Maryland taxes and cost of living (2026)
Maryland has a graduated income tax from 2.00% to 6.50%. A $100,000 salary is worth about $61,896 a year in national buying power after every tax and Maryland's prices, #46 of 51 (the state average is $70,397). Retiring on $50,000 a year takes about $1.42M, #46 lowest.
- State income tax
- 2.0%–6.50%
- Sales tax (avg. combined)
- 6.00%
- Property tax (effective)
- 0.95%
- Cost of living
- 105.0
- US = 100
- Social Security taxed?
- No
- Median home
- $436K
Take-home pay in Maryland
Single filer, 10% of salary to a pre-tax 401(k), standard deduction, renting. All taxes include estimated sales tax.
| Salary | Federal | FICA | State + local | All-in tax rate | Take-home | In US dollars |
|---|---|---|---|---|---|---|
| $50,000 | $3,220 | $3,825 | $2,927 | 21.0% | $35,028 | $33,373 |
| $75,000 | $6,020 | $5,738 | $4,671 | 22.9% | $51,071 | $48,658 |
| $100,000 | $10,970 | $7,650 | $6,415 | 26.0% | $64,965 | $61,896 |
| $150,000 | $21,134 | $11,475 | $10,167 | 29.5% | $92,224 | $87,867 |
| $250,000 | $43,304 | $15,514 | $17,850 | 31.7% | $148,332 | $141,324 |
What it takes to retire in Maryland
Married couple, age 60, withdrawals 60% from 401(k)/IRA, 20% Roth, 20% brokerage, no Social Security yet, renting. Spending at US-average prices.
| Spending | At MD prices | Income taxes | All taxes | FI number |
|---|---|---|---|---|
| $40,000 | $41,984 | $1,279 | $2,085 | $1.08M |
| $60,000 | $62,975 | $3,282 | $4,491 | $1.66M |
| $80,000 | $83,967 | $5,990 | $7,602 | $2.25M |
| $120,000 | $125,951 | $11,987 | $14,405 | $3.45M |
Maryland tax rules at a glance
- Income tax: Maryland has a graduated income tax from 2.00% to 6.50%. 2025 Budget Reconciliation and Financing Act (Ch. 604) added 6.25%/6.5% brackets and a flat $3,350/$6,700 standard deduction, indexed from 2026; the 2026 indexed amount was not found, so the 2025 amount is used. Exemption $3,200 per person, reduced above FAGI $100,000 single / $150,000 MFJ and zero above $150,000 / $200,000. Itemized deductions are reduced by 7.5% of FAGI over $200,000. 2% capital gains surtax: see capital_gains. Local tax also applies.
- Local income tax: Every county and Baltimore City levies a local income tax on Maryland taxable income, 2.25% (Worcester) to 3.30% (max since 2026). Most large jurisdictions are at 3.20% (Montgomery, Prince George's, Baltimore City, Baltimore County). Anne Arundel and Frederick use graduated rates. For 2026, Allegany rose to 3.2% and Kent to 3.3%.
- Social Security: Not taxed. Fully exempt.
- Retirement income: Age 65+: up to $40,600 of employer pension, 401(k) and 403(b) income excluded (reduced by Social Security), but not IRA withdrawals. The calculator assumes rolled-over IRAs, so no exclusion is applied.
- Capital gains: Taxed as ordinary income (state plus local). An extra 2% tax applies to net capital gains when FAGI exceeds $350,000 (tax years after 2024), with exceptions such as a primary residence sold for under $1.5M and retirement accounts.
- Sales tax: 6.00% state rate, 6.00% average with local taxes; groceries exempt.
Compare Maryland with
Frequently asked questions
Does Maryland have a state income tax?
Maryland has a graduated income tax from 2.00% to 6.50%. 2025 Budget Reconciliation and Financing Act (Ch. 604) added 6.25%/6.5% brackets and a flat $3,350/$6,700 standard deduction, indexed from 2026; the 2026 indexed amount was not found, so the 2025 amount is used. Exemption $3,200 per person, reduced above FAGI $100,000 single / $150,000 MFJ and zero above $150,000 / $200,000. Itemized deductions are reduced by 7.5% of FAGI over $200,000. 2% capital gains surtax: see capital_gains. Local tax also applies.
How much is $100,000 after taxes in Maryland?
A single filer earning $100,000 who puts $10,000 in a 401(k) takes home about $64,965 after federal, state and local income taxes and payroll taxes, an all-in effective rate of 26.0% including estimated sales tax.
Does Maryland tax Social Security?
No. Maryland does not tax Social Security benefits. Fully exempt.
How much do you need to retire in Maryland?
To spend $50,000 a year (at US-average prices) with withdrawals mostly from a 401(k)/IRA, you'd need about $1.42M in Maryland using the 4% rule, after its cost of living and taxes.
Is Maryland expensive to live in?
Maryland's cost of living index is 105.0, where the US average is 100 (BEA Regional Price Parities, 2024). The median home is worth about $436,300 and median rent is $1,721 a month.
How this is calculated
- Income taxes use 2026 federal and state brackets, standard deductions and personal exemptions or credits. No itemized deductions or other credits. Local income taxes use a typical statewide rate (for example, Maryland's county taxes or New York City's); many places have none.
- Payroll taxes include Social Security (6.2% up to the wage base), Medicare, and employee-paid state programs such as California SDI or Washington's paid leave premium. A married household salary is treated as two equal earners for payroll-tax caps.
- Cost of living uses the Bureau of Economic Analysis's Regional Price Parities (2024), where the US average is 100. Spending you enter at national prices is scaled by each state's index.
- Sales tax is estimated as the average combined state and local rate on about a third of spending (more where groceries are taxed). It is shown for context but not added to costs, because the price parities already include it. Property tax applies the state's effective rate to its median home value (Census ACS 2024) if you own.
- Retirement solves for the withdrawal that covers your spending plus the taxes it triggers, using each state's treatment of Social Security, retirement-account withdrawals and capital gains, then multiplies by 25 (a 4% withdrawal rate).
- Years to FI starts from zero, adds what you save each year in that state, and grows it at a 5% real return until it reaches that state's FI number.
Estimates for comparison, not tax advice. Your actual taxes depend on deductions, credits, where in the state you live and more. Sources: BEA Regional Price Parities, Census ACS, state sales tax rates, IRS, state revenue departments (per state).