Maryland Income Tax Calculator
Maryland added two brand-new top tax brackets for 2025 — and every single county plus Baltimore City layers its own mandatory local tax on top. This take-home pay calculator covers federal tax, Maryland’s ten-bracket schedule, county tax, and FICA in one place.
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How Maryland Income Tax Actually Works
Maryland runs one of the more complex state tax systems in the country, with ten progressive brackets that genuinely differ between single filers and joint filers rather than simply doubling the thresholds. For 2025, lawmakers added two entirely new top brackets that didn’t exist before: 6.25% on taxable income above $500,000 (single) or $600,000 (married filing jointly), and 6.5% above $1,000,000 (single) or $1,200,000 (married filing jointly) — meaningful increases for Maryland’s highest earners. Below those new top tiers, rates step from 2% on the first $1,000 of taxable income through 4.75% on most middle-income earnings.
On top of the state schedule, every single one of Maryland’s 23 counties plus Baltimore City levies its own mandatory local income tax — there is no jurisdiction in Maryland without one. Rates range from 2.25% up to 3.3%, and unlike the graduated state brackets, most county rates are flat, applied as a single percentage of your Maryland taxable income. Maryland also overhauled its standard deduction for 2025: it eliminated the old income-based phase-in formula entirely and now offers a simple flat amount — $3,350 for single, married filing separately, and dependent filers, or $6,700 for married filing jointly, head of household, and qualifying surviving spouse filers, regardless of income level. The $3,200 personal exemption works differently: it phases down in tiers as income rises, dropping to $1,600, then $800, then disappearing completely above $150,000 (single) or $200,000 (married filing jointly/head of household).
A new tax most other states don’t have: starting in 2025, Maryland imposes a 2% capital gains surtax on net capital gains for taxpayers with federal adjusted gross income above $350,000, layered on top of ordinary state and local income tax rates. The surtax carves out an exception for the sale of a primary residence under $1,500,000, so most homeowners selling their main house are unaffected. High earners should also know that itemized deductions phase out for FAGI above $200,000 ($100,000 if married filing separately), reduced by 7.5% of the excess over that threshold.
Frequently Asked Questions
Maryland uses ten progressive brackets for 2025, ranging from 2% on the first $1,000 of taxable income up to a new top rate of 6.5% on income above $1,000,000 (single) or $1,200,000 (married filing jointly). Two new top brackets, 6.25% and 6.5%, were added for the 2025 tax year.
Yes. All 23 Maryland counties and Baltimore City levy a mandatory local income tax in addition to the state rate, ranging from 2.25% to 3.3% depending on the jurisdiction. Unlike the graduated state tax, most county rates are flat.
Yes. For 2025, Maryland eliminated the old income-based phase-in and now offers a flat standard deduction of $3,350 (single, married filing separately, dependent) or $6,700 (married filing jointly, head of household, qualifying surviving spouse) for every taxpayer regardless of income.
Yes, new for 2025. Maryland imposes a 2% surtax on net capital gains for taxpayers with federal adjusted gross income above $350,000, on top of ordinary income tax rates. The surtax does not apply to gains from selling a primary residence under $1,500,000.
Yes. The $3,200 personal exemption is reduced in tiers as income rises and disappears entirely above $150,000 (single) or $200,000 (married filing jointly/head of household), unlike a flat exemption that applies equally at every income level.
No. Maryland does not tax Social Security benefits at the state or local level, regardless of income.
Methodology: Calculations use Maryland’s 2025 ten-bracket state income tax schedule (2% to 6.5%, with separate thresholds for single vs. joint filers per Comptroller of Maryland guidance), the 2025 flat standard deduction ($3,350/$6,700), a tiered personal exemption phase-out ($3,200 base), the new 2% capital gains surtax above $350,000 FAGI, the 2025 IRS federal tax brackets and Child Tax Credit rules (IRS.gov), and 2025 Social Security (6.2% to the $176,100 wage base) and Medicare (1.45% + 0.9% additional Medicare tax) rates. County/local tax is estimated based on the jurisdiction type you select; verify your exact county rate with the Comptroller of Maryland. This tool provides estimates for planning purposes only and is not tax, legal, or financial advice. Last reviewed for accuracy: June 2026.