Overview of Maryland Taxes: Maryland has a progressive state income tax, as well as income taxes in every county. It also has one of the higher state sales taxes in the nation.
Your 2025 Estimated State Income Tax:
Breakdown of Your Income Taxes
Your Annual Take-Home Pay
About This Calculator
Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions.
How Income Taxes Are Calculated
-
First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
-
Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer.
-
Based on your filing status, your taxable income is then applied to the tax brackets to calculate your federal income taxes owed for the year.
-
Your location will determine whether you owe local and / or state taxes.
When Do We Update? - We check for any updates to the latest tax rates and regulations annually.
Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com.
Assumptions
Deductions
- "Other Pre-Tax Deductions" are not used to calculate state taxable income.
Credits
- The only federal credit automatically calculated is the Savers Credit, depending on your eligibility.
- We do not apply any refundable credits, like the Child Tax Credit or Earned Income Tax Credit (EITC).
- We do not apply state credits in our calculations.
Itemized Deductions
- If itemizing at the federal level, you may need to itemize at the state level too. Some states don't allow itemized deductions, which is accounted for in our calculations.
- When calculating the SALT deduction for itemized deductions, we use state and local taxes, and we assume your MAGI.
- We assume that there is no cap to itemized deductions, if a state allows them.
- We do not categorize itemized deductions (such as medical expenses or mortgage interest), which could be subject to specific caps per state.
Local Tax
- Depending on the state, we calculate local taxes at the city level or county level. We do not include local taxes on school districts, metro areas or combine county and city taxes.
- With the exception of NYC, Yonkers, and Portland/Multnomah County, we assume local taxes are a flat tax on either state taxable income or gross income.
Actual results may vary based on individual circumstances and changes in tax laws or IRS regulations. Estimates provided by this calculator do not guarantee income tax amounts or rates. Past performance is not indicative of future results.
SmartAsset.com does not provide legal, tax, accounting or financial advice (except for referring users to third-party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States). Articles, opinions and tools are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual. Users should consult their accountant, tax advisor or legal professional to address their particular situation.
Find a high-yield deposit account that works for you
Taxes can really put a dent in your paycheck. But with an interest-bearing account, you can let your money work for you. Save more with these rates that beat the National Average*:
The National Average is based on the APY average for high-yield savings accounts with a minimum balance of $2,500, using data available from Bankrate.*
Taxes in Maryland
Maryland State Tax Quick Facts
- State income tax: 2.00% – 6.50%
- County income tax: 2.25% – 3.20%
- Sales tax: 6.00%
- Property tax: 0.95% effective rate
- Gas tax: 46.19 cents per gallon of regular gasoline
Maryland is among the states in which local governments levy their own taxes on personal income. Specifically, counties in Maryland collect income taxes with rates ranging from 2.25% to 3.20%. Additionally, there is a statewide income tax in Maryland, with a top rate of 6.50%.
These combined state and local taxes place Maryland in the top half of U.S. states for income taxes. Its state sales tax of 6% is one of the highest in the country, although there’s no local sales tax. The state’s property taxes, at an effective rate of 0.95%, are slightly higher than the national median (0.89%). Of course, all of these taxes and rates are subject to their own specific rules and exceptions. Here we’ll take a closer look into the Maryland state tax system.
A financial advisor can help you understand how these taxes fit into your overall financial goals. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Maryland Income Taxes
There are both state and county income taxes in Maryland. The state tax is structured based on income brackets, similar to the federal tax system.
Income Tax Brackets
| Rate | Single Filers | Married, Filing Jointly | Married, Filing Separately | Head of Household |
|---|---|---|---|---|
| 2.000% | $0 – $1,000 | $0 – $1,000 | $0 – $1,000 | $0 – $1,000 |
| 3.000% | $1,000 – $2,000 | $1,000 – $2,000 | $1,000 – $2,000 | $1,000 – $2,000 |
| 4.000% | $2,000 – $3,000 | $2,000 – $3,000 | $2,000 – $3,000 | $2,000 – $3,000 |
| 4.750% | $3,000 – $100,000 | $3,000 – $150,000 | $3,000 – $100,000 | $3,000 – $150,000 |
| 5.000% | $100,000 – $125,000 | $150,000 – $175,000 | $100,000 – $125,000 | $150,000 – $175,000 |
| 5.250% | $125,000 – $150,000 | $175,000 – $225,000 | $125,000 – $150,000 | $175,000 – $225,000 |
| 5.500% | $150,000 – $250,000 | $225,000 – $300,000 | $150,000 – $250,000 | $225,000 – $300,000 |
| 5.750% | $250,000 – $500,000 | $300,000 – $600,000 | $250,000 – $500,000 | $300,000 – $600,000 |
| 6.250% | $500,000 – $1,000,000 | $600,000 – $1,200,000 | $500,000 – $1,000,000 | $600,000 – $1,200,000 |
| 6.500% | $1,000,000+ | $1,200,000+ | $1,000,000+ | $1,200,000+ |
In addition to those statewide tax rates, taxpayers in Maryland pay additional income taxes based on the county in which they live (not where they work). County income taxes are assessed at a flat rate, which means the rate does not change based on income level. In other words, there are no brackets for these rates. Nonresidents pay a flat 2.25% rate, but the rate can vary by county for residents.
The above rates apply to Maryland taxable income. Maryland taxable income is based on your federal adjusted gross income (AGI), but with some differences. While the number of personal exemptions in Maryland will equal the number of exemptions on your federal tax return, the exemption amount is different.
For single filers with an income less than $100,000, or joint filers with an income of less than $150,000, the exemption is $3,200. For single filers with income between $100,000 and $125,000, the exemption falls to $1,600; from $125,000 to $150,000 it falls to $800; and for single filers with AGI greater than $150,000 there is no exemption. For joint filers or heads of household, the exemption is $3,200 up to $150,000 in income, $1,600 from $150,000 to $175,000, $800 up to $200,000 and $0 beyond that.
Additionally, there are a number of deductions and credits available to taxpayers in Maryland. Taxpayers making a contribution to the Maryland Prepaid College Trust or the Maryland Broker-Dealer Investment Plan may claim a deduction of up to $2,500 per year (extra contributions may be carried over to subsequent years). Credits can be claimed for, among other things, income taxes paid in other states and for childcare expenses.
Maryland Sales Tax
The sales tax in Maryland is 6%. Unlike many other states, there are no local sales taxes anywhere in Maryland. Therefore, this rate does not vary depending on your location within the state. It applies to most goods, including personal property like furniture and clothing, but not to most services. However, most food sold at grocery stores or markets is not subject to sales tax at all. Prepared food as served in a restaurant is taxed at the 6% rate.
Maryland Property Tax
There are 179 separate tax authorities that collect property taxes in Maryland, including all 23 counties, the City of Baltimore and 155 incorporated cities. Rates vary depending on the district in which the home is located, but the statewide effective rate (taxes paid as a percentage of home value) is 0.95%. This is slightly above the average among U.S. states of 0.89%.
If you are looking to purchase a house or refinance your Maryland residence, take a look at our Maryland mortgage rates guide for all you need to know about mortgages in Maryland.
Maryland Estate Tax and Inheritance Tax
Maryland has both an estate tax and an inheritance tax. Estate taxes are paid by the estate, while inheritance taxes are paid by the heirs. For tax year 2025, the exemption for taxable estates is $5 million. Estates below that level do not need to pay the estate tax. Estates above that exemption pay a rate of up to 16%.
Close relatives are generally exempt from the state’s inheritance tax, including a surviving spouse, children, grandchildren, parents, grandparents and siblings. The tax typically affects more distant heirs, such as nieces, nephews, cousins, friends or unrelated individuals, who may owe inheritance tax on what they receive. Maryland’s inheritance tax rate is generally 10% of the value of the inherited property for non-exempt beneficiaries.
Maryland Cigarette Tax
Maryland taxes cigarettes at $2 per pack of 20. Cigars face a tax rate of 70% of the wholesale price and other tobacco products face a rate of 30% of the wholesale price.
Maryland Gas Tax
The statewide gas tax in Maryland is 46.19 cents per gallon regular fuel.
Maryland Alcohol Tax
There is a tax of $0.60 per gallon of beer and $5.46 per gallon of liquor.