Maryland Salary Calculator 2026 — Free Take-Home Pay Estimator

Maryland Income Tax Summary

Maryland has a progressive income tax system with rates from 2% to 5.75%. In addition to state tax, each of Maryland's 23 counties and Baltimore City impose their own local income tax. Maryland taxes most forms of income but offers a standard deduction and personal exemption. The state's overall tax burden is above average. [Source: Maryland Comptroller, 2026]

Maryland Income Tax Rules

• Progressive state tax with five brackets: 2%, 3%, 4%, 4.75%, and 5.75% [Source: Maryland Comptroller, 2026]
• County income tax: required in all counties and Baltimore City, ranging from 2.25% to 3.2%
• Standard deduction: based on federal standard deduction [Source: Maryland Comptroller, 2026]
• Personal exemption: $3,200 per exemption (phaseouts apply)
• Wages, salaries, tips, interest, dividends, and capital gains are all taxable
• Social Security benefits are not taxed
• Retirement income is partially exempt for those 65+ up to certain limits
• State income tax is not deductible on federal returns

Maryland Payroll & Withholding Rules

Employers must withhold both Maryland state and county income tax from employee wages. Unemployment insurance is employer-paid only. There are no other mandatory local taxes beyond county income taxes. [Source: Maryland Comptroller, 2026]

Local Taxes in Maryland

All 23 Maryland counties and Baltimore City impose a local income tax ranging from 2.25% to 3.2% of taxable income. These are collected by the state and distributed to the counties. No cities within Maryland impose separate income taxes beyond the county level.

Cost of Living Context

Maryland's cost of living is about 20% above the national average. Housing costs are high, especially in the Washington DC suburbs of Montgomery and Prince George's counties and in the Baltimore metro area. Transportation and utilities are above average. Major metro areas include Baltimore and the DC suburbs. [Source: Maryland Comptroller, 2026]

Real-World Example: Maryland

For a single filer earning $85,000/year in Baltimore, Maryland:

• Federal taxable income: ~$70,400 (after $14,600 standard deduction)
• Maryland state tax: ~$3,830 (using 2026 brackets)
• Estimated take-home: ~$5,897/month (pre-FICA, pre-insurance)

Note: Actual results vary based on deductions, credits, and local taxes.

Maryland FAQs

Q: What are the income tax brackets in Maryland? [Source: Maryland Comptroller, 2026] A: Maryland's state rates range from 2% to 5.75% across five brackets. [Source: Maryland Comptroller, 2026]

Q: Does Maryland have a county income tax? A: Yes, all counties and Baltimore City impose a local income tax of 2.25% to 3.2%.

Q: Does Maryland tax Social Security benefits? A: No, Social Security benefits are not taxed in Maryland.

Q: Does Maryland tax retirement income? A: Retirement income is partially exempt for those aged 65 and older up to certain limits.

Q: Does Maryland have a state sales tax? A: Yes, Maryland has a state sales tax rate of 6%. [Source: Maryland Comptroller, 2026]

Q: What is the personal exemption in Maryland? A: The personal exemption is $3,200 per exemption, with phaseouts at higher income levels.

Q: Are capital gains taxed in Maryland? A: Yes, capital gains are taxed as ordinary income at both state and county rates.