How much is Maryland income tax?
Maryland income tax at 3 levels of Maryland taxable income — what is left after Maryland's own deductions and exemptions. Local income taxes are not included.
| Taxable income | Single | Married filing jointly |
|---|---|---|
| $50,000 | $2,3234.6% effective · 4.75% marginal | $2,3234.6% effective · 4.75% marginal |
| $100,000 | $4,6984.7% effective · 5% marginal | $4,6984.7% effective · 4.75% marginal |
| $250,000 | $12,7605.1% effective · 5.75% marginal | $12,3234.9% effective · 5.5% marginal |
What are Maryland's income tax brackets for 2026?
| Taxable income | Rate |
|---|---|
| Up to $1,000 | 2% |
| Over $1,000 up to $2,000 | 3% |
| Over $2,000 up to $3,000 | 4% |
| Over $3,000 up to $100,000 | 4.75% |
| Over $100,000 up to $125,000 | 5% |
| Over $125,000 up to $150,000 | 5.25% |
| Over $150,000 up to $250,000 | 5.5% |
| Over $250,000 up to $500,000 | 5.75% |
| Over $500,000 up to $1,000,000 | 6.25% |
| Over $1,000,000 | 6.5% |
| Taxable income | Rate |
|---|---|
| Up to $1,000 | 2% |
| Over $1,000 up to $2,000 | 3% |
| Over $2,000 up to $3,000 | 4% |
| Over $3,000 up to $150,000 | 4.75% |
| Over $150,000 up to $175,000 | 5% |
| Over $175,000 up to $225,000 | 5.25% |
| Over $225,000 up to $300,000 | 5.5% |
| Over $300,000 up to $600,000 | 5.75% |
| Over $600,000 up to $1,200,000 | 6.25% |
| Over $1,200,000 | 6.5% |
Source: Md. Code, Tax-General §10-105(a)(1)+(a)(2) — both schedules, one subsection; currency confirmed against the DLS fiscal note for HB 352 (2025), checked September 12, 2026.
Can you deduct Maryland income tax on your federal return?
The federal deduction for state and local taxes (SALT) is capped at $40,400 for 2026 — $20,200 if married filing separately — and the cap shrinks toward $10,000 once modified AGI passes $505,000. A single filer with $250,000 of Maryland taxable income owes about $12,760 in Maryland income tax — 32% of that cap before any property tax.
SALT cap workaroundsDoes Maryland have a pass-through entity tax (PTET)?
Yes. A partnership or S corporation can elect to pay Maryland income tax at the entity level. The business deducts it federally, so that state tax is not limited by the SALT cap, and the owners claim a Maryland credit or exclusion for it. Deductsy's plan treats March 15 as the Maryland election or first-payment deadline; it is approximate, so confirm it with Maryland before relying on it.
PTET savings calculatorWhen are Maryland estimated tax payments due?
Maryland estimated tax is due April 15, June 15, September 15 and January 15 of the following year, in 4 equal instalments. Those are the same dates as the federal schedule. 502UP weights each instalment by the share of income received in that period; equal quarters is the level-income case and an explicit exception, not the default computation. Source: MARYLAND FORM 502UP, Underpayment of Estimated Income Tax by Individuals (COM/RAD 017 09/25); Md. Tax-Gen. §10-820(b)(1).
Safe-harbor calculatorWhat is the penalty for underpaying Maryland estimated tax?
Maryland charges interest on an underpaid instalment at the rate it publishes each year: 10.813% for 2026. Paying at least 90% of this year's tax or 110% of last year's on time avoids it. No estimated payments are required if you expect to owe less than $500. Source: MARYLAND FORM 502UP, Underpayment of Estimated Income Tax by Individuals (COM/RAD 017 09/25).
Does Maryland have a local income tax?
Yes. Every Maryland county and Baltimore City adds its own income tax, at a rate state law holds between 2.25% and 3.3%. The Maryland tax figures on this page do not include it.
Are HSA contributions deductible in Maryland?
Yes. Maryland follows the federal treatment, so an HSA contribution — up to $4,400 with self-only coverage or $8,750 with family coverage for 2026 — lowers Maryland taxable income as well as federal.
Does Maryland give a tax break for 529 plan contributions?
Yes. Maryland lets you deduct up to $2,500 a year of contributions to Maryland's own 529 plan ($5,000 on a joint return). Income limits, per-beneficiary caps and carryforwards differ by state, so check the plan's rules.
529 plan tax savings calculatorDoes Maryland take a disability or paid-leave tax out of paychecks?
No, until 2027. Maryland's FAMLI programme is enacted but deductions do not start until 2027. Nothing comes out of a Maryland paycheck for it in 2026 — federal payroll taxes still do.
Which states have tax reciprocity with Maryland?
Maryland has mutual agreements with the District of Columbia, Pennsylvania, Virginia and West Virginia: neither state taxes the other's residents on wages earned there, so those wages are taxed only where you live. Give your employer the exemption certificate and the state you work in stops withholding.
What is the property tax rate in Maryland?
Maryland's average effective property tax rate is 0.97% — the 22nd highest of 51 jurisdictions and 1.1 times the national average of 0.9%. That is about $970 a year for every $100,000 of home value; the rate varies widely by county and school district.
Itemize or take the standard deduction?How much does an LLC cost to keep in Maryland each year?
Deductsy budgets about $300 a year for a Maryland LLC — the annual report fee or minimum franchise tax, with a fee due every two years counted at half. Fees change, so confirm with Maryland's business filing office.
Maryland S-corp tax calculatorHow do Maryland taxes compare with neighboring states?
| State | Top income tax rate | Income tax on $100,000 (single) | Property tax (avg) |
|---|---|---|---|
| Maryland | 6.5% | $4,698 | 0.97% |
| Delaware | 6.6% | $5,584 | 0.5% |
| District of Columbia | 10.75% | $6,900 | 0.58% |
| Pennsylvania | 3.07% | $3,070 | 1.3% |
| Virginia | 5.75% | $5,493 | 0.73% |
| West Virginia | 4.58% | $3,783 | 0.53% |
On $100,000 of taxable income a single filer's Maryland income tax is $4,698 — more than in 2 of 5 neighboring states. The lowest is Pennsylvania at $3,070; the highest is the District of Columbia at $6,900. Maryland's average property tax rate is higher than in 4 of 5.
Income tax is each state's own tax on the same state taxable income; local income taxes are not included.
More Maryland tax notes
- Maryland was one of the first states to enact a pass-through entity tax.
Tax moves that matter most for Maryland
If you own an S corporation, partnership or multi-member LLC, Maryland's PTET election moves the Maryland income tax on that profit to the business, where it is deductible federally and outside the SALT cap.
An S-corp election can cut self-employment tax once profit is large enough to pay yourself a reasonable salary and still cover payroll and filing costs. The Maryland calculator adds Maryland's own entity fees and taxes to that breakeven.
With 1099 income, a Solo 401(k) can take up to $72,000 a year (2026) — usually more than a SEP-IRA at the same income. Contributions lower both federal and Maryland income tax.
Run your Maryland numbers
Open the full optimizer with Maryland pre-selected to see your specific tax picture.
Open the full calculator