MARYLAND PAYCHECK CALCULATOR
Your ZIP code sets your tax rate: state 2%-6.5% plus county 2.25%-3.2%Maryland is one of the only states where two people earning the same salary can owe genuinely different income tax bills just because they live on opposite sides of a county line. On top of the state’s own 2% to 6.5% bracket system, every one of Maryland’s 23 counties and Baltimore City adds its own local “piggyback” income tax, anywhere from about 2.25% up to 3.2%, collected right on the same state return. A resident in Montgomery County and a resident in Worcester County with identical paychecks can end up with a several-hundred-dollar gap in what they owe.
A Maryland paycheck runs through five deductions: federal income tax, Maryland state income tax, your county’s piggyback tax, Social Security, and Medicare. Because so much of the DMV area works across state lines, it’s worth checking how Maryland stacks up: see the Virginia paycheck calculator for the no-local-tax comparison, the Pennsylvania paycheck calculator, the Delaware paycheck calculator, or the Washington DC paycheck calculator.
Estimate only, for tax year 2026. Assumes the standard deduction, no pre-tax deductions, and no capital gains surtax. Actual withholding depends on your exact county and W-4 elections.
Every Deduction on a Maryland Paycheck
- Federal income tax: Based on the 2026 IRS brackets, 10% to 37%, after the $16,100 single / $32,200 joint standard deduction.
- Maryland state income tax: Ten brackets from 2% to 6.5%, after the state’s own standard deduction of $3,350 single / $6,700 joint.
- County piggyback tax: Every county plus Baltimore City adds its own income tax on the same Maryland taxable income, ranging roughly from 2.25% to 3.2%. This isn’t optional and it’s based on where you live, not where you work.
- Social Security: 6.2% of gross wages up to $184,500 for 2026.
- Medicare: 1.45% of all wages, no cap, plus an extra 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly).
Maryland Just Added Two New Top Brackets
Facing a multibillion-dollar budget gap, Governor Wes Moore signed the Budget Reconciliation and Financing Act of 2025 (HB 352) on May 20, 2025, and it reshaped the top of Maryland’s income tax table. Two new brackets went in above the old 5.75% ceiling: 6.25% on taxable income between $500,001 and $1,000,000 for single filers, and 6.5% above $1,000,000. Married couples filing jointly hit those same rates starting at $600,001 and $1,200,001. The law also raised the maximum allowable county piggyback rate from 3.2% to 3.3%, though as of this writing most counties haven’t moved to the new ceiling. On top of the bracket changes, anyone with federal adjusted gross income above $350,000 now faces an extra 2% surtax on net capital gains, separate from the regular income brackets.
Maryland State Tax Brackets, Single Filers (2026)
| Taxable Income | Rate |
|---|---|
| $0 – $1,000 | 2% |
| $1,000 – $2,000 | 3% |
| $2,000 – $3,000 | 4% |
| $3,000 – $100,000 | 4.75% |
| $100,000 – $125,000 | 5% |
| $125,000 – $150,000 | 5.25% |
| $150,000 – $250,000 | 5.5% |
| $250,000 – $500,000 | 5.75% |
| $500,000 – $1,000,000 | 6.25% |
| Above $1,000,000 | 6.5% |
That wide 4.75% band, running from $3,000 all the way to $100,000, is where most Maryland workers actually live for tax purposes. Married filers get the same rate structure with roughly 50% wider thresholds at the top three brackets, so a couple doesn’t hit 6.25% until $600,000 and 6.5% until $1,200,000.
Maryland vs. Its Neighbors: $70,000, Single Filer
Here’s how Maryland compares to three states people in the DMV area actually cross state lines to compare against, all at $70,000 in gross salary for a single filer. The Maryland figure uses Montgomery County’s 3.2% piggyback rate as a representative example, since the exact number depends on your specific county.
| State | State + Local Tax Owed | Est. Net Pay* |
|---|---|---|
| Maryland (Montgomery Co.) | ~$5,246 | ~$52,829 |
| Virginia | ~$3,308 | ~$54,767 |
| Pennsylvania | ~$2,149 + local EIT | ~$54,926 minus local EIT |
| Delaware | ~$3,000 (est.) | ~$55,075 (est.) |
*Net pay is after federal tax, state and local income tax, Social Security, and Medicare, before any pre-tax deductions. Pennsylvania’s local Earned Income Tax varies by municipality, from around 1% in many suburbs up to 3.75% for Philadelphia residents, so add your local rate to get an accurate number. Delaware’s figure is an estimate built from its published bracket structure and should be confirmed against the Delaware Division of Revenue before publishing.
Maryland Tax Burden: The Full Picture
| Tax Type | Maryland | National Average |
|---|---|---|
| State income tax (before county) | 2% to 6.5% | ~5.0% |
| Sales tax | 6% flat, no local add-on | ~7.5% |
| Effective property tax rate | 0.92% | ~0.99% |
| Estate / inheritance tax | Both apply, the only state with both | Most states have neither |
Maryland’s sales tax is actually a relative bright spot: a flat 6% statewide with no local add-ons at all, which is simpler and often lower than what shoppers pay in neighboring states. Property tax sits close to the national average too. Where Maryland stands out, for better or worse, is the income tax layering (state plus mandatory county tax) and the fact that it’s the only state in the country that charges both an estate tax and a separate inheritance tax. The estate tax kicks in above a $5 million exemption with no portability between spouses, while the inheritance tax applies a flat 10% to transfers outside the immediate family.
Federal Government Workers Face a Real Trade-Off
Maryland is home to a huge share of federal civilian employees, active-duty military, and government contractors, many of them commuting into DC. A federal salary is fully subject to both Maryland state and county income tax the same as any other job, and Maryland’s reciprocity agreements with DC, Virginia, Pennsylvania, and West Virginia cover wages only, not the local piggyback tax based on where you actually live. That’s a real factor in the perennial Maryland-versus-Virginia housing debate for DMV workers: Virginia has no county income tax at all, so a federal employee earning the same salary can owe noticeably less in Virginia’s Northern Virginia suburbs than in Montgomery or Prince George’s County. On the retirement side, Maryland does soften the blow for military retirees specifically, letting anyone under 55 subtract up to $12,500 of military retired pay and anyone 55 or older subtract up to $20,000.
Federal Tax: A Worked Example
Take a single filer earning $70,000 in 2026. Subtract the federal standard deduction of $16,100, and taxable income comes to $53,900. Here’s how that runs through the brackets:
- 10% on the first $12,400 = $1,240
- 12% on $12,400 to $50,400 ($38,000) = $4,560
- 22% on $50,400 to $53,900 ($3,500) = $770
Total federal tax: $6,570, an effective rate of 9.4% on the full $70,000. Layer Maryland’s own state bracket table and a county piggyback tax on top of that, and the state and local portion alone can add several thousand more, depending entirely on which county shows up on the paycheck stub.
Frequently Asked Questions
What is the Maryland income tax rate for 2026?
Maryland taxes income on a progressive scale from 2% to 6.5% at the state level. The 6.5% top rate, along with a new 6.25% bracket, was added by the Budget Reconciliation and Financing Act of 2025 (HB 352), signed by Governor Wes Moore on May 20, 2025, applying to taxable income above $500,000 for single filers and $600,000 for joint filers.
Why do I owe county tax on top of Maryland state tax?
Every Maryland county and Baltimore City levies its own local income tax, often called a piggyback tax, collected on the same state return. Rates run from about 2.25% up to 3.2% (with a new cap of 3.3% authorized by the 2025 budget act), so your total income tax bill depends heavily on which county you live in.
How much is taken out of a paycheck in Maryland?
A Maryland paycheck has five deductions: federal income tax, Maryland state income tax (2% to 6.5%), your county’s local piggyback tax (roughly 2.25% to 3.2%), Social Security (6.2% up to $184,500 in 2026), and Medicare (1.45%, plus an extra 0.9% above $200,000 for single filers).
Does Maryland tax Social Security benefits?
No. Social Security benefits are fully exempt from both the state and county portions of Maryland income tax. Other retirement income like pensions and 401(k) withdrawals is generally taxable, though residents 65 and older get a pension exclusion.
Does Maryland have an estate tax and inheritance tax?
Yes, Maryland is the only state in the country that levies both. The estate tax applies to estates above a $5 million exemption at rates from 0.8% to 16%, with no portability between spouses. The inheritance tax is a flat 10% on transfers to non-immediate family, though spouses, children, and other close relatives are exempt.
Is Maryland a good state for federal government workers?
It’s mixed. A federal employee’s salary is fully subject to Maryland state and county income tax even though the job is in DC, and Maryland’s reciprocity agreements with DC, Virginia, Pennsylvania, and West Virginia only cover wages, not the local piggyback tax owed based on where you live. Many DMV-area federal workers weigh Maryland’s higher combined income tax rate against Virginia’s simpler, county-tax-free system.
Maryland’s tax code rewards paying attention to the fine print more than most states do, the gap between living in one county versus the next can be worth real money every single paycheck. Anyone comparing a Maryland offer letter against a job across the Potomac should run the county-specific numbers before signing a lease, not just the headline state bracket.
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