Maryland Tax Brackets Guide – Maryland’s progressive state income tax system uses marginal tax brackets that determine how much you owe based on your taxable income. Whether you’re a resident filing your 2025 return in 2026 or estimating 2026 taxes, understanding the current Maryland tax brackets helps you plan ahead, avoid surprises, and maximize deductions. This comprehensive guide covers the latest official 2025 (and unchanged 2026) state brackets, local county taxes, recent changes, calculation steps, and practical tips for U.S. taxpayers living or working in Maryland.
2025 Maryland State Income Tax Brackets
Maryland uses a graduated (progressive) tax system. Only the income that falls into each bracket is taxed at that rate. The brackets below apply to tax year 2025 (returns filed in 2026) and remain in effect for tax year 2026 based on current withholding guidance.
Single, Married Filing Separately, Dependent, or Fiduciary Filers
| Taxable Net Income | Maryland Tax Calculation |
|---|---|
| $1 – $1,000 | 2.00% |
| $1,001 – $2,000 | $20 + 3.00% of excess over $1,000 |
| $2,001 – $3,000 | $50 + 4.00% of excess over $2,000 |
| $3,001 – $100,000 | $90 + 4.75% of excess over $3,000 |
| $100,001 – $125,000 | $4,697.50 + 5.00% of excess over $100,000 |
| $125,001 – $150,000 | $5,947.50 + 5.25% of excess over $125,000 |
| $150,001 – $250,000 | $7,260 + 5.50% of excess over $150,000 |
| $250,001 – $500,000 | $12,760 + 5.75% of excess over $250,000 |
| $500,001 – $1,000,000 | $27,135 + 6.25% of excess over $500,000 |
| $1,000,001 and over | $58,385 + 6.50% of excess over $1,000,000 |
Married Filing Jointly, Head of Household, or Qualifying Surviving Spouse
| Taxable Net Income | Maryland Tax Calculation |
|---|---|
| $1 – $1,000 | 2.00% |
| $1,001 – $2,000 | $20 + 3.00% of excess over $1,000 |
| $2,001 – $3,000 | $50 + 4.00% of excess over $2,000 |
| $3,001 – $150,000 | $90 + 4.75% of excess over $3,000 |
| $150,001 – $175,000 | $7,072.50 + 5.00% of excess over $150,000 |
| $175,001 – $225,000 | $8,322.50 + 5.25% of excess over $175,000 |
| $225,001 – $300,000 | $10,947.50 + 5.50% of excess over $225,000 |
| $300,001 – $600,000 | $15,072.50 + 5.75% of excess over $300,000 |
| $600,001 – $1,200,000 | $32,322.50 + 6.25% of excess over $600,000 |
| $1,200,001 and over | $69,822.50 + 6.50% of excess over $1,200,000 |
Important: These are marginal rates. Use the official Maryland Tax Computation Worksheet (Schedules I and II) if your taxable income exceeds $100,000. For incomes under $100,000, use the tax tables in the Maryland income tax booklet.
How Maryland’s Progressive Tax System Works?
Maryland taxes only the portion of income in each bracket. For example, a single filer with $110,000 taxable income pays:
- 2% on the first $1,000
- 3% on the next $1,000
- 4% on the next $1,000
- 4.75% on the next $97,000
- 5% on the remaining $10,000
This structure keeps lower earners in lower brackets while higher earners face the top marginal rate of 6.50%. Maryland’s top rate now applies only to very high earners after the 2025 legislative update.
Maryland Local (County) Income Tax Rates
Every Maryland resident also pays a local income tax based on county of residence (not work location). Local tax is a flat or graduated percentage of the same Maryland taxable income used for state tax. Rates range from 2.25% to 3.30% as of 2026.
Here are the 2026 local rates (effective for payments after January 1, 2026):
- Flat-rate counties (most common): Allegany (3.20%), Baltimore County (3.20%), Baltimore City (3.20%), Calvert (3.20%), Caroline (3.20%), Cecil (2.74%), Charles (3.03%), Dorchester (3.30%), Garrett (2.65%), Harford (3.06%), Howard (3.20%), Kent (3.30%), Montgomery (3.20%), Prince George’s (3.20%), Queen Anne’s (3.20%), St. Mary’s (3.20%), Somerset (3.20%), Talbot (2.40%), Washington (2.95%), Wicomico (3.20%), Worcester (2.25%).
- Graduated local rates:
- Anne Arundel: 2.70%–3.20% (brackets differ by filing status)
- Frederick: 2.25%–3.20% (brackets differ by filing status)
- Unknown Maryland county or default: 3.30%
- Nonresidents: Special nonresident rate of 2.25% (no local tax) or 7.0% in some withholding cases.
Local tax appears on Line 28 of Form 502. Check your county’s exact rate or use Maryland iFile for automatic calculation.
Recent Changes to Maryland Tax Brackets and Deductions (2025+)
- New top brackets — 6.25% and 6.50% added for high earners (effective tax year 2025).
- Standard deduction — Now a flat amount: $3,350 (Single/MFS/Dependent) or $6,700 (Joint/HOH/Qualifying Surviving Spouse) for tax year 2025. Future years are indexed for inflation.
- Itemized deduction phase-out — Starts at federal AGI over $200,000 ($100,000 if MFS) — 7.5% reduction on excess AGI.
- Local tax cap — Counties may now impose up to 3.30%.
These changes affect withholding and final 2025 returns due April 15, 2026.
How to Calculate Your Maryland Income Tax?
- Start with federal AGI.
- Make Maryland additions and subtractions to get Maryland adjusted gross income.
- Subtract standard or itemized deductions (with phase-out if applicable) and exemptions.
- Apply the state tax brackets above.
- Add your local county tax rate.
- Subtract credits (e.g., child care, earned income).
Use the free Maryland iFile system or tax software for accurate computation.
Filing Requirements and Deadlines in Maryland
- Who must file? Residents with Maryland taxable income over certain thresholds; nonresidents with Maryland-source income.
- Deadline: April 15, 2026 for 2025 returns (or next business day).
- Forms: Form 502 (resident), 505 (nonresident), 505NR for part-year.
- Electronic filing: Strongly recommended via iFile or approved software.
Estimated payments are required if you expect to owe $1,000+ after withholding.
Tips to Lower Your Maryland Tax Bill
- Maximize the new higher standard deduction.
- Contribute to Maryland 529 plans or eligible retirement accounts (subtractions available).
- Claim available credits: Earned Income Tax Credit, child/dependent care, property tax credits.
- Consider timing income or deductions if near bracket thresholds.
- Use employer withholding tools (Form MW507) to avoid underpayment penalties.
Always consult a tax professional or the Maryland Comptroller’s office for personalized advice.
Frequently Asked Questions About Maryland Tax Brackets
Does Maryland tax Social Security? No — Maryland fully exempts Social Security and certain retirement income.
How do I find my county tax rate? Use the table above or the Maryland Comptroller’s local tax rate page.
Are there city taxes in Maryland? No — only state + county (Baltimore City counts as a county).
What if I work in Maryland but live elsewhere? Nonresidents pay Maryland tax only on Maryland-source income and may claim credit on their home state return.
Resources and Next Steps
- Official Maryland tax brackets and forms: marylandtaxes.gov
- iFile online filing: Free for most taxpayers
- Tax Computation Worksheet: Available in the annual instruction booklet
- Local rates and withholding: Maryland Comptroller withholding memos
Understanding Maryland tax brackets empowers you to plan effectively. Tax laws can change, so verify the latest details on the official Maryland Comptroller website or with a qualified tax advisor before filing. Stay informed and file accurately to make the most of Maryland’s tax system.