Quick Answer
Maryland state income tax ranges from 2% to 5.75% for 2026, plus local county taxes of 2.25% to 3.20%. Combined, most Maryland residents pay 4.75% to 8.95% total state and local income tax. A $70,000 salary typically results in about $4,200-$5,600 annually depending on your county.
Best Answer
Sarah Chen, Payroll Tax Analyst
Maryland residents with W-2 jobs who need to understand both state and local tax withholding
How much is Maryland state income tax?
Maryland has a unique two-tier income tax system: state income tax ranging from 2% to 5.75%, plus mandatory local county income taxes ranging from 2.25% to 3.20%. This means your total Maryland income tax depends on both your income level and which county you live in.
Maryland 2026 state income tax brackets
For single filers:
For married filing jointly:
Local county tax rates (2026)
Maryland's 23 counties and Baltimore City each set their own income tax rates:
Highest rates:
Moderate rates:
Lower rates:
Example: $70,000 salary in Montgomery County
Maryland state tax calculation:
1. First $1,000 × 2% = $20
2. Next $1,000 × 3% = $30
3. Next $1,000 × 4% = $40
4. Remaining $67,000 × 4.75% = $3,183
5. Total state tax: $3,273
Montgomery County local tax:
$70,000 × 3.20% = $2,240
Combined total: $3,273 + $2,240 = $5,513 annually
This equals about $212 per biweekly paycheck.
How Maryland withholding works
According to Maryland Comptroller Publication 13, employers use combined withholding tables that include both state and local rates. Your employer automatically withholds the correct county rate based on your work address, not your residence address.
Important: If you live and work in different Maryland counties, you may need to file additional forms to ensure proper withholding and avoid year-end surprises.
Key factors affecting Maryland tax
What you should do
Use our paycheck calculator to determine your exact Maryland take-home pay. Enter your salary, county, and filing status to see the combined impact of state and local taxes. Remember that Maryland's dual tax system means higher effective rates than many other states.
Key takeaway: Maryland residents pay both state tax (2%-5.75%) and county tax (2.25%-3.20%), resulting in combined rates of roughly 4.75%-8.95%. A $70,000 salary in Montgomery County results in about $5,513 total state and local income tax.
Key Takeaway: Maryland residents pay both state tax (2%-5.75%) and county tax (2.25%-3.20%), resulting in combined rates of roughly 4.75%-8.95%.
Maryland combined state and local income tax rates by county for 2026
| County | Local Rate | Combined Rate (with State)* | Example: $70K Salary |
|---|---|---|---|
| Baltimore City | 3.20% | 7.95% | $5,565 |
| Montgomery | 3.20% | 7.95% | $5,565 |
| Prince George's | 3.05% | 7.80% | $5,460 |
| Anne Arundel | 2.81% | 7.56% | $5,292 |
| Howard | 2.96% | 7.71% | $5,397 |
| Worcester | 2.25% | 7.00% | $4,900 |
More Perspectives
Sarah Chen, Payroll Tax Analyst
New Maryland residents navigating the complex state and local tax system
Maryland tax for new residents
Moving to Maryland means adjusting to one of the most complex state tax systems in the U.S. You'll pay both Maryland state income tax and local county income tax, which can significantly impact your take-home pay.
Part-year resident considerations
As a part-year Maryland resident, you'll file Form 502 and pay Maryland tax only on income earned while a Maryland resident. However, you must pay both state and local rates for the period you lived in Maryland.
County tax complications
Unlike most states, Maryland local tax is based on where you work, not where you live. This creates unique situations:
Example: If you live in Anne Arundel County (2.81% local rate) but work in Montgomery County (3.20% local rate), you pay Montgomery County's higher rate.
Common moving scenarios
From no-tax states: Moving from states like Florida or Tennessee means your take-home pay will drop significantly. A $80,000 salary that previously had no state tax will now have approximately $6,000-$7,000 in combined Maryland state and local taxes.
From other states: Maryland's combined rates often exceed other states' rates. Even moving from moderate-tax states may result in higher overall tax burden.
Immediate steps for new residents
1. Update your W-4 withholding - Maryland withholding may be higher than your previous state
2. Verify your county - Ensure your employer knows which county you work in
3. Budget for the change - Factor 6-9% of your salary for combined state and local taxes
Key takeaway: New Maryland residents face both state and local income taxes that often total 6-9% of income, significantly higher than many other states.
Key Takeaway: New Maryland residents face both state and local income taxes that often total 6-9% of income, significantly higher than many other states.
Sarah Chen, Payroll Tax Analyst
Remote workers dealing with Maryland's work-location-based local tax system
Maryland tax for remote workers
Maryland's local tax system creates unique challenges for remote workers because local tax is based on work location, not residence. This affects remote workers differently than most other states.
Work-from-home complications
If you're a Maryland resident working remotely from home, you pay local tax for the county where you live. However, if you sometimes work at an office in a different county, the situation becomes complex.
Example: You live in Frederick County (2.96% local rate) but occasionally work at your company's office in Montgomery County (3.20% local rate). The allocation of local tax depends on where you primarily perform work.
Out-of-state employer scenarios
Maryland resident, out-of-state employer: You owe Maryland state tax (2%-5.75%) plus local tax for your county of residence. If your out-of-state employer doesn't withhold Maryland taxes, you'll need to make estimated quarterly payments.
Calculation example: $75,000 salary, live in Anne Arundel County, work for Virginia company:
Without withholding, you'd make quarterly payments of about $1,417.
Multi-state credit situations
If another state taxes your income, Maryland provides credits to prevent double taxation. However, you must still pay the full Maryland state and local rates first, then claim credits when filing.
What remote workers should do
1. Determine your primary work location for local tax purposes
2. Request Maryland withholding from out-of-state employers
3. Make estimated payments if withholding is insufficient
4. Keep detailed work location records for complex situations
Key takeaway: Maryland remote workers must navigate both state and local taxes, with local rates based on work location, often requiring estimated payments if working for out-of-state employers.
Key Takeaway: Maryland remote workers must navigate both state and local taxes, with local rates based on work location, often requiring estimated payments if working for out-of-state employers.
Sources
- Maryland Comptroller Publication 13 — Maryland Income Tax Withholding Guide
- IRS Publication 505 — Tax Withholding and Estimated Tax
Related Questions
Reviewed by Sarah Chen, Payroll Tax Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.