Maryland income tax goes up to 5.75% at the top bracket. Calculate your combined federal + state effective tax rate for 2026. Formula shown, sources cited — no account required.
The state's income tax is a two-layer structure: a state rate that tops out at 5.75% on a graduated scale, plus a county or city rate that most residents pay on top. Combined rates for the majority of residents run between 7.0% and 9.0% depending on county, making this one of the higher combined state-and-local income tax environments in the country. For the median earner at $102,905, state tax alone can run $4,600 to $5,300, with county tax adding another $2,300 to $3,300. Federal taxes stack on top, and the combined effective rate for a middle-income household here can easily exceed 30% when federal, state, and local obligations are tallied. The state does not tax Social Security for most residents and offers a partial pension exclusion that reduces taxable retirement income. Military pensions are fully excluded. The state also allows itemized deductions including mortgage interest, which can meaningfully reduce taxable income for homeowners paying off a substantial mortgage. High earners in government contracting, healthcare, and professional services face the steepest combined burdens. Use the tax bracket calculator to see your combined federal, state, and estimated county tax at your actual income level.
Maryland Tax Brackets Explained (2026)
Maryland has a state income tax with a top marginal rate of 5.75%. On top of federal rates (10%–37%), residents can face a combined marginal rate exceeding 35% at higher income levels. However, your effective rate is always lower than the marginal rate because only income above each threshold is taxed at that bracket's rate.
The median household in Maryland earns $102,905/year. At that income (single filer), the federal effective rate is approximately 12–14%, bringing total income tax (federal + state) to roughly 15–18%.
How Marginal vs. Effective Rate Works
The marginal rate is the rate on your last dollar of income — it does not apply to all income. The effective rate is your total tax divided by total income. For example, someone earning $100,000 in Maryland has a 22% federal marginal rate but an effective federal rate of roughly 15%, because the first $44,725 (2024) is taxed at 10% and 12%, not 22%.