Allegany County Local Tax Guide (2026)
Understanding how local taxes work in Allegany County, Maryland, and how they affect your take-home pay.
In this guide
Last updated: October 1, 2026
- •Allegany County has a local county tax on the people who live in the county, wherever they work.
- •Residents pay 3.20% on all income.
- •Local tax is separate from Maryland state tax and federal tax. Both are calculated independently and add to your total tax burden.
- •Local tax directly reduces your take-home pay. Combined with state and federal taxes, the total tax burden can be significant for high earners.
What Allegany County local tax costs at three incomes
The 3.20% resident rate is charged on top of federal tax, Maryland state tax and FICA. Priced for 2026, a $75,000 salary loses $2,293 to Allegany County alone and takes home $55,949: a combined 25.4% of gross across all four.
| Salary | Allegany County tax | Maryland tax | Federal + FICA | Take-home | Total rate |
|---|---|---|---|---|---|
| $50,000 | $1,493 | $2,163 | $7,645 | $38,699 | 22.6% |
| $75,000 | $2,293 | $3,351 | $13,408 | $55,949 | 25.4% |
| $120,000 | $3,733 | $5,530 | $26,750 | $83,987 | 30.0% |
Living in Allegany County rather than only working there costs 3.06 percentage points more: $2,293 a year on $75,000, since non-residents pay 0.00%.
How Allegany County compares
Of the 62 US jurisdictions that levy a local income tax, Allegany County ranks 7th by resident rate, level with 13 other jurisdictions. The median is 2.50%, the highest is New York City at 3.078%–3.876%, and the lowest is St. Louis at 1.00%. Immediately above Allegany County sits Kent County (3.30%) and below it Anne Arundel County (2.70%–3.20%).
Within Maryland, 24 jurisdictions charge a local income tax and Allegany County is the 3rd highest. Same salary, different address:
| Maryland jurisdiction | Resident rate | Cost on $75,000 |
|---|---|---|
| Dorchester County | 3.30% | $2,364 |
| Kent County | 3.30% | $2,364 |
| Allegany County | 3.20% | $2,293 |
| Anne Arundel County | 2.70%–3.20% | $1,987 |
| Baltimore City | 3.20% | $2,293 |
| Baltimore County | 3.20% | $2,293 |
| Calvert County | 3.20% | $2,293 |
What local taxes apply in Allegany County
Allegany County has a local county tax on the people who live in the county, wherever they work.
Key Takeaway
| Residency Status | Rate | Applies To |
|---|---|---|
| Resident | 3.20% | All income |
Allegany County has a local county tax on the people who live in the county, wherever they work.
Maryland county income tax follows where you live: Maryland residents pay the rate of the county, or Baltimore City, they live in at the end of the year, wherever they work. People who live in another state generally pay no county tax: most pay Maryland's special nonresident tax instead, and residents of D.C., Virginia, West Virginia and Pennsylvania are exempt on their Maryland wages.
Residents: If you live in Allegany County, you pay 3.20% on all your income.
Want to see this with your numbers? Try the calculator with your numbers →
How they interact with state taxes
Allegany County local tax is calculated separately from Maryland state income tax. Both taxes are calculated on your taxable income and are withheld by your employer.
Tax Deduction
Allegany County local tax is calculated separately from Maryland state income tax. This means:
- Local tax is in addition to state tax, not instead of it
- Both taxes are calculated on your taxable income (or wages, depending on the tax type)
- Your employer withholds both local and state taxes from your paycheck
- You may be able to deduct local tax on your state tax return, depending on Maryland tax rules
For example, if you earn $100,000 in Allegany County, you pay Maryland state tax on that income, plus Allegany County local tax. The local tax doesn't reduce your state taxable income.
Want to see this with your numbers? Try the calculator with your numbers →
Who is affected
You're subject to Allegany County local tax if you live in the county, wherever you work.
You're subject to Allegany County local tax if:
- You live in Allegany County (residents pay on all income)
Want to see this with your numbers? Try the calculator with your numbers →
Common paycheck misconceptions
Common misunderstandings about Allegany County local tax, including when it applies and how it's calculated.
Common misconceptions about Allegany County local tax:
- "It's the same as state tax": False. Local tax is separate from Maryland state tax and is calculated independently.
- "I only pay if I live there": True for residents, but check if non-residents are subject to tax.
- "Remote work means no tax": If you're a Allegany County resident, you typically pay on all income regardless of where you work.
Take-home pay impact
Allegany County local tax directly reduces your take-home pay. The amount depends on your income level and whether you're a resident or non-resident.
Allegany County local tax directly reduces your take-home pay. For example, if you earn $100,000 as a Allegany County resident:
- Local tax: approximately $3093 annually
- This reduces your bi-weekly paycheck by about $119
- Combined with Maryland state tax and federal tax, the total tax burden can be significant
To see exactly how Allegany County local tax affects your paycheck, use our calculator above. You can adjust your income, filing status, and deductions to see how different scenarios affect your net pay.
Want to see this with your numbers? Try the calculator with your numbers →
Does this apply to you?
Determine whether you're subject to Allegany County local tax based on where you live and work.
Check Your Pay Stub
You're subject to Allegany County local tax if:
- You live in Allegany County (residents pay on all income)
You're not subject to Allegany County local tax if you live and work outside the county, even if you're a Maryland resident.