Maryland · the numbers
Maryland figures at a glance, 2026
The Maryland numbers for the 2026 return in one place: the ten state brackets, the county rates, the standard deduction and exemptions, the retirement figures, the credits, the dates, the estate and inheritance tax lines, and a short list of what changed from 2025. For anyone who files here, and for anyone checking a preparer’s work.
By Charles Trautman, EA, editor
Need to Know Tax · written from Comptroller of Maryland sources, November 3, 2026; updated November 12, 2026 after the election · not yet reviewed by a Maryland practitioner
Maryland has a long list of figures because it runs two income taxes on one return. The state tax has ten brackets, from 2% on the first $1,000 of taxable income to 6.5% above $1,000,000 single or $1,200,000 joint, with 4.75% covering everything from $3,000 up to $100,000 single / $150,000 joint. The county tax, on the same taxable income, runs from 2.25% in Worcester to 3.30% in Dorchester and Kent, and most of the populous counties charge 3.20%. For the typical household the combined marginal rate is about 7.95%, and that is the number to use when asking what anything costs in Maryland. Almost none of these figures are indexed, so most of them are the same as 2025. The exceptions are the standard deduction, indexed for the first time and not yet announced, and the pension exclusion cap, which fell.
The core figures
| Item | 2025 | 2026 |
|---|---|---|
| Starting point | Federal AGI | Federal AGI |
| State rate on taxable income $3,000 to $100,000 single / $150,000 joint | 4.75% | 4.75% |
| State top rate, over $1,000,000 single / $1,200,000 joint | 6.5% | 6.5% |
| County income tax, range | 2.25% to 3.30% | 2.25% to 3.30% |
| County income tax, statutory maximum | 3.20% | 3.30% |
| Special nonresident rate, in place of county tax | 2.25% | 2.25% |
| Capital gains surcharge, federal AGI over $350,000 | 2% | 2% |
| Standard deduction, single / MFS / dependent | $3,350 | to come; expected $3,400 (verify) |
| Standard deduction, joint / HOH / QSS | $6,700 | to come; expected $6,800 (verify) |
| Itemized deductions reduced by 7.5% of federal AGI over | $200,000 ($100,000 MFS) | $200,000 ($100,000 MFS) |
| Personal exemption, each person, federal AGI up to $100,000 / $150,000 | $3,200 | $3,200 |
| Additional exemption, 65 or older or blind | $1,000 | $1,000 |
| 529 subtraction, per contributor per beneficiary (Maryland College Investment Plan) | $2,500 | $2,500 |
| Two-income subtraction, joint return | $1,200 | $1,200 |
The standard deduction was a 15%-of-income phase-in through 2024; the 2025 budget law made it flat and indexed it from 2026. The Comptroller’s 2026 estimated-tax worksheet still prints $3,350 / $6,700, while its 2026 withholding guide uses $3,400 single. The 2026 Form 502 instructions will settle it.
The state brackets
| Rate | Single, MFS, dependent | Joint, HOH, QSS |
|---|---|---|
| 2.00% | $0 to $1,000 | $0 to $1,000 |
| 3.00% | $1,000 to $2,000 | $1,000 to $2,000 |
| 4.00% | $2,000 to $3,000 | $2,000 to $3,000 |
| 4.75% | $3,000 to $100,000 | $3,000 to $150,000 |
| 5.00% | $100,000 to $125,000 | $150,000 to $175,000 |
| 5.25% | $125,000 to $150,000 | $175,000 to $225,000 |
| 5.50% | $150,000 to $250,000 | $225,000 to $300,000 |
| 5.75% | $250,000 to $500,000 | $300,000 to $600,000 |
| 6.25% | $500,000 to $1,000,000 | $600,000 to $1,200,000 |
| 6.50% | over $1,000,000 | over $1,200,000 |
The tax on the first $3,000 is $90 for everyone, so for a single filer the state tax up to $100,000 is $90 plus 4.75% of the amount over $3,000. A single filer with $100,000 of taxable income owes $4,697.50 before credits; a joint filer with $150,000 owes $7,072.50.
The county rates
| Rate | Counties |
|---|---|
| 2.25% | Worcester |
| 2.40% | Talbot |
| 2.65% | Garrett |
| 2.74% | Cecil |
| 2.95% | Washington |
| 3.03% | Carroll, Charles |
| 3.06% | Harford |
| 3.20% | Allegany (up from 3.03%), Baltimore City, Baltimore County, Calvert, Caroline, Howard, Montgomery, Prince George’s, Queen Anne’s, St. Mary’s, Somerset, Wicomico |
| 3.30% | Dorchester, Kent (up from 3.20%) |
| Graduated | Anne Arundel: 2.70% to $50,000 single / $75,000 joint, 2.94% to $400,000 / $480,000, 3.20% above. Frederick: 2.25% to $25,000, 2.75% to $50,000 single / $100,000 joint, 2.96% to $150,000 / $250,000, 3.20% above. |
| 2.25% | Nonresidents, special nonresident rate on Form 505NR in place of county tax |
Source: the Comptroller’s 2026 state and local withholding memo and the December 2025 tax alert. Counties may add a local earned income credit against this tax (Form 502 Line 29); the percentages vary by county (verify by county).
Exemptions by income
| Federal AGI, single / MFS | Each exemption | Federal AGI, joint / HOH / QSS | Each exemption |
|---|---|---|---|
| $100,000 or less | $3,200 | $150,000 or less | $3,200 |
| $100,001 to $125,000 | $1,600 | $150,001 to $175,000 | $1,600 |
| $125,001 to $150,000 | $800 | $175,001 to $200,000 | $800 |
| Over $150,000 | $0 | Over $200,000 | $0 |
The $1,000 additional exemption for age 65 or blindness does not phase out. A dependent 65 or older counts for double the exemption amount.
Retirement figures
| Item | 2025 | 2026 |
|---|---|---|
| Social Security and Railroad Retirement, subtraction (Line 11) | 100% | 100% |
| Pension exclusion, maximum per person 65 or older or disabled, less Social Security received (Line 10a) | $41,200 | $40,600 |
| Traditional IRA, SEP, SIMPLE and Roth conversion income | Fully taxed | Fully taxed |
| Military retirement subtraction, under 55 / 55 and older (502SU code u) | $12,500 / $20,000 | $12,500 / $20,000 |
| Public safety retirement subtraction, 55 and older (502SU code v) | $15,000 | $16,000 |
| Retired 9-1-1 specialist credit, 55 and older (by certificate) | none | 4.75% of first $15,000, up to $700 |
| Senior tax credit, 65 and older, single, federal AGI up to $100,000 (502CR Part M) | $1,000 | $1,000 |
| Senior tax credit, joint / HOH / QSS, federal AGI up to $150,000 (both 65 / one 65) | $1,750 / $1,000 | $1,750 / $1,000 |
| Estate tax exclusion per decedent, portable | $5,000,000 | $5,000,000 |
| Inheritance tax on property to anyone other than exempt relatives | 10% | 10% |
The senior credit has an AGI cliff, not a phase-out: $100,001 of federal AGI on a single return loses the whole $1,000. The 2025 budget law lowered the revenue-shortfall trigger that would cut the credit to $500 / $875; the Comptroller has not invoked it for 2026 (verify).
Credits for families and workers
| Credit | Figure | Refundable? | Income limit |
|---|---|---|---|
| Earned income credit, with a qualifying child (Line 22 or Line 44) | 50% of the federal EITC nonrefundable, or 45% refundable; pick one | 45% version, yes | Federal EITC limits; ITIN filers qualify |
| Earned income credit, no qualifying child | 100% of the federal EITC | Yes | Federal EITC limits; no minimum age, so 18 to 24 and 65 and older qualify |
| Local earned income credit (Line 29) | Percentage of the federal credit set by each county | No; against county tax | Same |
| Poverty level credit (Line 23) | 5% of earned income | No | Income below the poverty guideline |
| Child tax credit (502CR Part CC) | $500 per child under 6, or under 17 with a disability; reduced $50 per $1,000 of federal AGI over $15,000 | Yes | Gone at $25,000 |
| Child and dependent care credit (502CR Part B) | 32% of the federal credit, phasing to zero | Below $59,400 / $89,100 joint (2024 figures) | Phase-out above $109,300 / $169,900 joint (2024 figures; 2026 to come) |
| Child and dependent care expenses, subtraction (Line 9) | The expenses themselves | n/a | None |
| Student Loan Debt Relief credit (502CR Part CC) | Up to $5,000 by MHEC certificate; $9 million pool for 2026 | Yes | $20,000 borrowed, $5,000 outstanding; apply by September 15 |
| Long-term care insurance credit (502CR Part E) | $500 per insured over 40, $470 at 40 or younger; one time | No | None |
| Credit for tax paid to other states (502CR Part A) | Lesser of the other state’s tax or Maryland tax on the same income | No | Residents only; not for wages from PA, VA, WV or DC |
Worked example: what the two taxes come to at $120,000
A married couple in Baltimore County, both under 65, no children, federal AGI of $120,000 from wages, standard deduction on both returns. Baltimore County rate 3.20%.
| Federal AGI (Form 502 Line 1) | $120,000 |
| Standard deduction (2025 figure; 2026 to come) | −$6,700 |
| Exemptions, 2 × $3,200 | −$6,400 |
| Maryland taxable income | $106,900 |
| State tax: $90 plus 4.75% of $103,900 | $5,025 |
| Baltimore County tax: 3.20% of $106,900 | $3,421 |
| Maryland and county tax | $8,446 |
| As a share of federal AGI | 7.0% |
The county tax is 40% of the bill. The same couple in Worcester County would pay $2,405 of local tax instead of $3,421, a $1,016 difference on the same income. If the indexed standard deduction comes in at $6,800, the total falls by about $8.
Dates
| Date | What |
|---|---|
| January 15, 2027 | Fourth 2026 estimated payment, Form PV |
| April 15, 2027 | Form 502 and payment due; extension request and payment; first 2027 estimated payment; Homeowners’ Property Tax Credit application to have the credit on the July bill |
| June 15, 2027 | Second 2027 estimated payment |
| September 15, 2027 | Third 2027 estimated payment; Student Loan Debt Relief credit application to MHEC |
| October 1, 2027 | Final deadline for the Homeowners’ and Renters’ Property Tax Credit applications (SDAT) |
| October 15, 2027 | Extended due date for Form 502 |
Estimated payments are required when Maryland tax after withholding is expected to exceed $500. Safe harbor: four equal payments totaling 110% of last year’s tax or 90% of this year’s, per Form 502UP. Details in Maryland calendar and forms.
Beyond the income tax
| Item | 2026 |
|---|---|
| Estate tax | $5,000,000 exclusion per decedent, not indexed; portability of a deceased spouse’s unused exclusion by filing Form MET-1; rates to 16%; inheritance tax paid is credited |
| Inheritance tax | 10% on property passing to anyone other than a spouse, descendant, parent, grandparent, sibling or their spouses; collected by the Register of Wills; no gift tax |
| Sales and use tax | 6% statewide, no local sales taxes; 9% on alcohol; 3% on data and IT services since July 1, 2025 |
| Homeowners’ Property Tax Credit (SDAT) | Household income $60,000 or less, net worth under $200,000 excluding the home and retirement accounts; relief on the first $300,000 of assessment |
| Renters’ Tax Credit (SDAT) | Up to $1,000 for renters 60 or older, disabled, or under 60 with a dependent child, income-tested |
| Homestead Tax Credit (SDAT) | Caps the taxable assessment increase on a principal residence at 10% a year, less in most counties; one-time application |
| Reciprocal states for wages | Pennsylvania, Virginia, West Virginia, District of Columbia |
| Nonresident sale of Maryland real estate | 8.75% of the gain withheld at closing, Form MW506NRS |
What changed from 2025
- Standard deduction indexed for the first time; 2026 figure to come, expected $3,400 / $6,800.
- Pension exclusion cap down from $41,200 to $40,600.
- County ceiling up from 3.20% to 3.30%; Kent to 3.30%, Allegany to 3.20%.
- Public safety retirement subtraction up from $15,000 to $16,000; new 9-1-1 specialist subtraction and credit.
- Student Loan Debt Relief credit pool cut from $18 million to $9 million for 2026.
- Teacher supplies subtraction extended to pre-K teachers.
- Bonus depreciation for manufacturers limited to 20%; §168(n) permanently decoupled; §174A and §163(j) conform for 2026.
- Maryland Tax Connect replaces iFile; IRS Direct File not available.
- Not changed: brackets, exemptions, the 2% surcharge and its $350,000 line, the EITC percentages, the $500 child credit, the $2,500 529 cap, the senior credit, the estate and inheritance tax.
Behind the scenes: why so little of this is indexed
Maryland’s brackets date in their lower reaches to the 1960s, and the $3,200 exemption and its $100,000 phase-out line have not moved in years. The legislature prefers to adjust figures by bill, which is why the 2025 budget law could add two brackets and a surcharge in one stroke while leaving the 4.75% band exactly where it was. The one indexed figure on the return before 2026 was the pension exclusion, tied by statute to the maximum Social Security benefit, which is why it can fall as well as rise. The standard deduction joins it this year. Everything else holds still until a bill moves it, and in 2026 no bill moved the big ones.
What to bring
- Last year’s Form 502, so this year’s figures can be compared line by line
- Your county of residence on December 31, 2026
- Dates of birth for everyone on the return; 65 adds $1,000 to the exemption and opens the senior credit
- SSA-1099 and every 1099-R, for the pension exclusion worksheet
- Federal Schedule A if you itemized, for the Maryland itemized comparison
- 529 contribution statements, by contributor and beneficiary
- Child care expenses and the provider’s information, for both the subtraction and the credit
- Estimated payment confirmations from Maryland Tax Connect, with dates
Questions people ask
What rate do most Maryland filers pay?
4.75% to the state on taxable income between $3,000 and $100,000 single or $150,000 joint, plus the county rate, which is 3.20% in most of the populous counties. Call it 7.95% combined for planning.
Is the standard deduction still $3,350 / $6,700?
Those are the 2025 figures. The law indexes the deduction from 2026 and the Comptroller has not published the 2026 amount; its withholding guide uses $3,400, so expect $3,400 / $6,800 (verify).
Which county rate do I use if I moved during the year?
The county you lived in on December 31. A move from Worcester to Montgomery in November puts the whole year’s taxable income at 3.20%; a move the other way puts it all at 2.25%.
Why did my pension exclusion go down?
The cap tracks the maximum Social Security benefit and fell from $41,200 to $40,600 for 2026. The exclusion is also reduced by every dollar of Social Security you receive, taxed or not.
Does Maryland tax Social Security?
No. Whatever was taxed federally comes off on Form 502 Line 11, at any age and income. IRA withdrawals, by contrast, are taxed in full.
What is the estate tax exemption?
$5,000,000 per person, not indexed, portable between spouses if Form MET-1 is filed for the first death. Separately, the 10% inheritance tax applies to property left to nieces, nephews, friends and unmarried partners; spouses, children, parents and siblings are exempt.
Two taxes, one return, about 7.95% combined
Know your county rate and where $100,000 and $150,000 of federal AGI fall for your household, and most of the Maryland arithmetic follows.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Forms and official pages named in this article
- Form 502, Maryland Resident Income Tax Return (2025)
- Form 502CR, Income Tax Credits for Individuals, with instructions (2024)
- Form 505, Maryland Nonresident Income Tax Return (2025)
- Form 502UP, Underpayment of Estimated Income Tax by Individuals (2025)
- Pension Exclusion Worksheet (13A)
- 2026 estimated tax worksheet: rate schedules, standard deduction, exemption phase-out, due dates
Sources and where to check
- Comptroller of Maryland, Tax Alert: Changes to standard and itemized deductions and to state and local income tax rates from the 2025 legislative session
- Comptroller of Maryland, Technical Bulletin 58: capital gain income
- Comptroller of Maryland, 2026 Maryland state and local withholding information (county rates)
- Comptroller of Maryland, 2026 Employer Withholding Guide
- Comptroller of Maryland, Earned It: EITC and child tax credit
- Maryland Department of Veterans and Military Families, retirement pay subtraction
- Fiscal and policy note, SB 284 of 2026