The Maryland tax rate depends on which tax you’re asking about. The state income tax runs on a graduated scale from 2% to 5.75%, every county adds a local income tax of 2.25% to 3.30%, and the statewide sales tax is 6% with no local add-ons. Maryland also charges property taxes, a flat 8.25% corporate income tax, and both an estate tax and an inheritance tax. Combined state and local income tax works out to roughly 4.25% at the low end and 9.05% at the top.
State Income Tax Brackets
Maryland uses eight graduated brackets, so each slice of your income is taxed at a progressively higher rate. The lowest and highest rates are the same for every filer, but the thresholds in between depend on how you file.
Single filers and married individuals filing separately pay:
- 2% on the first $1,000 of taxable income
- 3% on income from $1,001 to $2,000
- 4% on income from $2,001 to $3,000
- 4.75% on income from $3,001 to $100,000
- 5% on income from $100,001 to $125,000
- 5.25% on income from $125,001 to $150,000
- 5.5% on income from $150,001 to $250,000
- 5.75% on all income above $250,000
These rates are set by Maryland Tax-General § 10-105.1Maryland General Assembly. Maryland Tax – General Code Section 10-105 – State Income Tax Rates
Joint filers, heads of household, and qualifying surviving spouses get wider brackets before the higher rates kick in:
- 2% on the first $1,000
- 3% on income from $1,001 to $2,000
- 4% on income from $2,001 to $3,000
- 4.75% on income from $3,001 to $150,000
- 5% on income from $150,001 to $175,000
- 5.25% on income from $175,001 to $225,000
- 5.5% on income from $225,001 to $300,000
- 5.75% on all income above $300,000
A joint filer earning $200,000 sits in the 5.25% bracket. A single filer at the same income is already in the 5.5% bracket.1Maryland General Assembly. Maryland Tax – General Code Section 10-105 – State Income Tax Rates
Standard Deduction and Personal Exemptions
Starting with the 2025 tax year, Maryland replaced its old percentage-based standard deduction with fixed amounts. Single filers and those married filing separately get $3,350. Joint filers, heads of household, and qualifying surviving spouses get $6,700.2Comptroller of Maryland. Tax Alert – Changes to Standard and Itemized Deductions and to State and Local Income Tax Rates
Each taxpayer can also claim a $3,200 personal exemption for themselves and each dependent. The exemption phases out at higher incomes. For single filers, it begins shrinking once federal adjusted gross income passes $100,000 and reaches zero above $175,000. For joint filers, the phaseout starts at $150,000. Taxpayers age 65 or older, or those who are blind, get an extra $1,000 exemption that is not subject to the phaseout.3Comptroller of Maryland. Exemptions Worksheet
Local Income Tax by County
Every Maryland resident owes a local income tax on top of the state tax. Maryland Tax-General § 10-106 requires each of the 23 counties and Baltimore City to set a rate between 2.25% and 3.30% of Maryland taxable income.4Maryland General Assembly. Tax – General 10-106 The state collects the local tax along with your state return and routes it to your county, so there is no separate local filing.
For 2026, most counties set their rate at 3.20%, including Baltimore City, Baltimore County, Anne Arundel, Montgomery, Howard, Prince George’s, and Calvert. Dorchester and Kent sit at the 3.30% ceiling. Worcester charges the 2.25% minimum, and Talbot is at 2.40%. Garrett is at 2.65%, Cecil at 2.74%, and Washington at 2.95%. Anne Arundel and Frederick use graduated local rate structures rather than a single flat figure.5Maryland Department of Legislative Services. Local Tax Rates 2026
The local tax follows where you live, not where you work. A Worcester County resident commuting to a job in another county still pays Worcester’s 2.25%.
If You Work Across State Lines
Maryland has reciprocal tax agreements with Pennsylvania, Virginia, West Virginia, and the District of Columbia. If you live in Maryland and earn wages in one of those jurisdictions, you won’t owe income tax to that state on your wages, and the reverse applies to their residents working in Maryland.6Comptroller of Maryland. Administrative Release No. 3 – Nonresident Credits, Reciprocal Income Tax Agreements One catch: except for West Virginia, reciprocity does not apply if you maintain a home in the other state for more than six months and are physically present there for 183 days or more during the year.
Nonresidents who work in Maryland from a state without a reciprocity agreement owe both Maryland state income tax and a nonresident local income tax, unless their home state provides equivalent credits for Maryland residents.6Comptroller of Maryland. Administrative Release No. 3 – Nonresident Credits, Reciprocal Income Tax Agreements
Sales and Use Tax
Maryland’s general sales and use tax rate is 6%, applied to most retail purchases of goods and taxable services. Alcoholic beverages carry a 9% rate on the price of the drink itself; any separately stated service charges on that sale are taxed at the standard 6%.7Maryland General Assembly. Maryland Code Tax-General 11-104 Counties and cities cannot add their own sales tax, so the rate is identical across the state.
Several categories are exempt. Prescription and over-the-counter medicine, disposable medical supplies, and diabetic care items are not taxed.8Maryland General Assembly. Maryland Tax – General Code Section 11-211 – Exemptions Most food bought for consumption at home is exempt, while prepared meals and restaurant food are taxable.
Digital downloads such as e-books, music, movies, and software bought for personal use are taxed at 6%. Each subscription payment counts as a separate sale, so streaming contracts signed years ago still trigger tax on each new payment.9Comptroller of Maryland. Business Tax Tip 29 – Sales of Digital Products and Digital Code Beginning July 1, 2025, Maryland also taxes data services, information technology services, and software publishing services at a reduced 3% rate when sold for enterprise use.10Comptroller of Maryland. Technical Bulletin 56 – Sales and Use Tax on Data or Information Technology Services
Property Tax
Maryland property tax comes from multiple layers: state, county, and often a municipality. The state rate is $0.112 per $100 of assessed value on all real property. County rates vary widely. Montgomery County has the lowest at roughly $0.674 per $100, while Baltimore City charges the highest at $2.248 per $100. Most counties fall between $0.90 and $1.10. Municipal taxes stack on top where they apply.11Maryland Department of Assessments and Taxation. 2025-2026 Tax Rates and Homestead Credit Caps
The Homestead Tax Credit limits how fast your taxable assessment can rise. Every county must cap the annual increase at 10% or less for the state portion of the tax, and many counties set a lower cap for their own portion. If your home’s assessed value jumps by more than the cap, you pay only on the capped increase. To qualify, the property must be your principal residence, you must have lived there for at least six months including July 1, and you need to submit a one-time application. Only one property per owner qualifies.12Maryland Department of Assessments and Taxation. Homestead Tax Credit
Estate and Inheritance Taxes
Maryland is one of a few states that charges both an estate tax and an inheritance tax. They work differently. The estate tax is calculated on the total value of what the deceased owned. The inheritance tax is charged to the person receiving a share.
The estate tax applies when a deceased person’s estate exceeds $5 million. That exclusion has been fixed since 2019. Married couples can effectively shield up to $10 million by using the deceased spouse’s unused exclusion.13Maryland General Assembly. Maryland Tax – General Code Section 7-309 – Effect of Federal Credit For estates above the threshold, the maximum rate is 16% on the amount over the exclusion. Qualified agricultural property gets a separate break: up to $5 million of farm value can be excluded, and any tax on farm value above that is capped at 5%.14Comptroller of Maryland. What You Need to Know About Marylands Estate Tax
The inheritance tax is a flat 10% on the value of property received from a deceased person.15Maryland General Assembly. Maryland Tax – General Code Section 7-204 – Tax Rate Most close relatives are fully exempt: grandparents, parents and stepparents, spouses, children and stepchildren, grandchildren and other lineal descendants, siblings, and spouses of children or descendants.16Maryland General Assembly. Maryland Tax – General Code Section 7-203 – Exemptions The 10% hits more distant relatives, friends, and unrelated beneficiaries. If you’re a niece, nephew, cousin, or family friend named in a will, plan for the tax.
Corporate Income Tax
Maryland taxes corporate income at a flat 8.25% on net income allocated to the state.1Maryland General Assembly. Maryland Tax – General Code Section 10-105 – State Income Tax Rates Corporations start from federal taxable income and apply Maryland-specific adjustments. Corporate returns are due on the 15th day of the fourth month after the tax year ends, which is April 15 for calendar-year filers.
Filing Deadline
Individual income tax returns follow the federal calendar. For the 2025 tax year, returns are due April 15, 2026. You can request an extension by filing Form 502E by that date, but an extension to file is not an extension to pay. Interest and penalties start accruing immediately on unpaid tax after April 15, so submit estimated payment with the extension request if you expect to owe. Local income tax is calculated and collected through your state return, so there is no separate county filing to complete.