Maryland has a progressive income tax system with rates ranging from 2% to 5.75%, plus additional local income taxes that can significantly increase your total burden. Our free Maryland paycheck calculator shows your estimated take-home pay after federal taxes and Maryland state tax. Whether you're considering a move to the Old Line State, comparing job opportunities in Baltimore or the DC metro area, or planning your current Maryland budget, get accurate results based on 2025 tax rates.
Maryland Tax System Overview
Maryland has one of the most complex tax systems in the nation:
2025 Maryland State Tax Brackets (Single Filer)
| Income Range | Tax Rate | Tax Amount |
|---|---|---|
| $0 - $1,000 | 2.00% | Up to $20 |
| $1,001 - $2,000 | 3.00% | Up to $50 |
| $2,001 - $3,000 | 4.00% | Up to $90 |
| $3,001 - $100,000 | 4.75% | Up to $4,698 |
| $100,001 - $125,000 | 5.00% | Up to $5,948 |
| $125,001 - $150,000 | 5.25% | Up to $7,261 |
| $150,001 - $250,000 | 5.50% | Up to $12,761 |
| $250,001+ | 5.75% | $12,761+ |
Plus Local Income Taxes: Counties impose additional 1.25% to 3.2% local income taxes
Sample Maryland Paycheck Calculations
Here's how much you'll take home at different salary levels in Maryland (state tax only - local taxes add 1.25-3.2%):
$60,000 Annual Salary
- Gross Pay: $60,000
- Federal Tax: $6,437
- MD State Tax: $2,564
- FICA Taxes: $4,590
- Take-Home Pay: $46,409 (77.3%)
- Monthly Net: $3,867
- Bi-weekly Net: $1,785
- Note: Local taxes would reduce this further
$90,000 Annual Salary
- Gross Pay: $90,000
- Federal Tax: $12,879
- MD State Tax: $3,842
- FICA Taxes: $6,885
- Take-Home Pay: $66,394 (73.8%)
- Monthly Net: $5,533
- Bi-weekly Net: $2,554
- Note: Local taxes would reduce this further
$120,000 Annual Salary
- Gross Pay: $120,000
- Federal Tax: $19,394
- MD State Tax: $5,198
- FICA Taxes: $9,180
- Take-Home Pay: $86,228 (71.9%)
- Monthly Net: $7,186
- Bi-weekly Net: $3,317
- Note: Local taxes would reduce this further
Maryland vs. Neighboring States
Compare Maryland's tax burden with surrounding states (including local taxes):
Maryland ($90k salary)
- Take-home: ~$63,000-65,000
- Effective rate: 27-30%
- Total state/local tax: $5,700-6,700
- High tax burden
Virginia ($90k salary)
- Take-home: $67,321
- Effective rate: 25.2%
- State tax: $4,050
- VA Saves: $2,000-4,000/year
Understanding Maryland's Complex Tax System
Maryland State Income Tax
Maryland's state tax is just the beginning:
- Progressive Rates: 2% to 5.75% on state level
- Standard Deduction: $2,400 (single), $4,850 (married)
- Personal Exemption: $3,200 per person
- Dependent Exemption: $3,200 per dependent
Maryland Local Income Taxes
Every Maryland county imposes additional local income taxes:
- Montgomery County: 3.2% (highest in state)
- Prince George's County: 3.05%
- Baltimore County: 3.03%
- Anne Arundel County: 2.81%
- Worcester County: 1.25% (lowest in state)
DC Metro Area Tax Burden
Working in the DC area brings additional considerations:
Live in MD, Work in DC
- MD state tax: 2-5.75%
- MD local tax: 1.25-3.2%
- DC tax: Withheld, credited back
- Total burden: Very high
Live in VA, Work in DC
- VA state tax: 2-5.75%
- No local income tax
- DC tax: Withheld, credited back
- Total burden: Moderate
Frequently Asked Questions
How much are local taxes in Maryland?
Local taxes range from 1.25% to 3.2% depending on your county. Montgomery County has the highest at 3.2%, while Worcester County has the lowest at 1.25%.
Is Maryland retirement-friendly?
Maryland is moderately retirement-friendly. Social Security is not taxed, and there are some pension exemptions available. However, most retirement income is subject to state and local taxes.
Do I pay both state and local taxes?
Yes, all Maryland residents pay both state income tax (2-5.75%) and local income tax (1.25-3.2%) to their county of residence.
Tax Planning Tips for Maryland Residents
Consider Your County of Residence
Local tax rates vary significantly. Moving to a lower-tax county can save thousands annually while still allowing DC area access.
Maximize Retirement Contributions
With Maryland's high combined rates, pre-tax retirement contributions provide substantial immediate tax savings.
Plan for Retirement Location
Consider Maryland's high tax burden when planning retirement. Many retirees move to lower-tax states like Delaware or Florida.
Ready to Calculate Your Maryland Take-Home Pay?
Use our calculator above to estimate your state tax burden. Remember to add local taxes for your total Maryland tax burden.