Maryland Tax Brackets
How to read this: Only the income within each bracket is taxed at that rate. Your total tax is the sum across brackets.
| Income Range | Tax Rate |
|---|---|
| $0 - $1,000 | 2.00% |
| $1,000 - $2,000 | 3.00% |
| $2,000 - $3,000 | 4.00% |
| $3,000 - $100,000 | 4.75% |
| $100,000 - $125,000 | 5.00% |
| $125,000 - $150,000 | 5.25% |
| $150,000 - $250,000 | 5.50% |
| $250,000 - $500,000 | 5.75% |
| $500,000 - $1.00M | 6.25% |
| $1.00M+ | 6.50% |
Brackets shown for single filers. Married filing jointly brackets may differ. Use the calculator above to see your specific situation.
Key Facts That Affect Your Take-Home Pay
- Maryland uses a progressive income tax system with eight brackets, starting at 2% for the first $1,000 of income and escalating to a top rate of 5.75% for income above $250,000 (single) or $300,000 (married), making Maryland's bracket structure relatively complex with compressed brackets at lower income levels.
- Maryland's progressive brackets are extremely compressed at the bottom, meaning the first three brackets cover very low dollar amounts ($1,000-$3,000), so most middle and high earners quickly reach the higher 4.75%-5.75% rates. For a $100,000 earner, almost all income is taxed at 4.75%-5.75%, making the effective rate very close to the top bracket rate for most taxpayers.
- Maryland does not levy income taxes locally, ensuring no location-specific differences in your paycheck. All Maryland residents have the same income tax structure—only the state progressive brackets apply.
Common Mistakes People Make
Misconception: 'Progressive tax means I'll pay different rates across brackets in Maryland.' Reality: Maryland's progressive system is so compressed at the bottom that virtually all taxpayers earning above $5,000-$10,000 pay the 4.75%-5.75% rates on almost all their income. A $100,000 earner pays 4.75%-5.75% on ~ $97,000+ of their income, making their effective rate around 4.7%-5.7%—essentially a flat-like 5% rate for most taxpayers. The 'progressive' label is technically accurate but practically irrelevant for most earners.
Misconception: 'Maryland's top rate of 5.75% is low, so I'll pay less than in other states.' Reality: While Maryland's top rate is lower than some high-tax progressive states, the compressed brackets mean most earners quickly reach 4.75%-5.75% rates. A $100,000 earner in Maryland pays an effective rate around 4.7%-5.7% (~ $4,700-$5,700 annually), while the same earner in a flat-tax state like Pennsylvania would pay $3,070 (3.07% flat, though PA may have local EIT), and in Virginia would pay $5,750 (5.75% top rate on most income). The compressed brackets make Maryland less favorable for most earners than flat-tax states.
Misconception: 'No local taxes means Maryland is cheaper than other states.' While Maryland avoids local income tax complications, the progressive income tax with compressed brackets (most earners pay 4.75%-5.75%) combined with sales taxes (6%) and property taxes (especially in Baltimore and surrounding areas) can create a significant tax burden. A high earner in Maryland pays 4.75%-5.75% on most income, while a high earner in a flat-tax state like Pennsylvania pays 3.07% flat (though PA may have local EIT). Factor in all taxes when comparing Maryland to other states.
One Thing to Know
Maryland's brackets are so compressed that the first three brackets cover only $3,000 total—meaning almost everyone hits the higher rates immediately. Many people see the 2% starting rate and assume they'll pay low taxes, not realizing how quickly the brackets compress.
Important Notes
These calculations are estimates based on current tax law. Your actual take-home pay varies based on:
- Pre-tax deductions (401(k), health insurance, HSA, etc.)
- Your W-4 withholding elections
- Additional income or deductions at tax time
- Individual circumstances and tax situations
Tax rates are subject to change. Federal and state tax laws may be updated annually. This is not tax advice. For personalized help, consult a tax professional familiar with Maryland tax laws.