 41 states that tax wages. The median top rate across those 41 states is 5.2%, so Maryland is above the middle of the pack. It is one of 27 states with a graduated schedule, using 8 brackets; the top rate starts at $250,000 of taxable income, and the lowest bracket ends at $1,000.
On sales tax the picture is similar: Maryland's combined state and average local rate of 6% ranks #39 of 50, against a national median of 7.00%.
Maryland State Tax at Five Income Levels (2026, single filer)
| Taxable income | Maryland tax | Effective rate | Marginal rate |
|---|---|---|---|
| $40,000 | $1,848 | 4.62% | 4.75% |
| $65,000 | $3,035 | 4.67% | 4.75% |
| $100,000 | $4,698 | 4.70% | 4.75% |
| $150,000 | $7,260 | 4.84% | 5.25% |
| $250,000 | $12,760 | 5.10% | 5.5% |
Brackets applied directly to the taxable-income figure shown, before Maryland-specific deductions, exemptions, or credits. Federal tax is separate and comes on top of every row.
Maryland vs. Its Neighbors on $75,000 of Taxable Income
A Maryland resident with $75,000 of taxable income pays about $3,510 in state income tax. Of Maryland's 4 neighboring states, 2 would tax that income less and 2 would tax it more.
| State | Structure | Tax on $75,000 | Top rate | Sales tax |
|---|---|---|---|---|
| Maryland (you) | Graduated | $3,510 | 5.75% | 6% |
| Pennsylvania | Rate to 3.07% | $2,303 | 3.07% | 6.34% |
| West Virginia | Rate to 4.82% | $2,777 | 4.82% | 6.52% |
| Delaware | Rate to 6.6% | $3,934 | 6.6% | 0% |
| Virginia | Rate to 5.75% | $4,055 | 5.75% | 5.75% |
Frequently Asked Questions -- Maryland Income Tax
Does Maryland have a state income tax?
Yes. Maryland imposes a state income tax with a top marginal rate of 5.75%. This is separate from your federal income tax obligation.
What is the Maryland income tax rate for 2026?
Maryland uses a graduated income tax system with rates from 2% to 5.75%. Only the income within each bracket is taxed at that bracket's rate -- not your entire income.
Do I have to file a Maryland state tax return?
Most full-year Maryland residents with income above the state filing threshold must file a state return. Check the Maryland Comptroller for current thresholds and requirements.
How accurate is this estimate?
The federal figure uses the official IRS 2026 brackets and standard deduction. The Maryland figure applies the 2026 single-filer rate schedule to the same taxable income; it does not model Maryland-specific deductions, exemptions, credits, or local income taxes, so treat it as a planning number and confirm with the Maryland Comptroller or a tax professional before filing.
How does Maryland compare with nearby states?
On $75,000 of taxable income, Maryland collects about $3,510. Pennsylvania collects $2,303, West Virginia collects $2,777, Delaware collects $3,934, Virginia collects $4,055. See the comparison table above.
Where does Maryland rank on state income tax?
Maryland's top rate of 5.75% ranks #17 of the 41 states with an income tax, against a median top rate of 5.2%. Its combined sales tax of 6% ranks #39 of 50.
Does this calculator include federal income tax?
Yes. It estimates your 2026 federal income tax using the official IRS 2026 brackets, then applies the Maryland rate schedule to the same taxable income and shows both figures plus the combined total.
Where can I find official Maryland tax forms?
Official forms, instructions, and filing guidance are available at the Maryland Comptroller.
What is the sales tax rate in Maryland?
Maryland's combined state and average local sales tax rate is 6%. This is separate from income tax and applies to most retail purchases -- use our sales tax calculator to check a specific purchase.
When are Maryland 2026 state taxes due?
2026 taxes are generally filed in 2027. The Maryland filing deadline is April 15, 2027, the same as the federal deadline.
Understanding Your Maryland Tax Estimate
Your results combine two separate bills: federal tax owed to the IRS, and Maryland state tax owed to the Maryland Comptroller. The state return is filed separately from your federal Form 1040, with a state filing deadline of April 15. For the mechanics of how bracket math actually works -- why your effective rate is almost always lower than your top bracket -- see our marginal vs. effective tax rate guide.
Lowering Your Maryland Bill
Pre-tax retirement contributions reduce your federal and Maryland taxable income in the same move -- see our 401(k) contribution limits and HSA limits guides for the current caps. Beyond that, Maryland-specific credits and deductions that don't exist at the federal level are listed at the Maryland Comptroller -- worth checking, since these are easy to miss if you only look at federal guidance.
Combined Sales + Income Tax Picture
Maryland's combined state-plus-average-local sales tax rate is 6%. If you're self-employed, that's an added layer on top of income tax -- our self-employment tax calculator covers the SE-specific piece separately.
Disclaimer: Estimates for educational purposes only. State tax results are approximations based on published bracket data and do not account for all deductions, credits, exemptions, local taxes, or individual situations. Not tax, legal, or financial advice. Consult the Maryland Comptroller or a qualified tax professional for guidance specific to your situation.