Overview
Maryland levies a graduated state income tax with eight brackets, ranging from 2.00% to 5.75%. The top rate of 5.75% applies to income above $250,000 for single filers and $300,000 for married couples. While the state rates are moderate, Maryland's total income tax burden is significantly higher because every county (and Baltimore City) imposes a county income tax piggyback on top of the state rate.
County income tax rates in Maryland range from 2.25% (Worcester County) to 3.20% (multiple counties including Howard, Montgomery, Prince George's, and Baltimore County). Baltimore City's rate is 3.20%. These county taxes are calculated as a percentage of Maryland taxable income and are mandatory — you cannot opt out. Combined, a resident of Montgomery County in the top state bracket pays 8.95% (5.75% state + 3.20% county) before federal taxes.
Maryland Tax Brackets 2026
| Income Range | Tax Rate | Tax on Bracket |
|---|---|---|
| $0 - $1,000 | 2% | $20 |
| $1,001 - $2,000 | 3% | $30 |
| $2,001 - $3,000 | 4% | $40 |
| $3,001 - $100,000 | 4.75% | $4,608 |
| $100,001 - $125,000 | 5% | $1,250 |
| $125,001 - $150,000 | 5.25% | $1,313 |
| $150,001 - $250,000 | 5.5% | $5,500 |
| Over $250,001 | 5.75% | -- |
Standard Deductions and Exemptions
| Filing Status | Standard Deduction | Personal Exemption |
|---|---|---|
| Single | $2,550 | $3,200 |
| Married Filing Jointly | $5,100 | $6,400 |
| Head of Household | $2,550 | $3,200 |
| Per Dependent | — | $3,200 |
Understanding Maryland Taxes
Maryland's standard deduction is $2,550 for single filers and $5,100 for married filing jointly, with a minimum of $1,800. Personal exemptions are $3,200 per person. Maryland begins with federal adjusted gross income and applies its own modifications.
Maryland does not tax Social Security benefits at the state level. The state provides a pension exclusion for taxpayers 65 and older of up to $39,500 per person of retirement income including pensions, 401(k)s, and IRAs. For taxpayers under 65, a smaller exclusion may apply for certain types of retirement income. Military retirement pay is fully exempt from Maryland income tax.
Maryland's sales tax is 6.00% statewide with no local additions. Groceries and prescription drugs are exempt. The uniform statewide rate keeps compliance simple, which is a notable contrast to the complexity of the county income tax system.
Property taxes in Maryland average approximately 1.05%, near the national average but varying significantly by county. Montgomery and Howard counties have high home values but competitive mill rates. The state offers a Homeowners' Property Tax Credit (circuit breaker) for homeowners whose property taxes exceed a percentage of their income, as well as a Homestead Tax Credit that limits annual assessment increases to 10%.
Filing Tips for Maryland
Your county piggyback tax is based on where you live, not where you work — moving even one county over can change your total rate by nearly 1%
If you are 65+, claim the pension exclusion of up to $39,500 to significantly reduce your Maryland tax bill
Apply for the Homeowners' Property Tax Credit if your property taxes feel disproportionate to your income — the circuit breaker program can provide substantial relief
State Revenue Authority
For the most current tax information, visit the official Maryland tax authority:
marylandtaxes.govRelated Calculators
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Tax rates shown are based on 2026 data and may not reflect recent changes. Consult a tax professional for your specific situation.