Maryland Tax Calculator 2026

Maryland Income Tax

Maryland has one of the most layered income tax systems in the United States, combining a graduated state income tax with mandatory county-level income taxes. The state tax uses eight brackets with rates ranging from 2% on the first $1,000 of taxable income to 5.75% on income exceeding $250,000 (for single filers) or $300,000 (for married filing jointly). On top of this, every Maryland county and Baltimore City imposes its own income tax at rates between 2.25% and 3.2%. This dual-layer structure means the combined income tax rate for Maryland residents ranges from about 4.25% at the lowest to as high as 8.95% at the top.

The county income tax is not optional and is based on the county where the taxpayer lives, not where they work. This is an important distinction for the many Maryland residents who commute to Washington, D.C. or neighboring states for employment. Maryland also imposes a “special nonresident tax” on nonresidents who earn income in Maryland, set at 1.75%, which roughly substitutes for the county tax that nonresidents do not pay. Maryland has reciprocal tax agreements with several neighboring states including Virginia, D.C., Pennsylvania, and West Virginia, which prevent double taxation of wages.

The Maryland state income tax brackets for single filers are:

Taxable Income	Rate
$0 – $1,000	2.00%
$1,000 – $2,000	3.00%
$2,000 – $3,000	4.00%
$3,000 – $100,000	4.75%
$100,000 – $125,000	5.00%
$125,000 – $150,000	5.25%
$150,000 – $250,000	5.50%
Over $250,000	5.75%

Maryland Sales Tax

Maryland has a flat 6% state sales tax with no local additions. This uniform rate makes Maryland one of the simpler states for sales tax compliance. Maryland exempts grocery food (food for home consumption), prescription and nonprescription drugs, and most medical devices from sales tax. Notably, Maryland does not exempt clothing from sales tax, unlike some neighboring states.

Maryland applies its 6% sales tax to most tangible personal property and certain digital products. The state has adopted economic nexus rules for remote sellers, requiring out-of-state businesses with more than $100,000 in Maryland sales or 200 or more transactions to collect and remit sales tax. Maryland also enacted a first-in-the-nation tax on digital advertising revenue in 2021, though this has faced legal challenges. Alcoholic beverages are subject to the 6% sales tax plus separate excise taxes.

Maryland Property Tax

Maryland’s average effective property tax rate is approximately 0.99%, which is close to the national average. Property is assessed at 100% of market value, with reassessments conducted on a triennial cycle (one-third of properties are reassessed each year). Maryland’s Homestead Tax Credit is one of its most important property tax protections: it limits the annual increase in a property’s assessed value to 10% per year for state tax purposes, with many counties imposing even tighter caps of 2% to 5%.

Property tax rates vary significantly across Maryland’s 23 counties and Baltimore City. Baltimore City has one of the highest property tax rates in the state at about $2.248 per $100 of assessed value, while Howard and Montgomery Counties have lower rates but higher property values. Maryland also offers a Homeowners’ Tax Credit for qualifying residents whose property taxes exceed a fixed percentage of their income, providing meaningful relief for lower and middle-income homeowners. The state additionally offers a Renters’ Tax Credit program for eligible renters.

Maryland County Income Tax Rates

Maryland’s unique county income tax system is a defining feature of the state’s tax landscape. Each of the 23 counties and Baltimore City sets its own income tax rate annually, within bounds established by state law. The minimum county rate is 1.0% (though no county currently charges this minimum), and the maximum is 3.2%. As of 2026, the county income tax rates are as follows: the highest rate of 3.2% is levied by Howard County, Montgomery County, Prince George’s County, and several others. Worcester County has the lowest rate at 2.25%, while most other counties fall between 2.5% and 3.0%.

The county income tax is calculated as a flat percentage of Maryland taxable income, without its own bracket structure. For a taxpayer in Montgomery County (3.2%) with $100,000 in taxable income, the county tax alone would be $3,200, on top of the approximately $4,300 in state income tax. This makes the total income tax bill around $7,500, or about 7.5% of taxable income. The county tax is a significant component of Maryland’s overall tax burden and is often the reason Maryland appears as a higher-tax state in national comparisons. Workers who live in Maryland but work in D.C. or Virginia pay the county tax based on their Maryland residence, not their work location.

Maryland vs. Neighboring States

• Maryland vs. Virginia: Virginia has graduated rates up to 5.75%, the same as Maryland’s top state rate, but Virginia has no county income tax equivalent. This means Virginia residents generally pay less in total income tax. Virginia’s property taxes are slightly lower on average, and its sales tax of 5.3% (with local additions up to 7%) is comparable.
• Maryland vs. Washington D.C.: D.C. has graduated rates up to 10.75% on income over $1 million, higher than Maryland’s combined state-plus-county rate for most earners. However, D.C. has no separate county tax layer. D.C.’s 6% sales tax is the same as Maryland’s, but property tax rates in D.C. are lower at about 0.56%.
• Maryland vs. Pennsylvania: Pennsylvania has a flat 3.07% state income tax rate with no county income tax (though some municipalities levy earned income taxes of 1-2%). Pennsylvania’s total income tax burden is generally lower. However, Pennsylvania has higher property taxes (about 1.36%) and a 6% sales tax with local additions in Philadelphia and Allegheny County.
• Maryland vs. Delaware: Delaware has graduated rates up to 6.6% with no local income tax. Delaware has no sales tax at all, which is a significant advantage for consumers. Delaware property taxes are very low at about 0.53%. For most residents, Delaware has a lower overall tax burden than Maryland.