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Maryland Income Tax Calculator

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DEC 23, 2021

Overview of Maryland Taxes

Maryland has a progressive state income tax, as well as income taxes in every county. The state sales tax is in the middle of the pack nationally, as well as the average effective property tax rate.

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Household Income
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Location
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Filing Status
401(k) Contribution
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IRA Contribution
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Itemized Deductions
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Number of State Personal Exemptions
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Your Income Taxes Breakdown

Tax Type Marginal 
Tax Rate
Effective 
Tax Rate
2021 
Taxes*
Federal
FICA
State
Local
Total Income Taxes
Income After Taxes
Retirement Contributions
Take-Home Pay

* These are the taxes owed for the 2021 - 2022 filing season.

Your 2021 Federal Income Tax Comparison

  • Your marginal federal income tax rate
  • Your effective federal income tax rate
  • Your federal income taxes

Total Estimated 2021 Tax Burden

Income Tax $
Sales Tax $
Fuel Tax $
Property Tax$
Total Estimated Tax Burden $
Percent of income to taxes = %
$
  • About This Answer

    Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions. Also, we separately calculate the federal income taxes you will owe in the 2020 - 2021 filing season based on the Trump Tax Plan.

    How Income Taxes Are Calculated

    • First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
    • Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as one’s spouse or children.
    • Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year.
    • Your location will determine whether you owe local and / or state taxes.
    ...read more
  • Last Updated: January 1, 2021

    When Do We Update? - We regularly check for any updates to the latest tax rates and regulations.

    Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com.

    ...read more
  • Our Expert

    ...read more
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Taxes in Maryland

Maryland State Tax Quick Facts

  • State income tax: 2.00% - 5.75%
  • County income tax: 2.25% - 3.20%
  • Sales tax: 6.00%
  • Property tax: 1.06% average effective rate
  • Gas tax: 27.10 cents per gallon of regular gasoline, 27.85 cents per gallon of diesel

Maryland is among the states in which local governments levy their own taxes on personal income. Specifically, counties in Maryland collect income taxes with rates ranging from 2.25% to 3.20%. Additionally, there is a statewide income tax in Maryland, with a top rate of 5.75%.

These combined state and local taxes place Maryland in the top half of U.S. states for income taxes. Its state sales tax of 6% is fairly par for the course on a national scale, though. The state’s property taxes, at an average effective rate of 1.06%, are slightly higher than average. Of course, all of these taxes and rates are subject to their own specific rules and exceptions. Here we’ll take a closer look into the Maryland state tax system.

A financial advisor in Maryland can help you understand how these taxes fit into your overall financial goals. Financial advisors can also help with investing and financial plans, including retirement, homeownership, insurance and more, to make sure you are preparing for the future.

Maryland Income Taxes

There are both state and county income taxes in Maryland. The state tax is structured based on income brackets, similar to the federal tax system.,

Income Tax Brackets

Single Filers
Maryland Taxable IncomeRate
$0 - $1,0002.00%
$1,000 - $2,0003.00%
$2,000 - $3,0004.00%
$3,000 - $100,0004.75%
$100,000 - $125,0005.00%
$125,000 - $150,0005.25%
$150,000 - $250,0005.50%
$250,000+5.75%
Married, Filing Jointly
Maryland Taxable IncomeRate
$0 - $1,0002.00%
$1,000 - $2,0003.00%
$2,000 - $3,0004.00%
$3,000 - $150,0004.75%
$150,000 - $175,0005.00%
$175,000 - $225,0005.25%
$225,000 - $300,0005.50%
$300,000+5.75%
Married, Filing Separately
Maryland Taxable IncomeRate
$0 - $1,0002.00%
$1,000 - $2,0003.00%
$2,000 - $3,0004.00%
$3,000 - $100,0004.75%
$100,000 - $125,0005.00%
$125,000 - $150,0005.25%
$150,000 - $250,0005.50%
$250,000+5.75%
Head of Household
Maryland Taxable IncomeRate
$0 - $1,0002.00%
$1,000 - $2,0003.00%
$2,000 - $3,0004.00%
$3,000 - $150,0004.75%
$150,000 - $175,0005.00%
$175,000 - $225,0005.25%
$225,000 - $300,0005.50%
$300,000+5.75%

In addition to those statewide tax rates, taxpayers in Maryland pay additional income taxes based on the county in which they live (not where they work). County income taxes are assessed at a flat rate, which means the rate does not change based on income level. In other words, there are no brackets for these rates. The table below shows the resident tax rates for every county in Maryland, while nonresidents pay a flat 2.25% rate.

County Income Tax Rates

JurisdictionResident Rate
Allegany County3.05%
Anne Arundel County2.81%
Baltimore City3.20%
Baltimore County3.20%
Calvert County3.00%
Caroline County3.20%
Carroll County3.03%
Cecil County3.00%
Charles County3.03%
Dorchester County3.20%
Frederick County2.96%
Garrett County2.65%
Harford County3.06%
Howard County3.20%
Kent County3.20%
Montgomery County3.20%
Prince George's County3.20%
Queen Anne's County3.20%
St. Mary's County3.17%
Somerset County3.20%
Talbot County2.40%
Washington County3.20%
Wicomico County3.20%
Worcester County2.25%

The above rates apply to Maryland taxable income. Maryland taxable income is based on your federal adjusted gross income (AGI), but with some differences. While the number of personal exemptions in Maryland will equal the number of exemptions on your federal tax return, the exemption amount is different.

For single filers with an income less than $100,000, or joint filers with an income of less than $150,000, the exemption is $3,200. For single filers with income between $100,000 and $125,000, the exemption falls to $1,600; from $125,000 to $150,000 it falls to $800; and for single filers with AGI greater than $150,000 there is no exemption. For joint filers or heads of household, the exemption is $3,200 up to $150,000 in income, $1,600 from $150,000 to $175,000, $800 up to $200,000 and $0 beyond that.

Additionally, there are a number of deductions and credits available to taxpayers in Maryland. Taxpayers making a contribution to the Maryland Prepaid College Trust or the Maryland Broker-Dealer Investment Plan may claim a deduction of up to $2,500 per year (extra contributions may be carried over to subsequent years). Credits can be claimed for, among other things, income taxes paid in other states and for childcare expenses.

Maryland Sales Tax

The sales tax in Maryland is 6%. Unlike many other states, there are no local sales taxes anywhere in Maryland. Therefore, this rate does not vary depending on your location within the state. It applies to most goods, including personal property like furniture and clothing, but not to most services.

Alcoholic beverages are taxed at a higher rate, $0.09 per gallon of beer, $0.40 per gallon of wine and $1.50 per gallon of liquor. However, most food sold at grocery stores or markets is not subject to sales tax at all. Prepared food as served in a restaurant is taxed at the 6% rate.

Maryland Property Tax

There are 179 separate tax authorities that collect property taxes in Maryland, including all 23 counties, the City of Baltimore and 155 incorporated cities. Rates vary depending on the district in which the home is located, but the statewide average effective rate (taxes paid as a percentage of home value) is 1.06%. This is slightly below the average among U.S. states of 1.07%. Baltimore County has one of the highest effective property tax rates in the state at 1.17%, while Talbot County’s rate of 0.68% is lowest.

If you are looking to purchase a house or refinance your Maryland residence, take a look at our Maryland mortgage rates guide for all you need to know about mortgages in Maryland.

Maryland Estate Tax and Inheritance Tax

Maryland has both an estate tax and an inheritance tax. Estate taxes are paid by the estate, while inheritance taxes are paid by the heirs. The 2021 exemption for taxable estates is $5 million. Estates below that level do not need to pay the estate tax. Estates above that exemption pay a rate of up to 16%, with most estates paying closer to 10% of the value of the gross estate.

Even if an estate is exempt from the estate tax, heirs may still have to pay the inheritance tax. Property passed on to a child or direct descendent, the spouse of a child or direct descendent, a spouse, parent, grandparent, sibling, stepchild or stepparent is exempt from inheritance tax. Property passed on to anyone else, including friends or colleagues, is subject to a 10% inheritance tax rate.

Maryland Cigarette Tax

Maryland taxes cigarettes at $3.75 per pack of 20. Cigars face a tax rate of 70% of the wholesale price and other tobacco products face a rate of 53% of the wholesale price.

Maryland Gas Tax

The statewide gas tax in Maryland is 27.10 cents per gallon regular fuel, which is fairly average compared to the rest of the country. The tax on diesel is 27.85 cents per gallon, also quite average.

Photo credit: flickr
  • The Capital of Maryland is Annapolis, which is also home to the United States Naval Academy and was the site of the Continental Congress in 1783-84.
  • Maryland has an area of 12,406 square miles, making it roughly the size of Belgium.
  • The Chesapeake Bay is the largest estuary in the United States and dominates the geography of Eastern Maryland.