Maryland Paycheck Calculator Updated Edition
Maryland is one of the only states in the country where every single resident pays a local income tax on top of the state tax — no opt-out, no minimum population threshold, no exceptions. Your county of residence on the last day of the year decides whether that second layer costs you 2.25% or 3.30% more. This calculator builds in both layers using the actual Maryland statute, not an averaged or estimated rate.
📈 What If My Pay Changes?
Drag the slider to instantly see how a raise or pay cut changes your Maryland take-home pay — state and county tax included.
Why Your Maryland Paycheck Depends on More Than Your Salary — It Depends on Your Address
Move from Worcester County to Montgomery County without changing your salary by a single dollar, and your Maryland tax bill still goes up. That’s not a quirk — it’s how the state’s tax system is designed. Maryland is one of the only states where every county, plus Baltimore City, runs its own mandatory income tax on top of the state’s rate, and there is no way to live in Maryland and skip it. Most paycheck calculators either ignore this entirely or apply a single statewide average, which can be off by a meaningful amount depending on where you actually live. This calculator asks for your county directly because, in Maryland, that answer changes your real take-home pay more than almost anything else on this page.
Maryland’s Ten-Bracket State Tax, From 2% to 6.5%
Maryland’s state income tax climbs through ten brackets, not the eight you’ll see on most older tax guides — two new top brackets were added for tax years beginning after December 31, 2024. For a single filer, the rate starts at 2% on the first $1,000 of taxable income, climbs through 3%, 4%, and a long 4.75% bracket that covers most of the $3,000-to-$100,000 range, then continues up through 5%, 5.25%, and 5.5% before reaching 5.75% above $250,000. Above $500,000, a new 6.25% bracket applies, and above $1,000,000, the top rate is 6.5%. Married couples filing jointly get wider brackets throughout, with the 5.75% tier not starting until $300,000 and the top 6.5% rate reserved for income above $1,200,000.
The County Tax: Not Optional, Not the Same Everywhere
Here’s the part that catches a lot of people off guard, especially those moving in from neighboring Virginia or Pennsylvania, where local income tax is either nonexistent or far less universal. Every one of Maryland’s 23 counties, plus Baltimore City, levies its own income tax calculated on the same Maryland taxable income as the state tax — and it’s collected on the very same return, not a separate filing. Rates currently range from 2.25% in lower-rate counties up to 3.30% in Dorchester and Kent counties for 2026, with most of the state’s largest population centers — Montgomery, Howard, Prince George’s, and Baltimore County — sitting at the 3.20% ceiling that applies to most jurisdictions. A handful of counties, including Anne Arundel and Frederick, have moved to tiered local rates that increase with income, rather than a single flat percentage, adding yet another layer of nuance.
The Capital Gains Surtax Aimed at High Earners
Starting with tax years after December 31, 2024, Maryland added something most states don’t have at all: an additional 2% tax specifically on net capital gains, but only for taxpayers whose federal adjusted gross income exceeds $350,000. Below that threshold, capital gains are taxed exactly like any other income under the regular state brackets — no surtax applies. Above it, several important categories are carved out and stay exempt regardless of income: gains from selling a primary residence under $1,500,000, anything inside a 401(k), 403(b), 457(b), IRA, or Roth IRA, and certain qualifying farm and conservation-easement assets. This is a narrowly targeted provision, but for the high earners it does apply to, it’s a real and often-overlooked addition to their Maryland tax bill.
- Social Security is fully exempt — Maryland never taxes Social Security retirement benefits at the state level, regardless of total income.
- Military retirement gets a generous exclusion — retired service members under 55 can subtract up to $12,500 of military retired pay from Maryland income; at 55 and older, that exclusion rises to $20,000.
- A pension exclusion exists for seniors — residents 65 and older, or those totally disabled, can exclude a substantial amount of other retirement income from Maryland tax.
- A senior tax credit is available — filers 65 or older with federal AGI under set thresholds can claim a credit worth $1,000 to $1,750 depending on filing status.
Federal Tax and FICA Still Apply the Same Way
None of Maryland’s dual-layer complexity changes what happens federally. Social Security is withheld at 6.2% up to the annual wage base, Medicare at 1.45% on every dollar, with an additional 0.9% surtax once your wages clear $200,000 single or $250,000 married filing jointly. Federal income tax still runs through the standard progressive brackets from 10% up to 37%. Maryland’s state-plus-county system only changes what happens after that federal layer — but for Maryland residents, that “after” step is genuinely more involved than in almost any other state in the country.
| Deduction | Rate | Applies To |
|---|---|---|
| Federal Income Tax | 10%–37% | Taxable income after deductions |
| Maryland State Income Tax | 2%–6.5% (10 brackets) | Taxable income after standard deduction |
| Maryland County / Local Tax | 2.25%–3.30% | Same taxable income base, rate set by county of residence |
| Maryland Capital Gains Surtax | +2% | Net capital gains, only if federal AGI exceeds $350,000 |
| Social Security | 6.2% | Wages up to the current annual wage base |
| Medicare | 1.45% | All earned income |
| Additional Medicare Tax | 0.9% | Income above $200,000 (single) / $250,000 (married) |
Frequently Asked Questions
What are Maryland’s state income tax rates?
Maryland uses ten progressive brackets ranging from 2% to 6.5%. Most middle-income filers fall into the 4.75% bracket, which covers a wide range of income from $3,000 up to $100,000 for single filers (up to $150,000 for joint filers). Two new top brackets, 6.25% and 6.5%, were added for tax years beginning after 2024.
Do all Maryland counties charge a local income tax?
Yes. All 23 Maryland counties and Baltimore City levy a mandatory local income tax with no opt-out, ranging from 2.25% to 3.30% depending on where you live as of the last day of the tax year. This is collected on the same state return, not filed separately.
Which Maryland county has the highest local income tax?
Dorchester County and Kent County currently charge the highest rate at 3.30% for 2026. Montgomery, Howard, Prince George’s, and Baltimore County sit at 3.20%, which is the standard ceiling most jurisdictions use.
Does Maryland tax capital gains?
Yes, generally at the same rates as ordinary income. However, an additional 2% surtax applies specifically to capital gains for taxpayers with federal adjusted gross income over $350,000, with exemptions for primary residence sales under $1.5 million, retirement accounts, and certain farm assets.
What is Maryland’s standard deduction for 2026?
For tax years after 2024, Maryland’s standard deduction is a flat $3,350 for single, married filing separately, or dependent filers, and $6,700 for married filing jointly, head of household, or qualifying surviving spouse filers — with no income-based phase-in.
Is Social Security taxed in Maryland?
No. Maryland fully exempts Social Security retirement benefits from state income tax, regardless of your total income level.
How accurate is this Maryland paycheck calculator?
This tool applies the Maryland Comptroller’s official 2026 state tax brackets, current county local tax rates, the capital gains surtax rules, current federal tax brackets, and FICA rates to produce a close estimate. Actual withholding can vary based on your employer’s payroll system and your Form MW507 elections.
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This calculator provides estimates based on the Maryland Comptroller’s official state tax brackets, current county local tax rates, current federal tax brackets, and FICA rates for general informational purposes only. It does not constitute tax or financial advice. Anne Arundel and Frederick County rates shown are simplified blended approximations of their tiered local structures. Maryland’s brackets, county rates, and surtax thresholds are subject to annual change — consult a licensed tax professional or the Comptroller of Maryland for guidance specific to your situation.