October 20, 2026
- Updated for tax year 2026: full 10-bracket rate schedules for both filing groups
- Added all 23 county and Baltimore City local rates for 2026 from the Comptroller
- Added the 2026 personal exemption phaseout table and the standard deduction status
- Added worked examples for a single filer and a joint filer
- Kept the 2025 figures in a previous-year section
Maryland taxes 2026 income at rates from 2% to 6.5% across 10 brackets, and every county and Baltimore City adds its own local income tax of 2.25% to 3.30% on top. The state brackets are the same ones that took effect for 2025 under the Budget Reconciliation and Financing Act of 2025, so most households will see little change in their state rate. The figures below come from the Comptroller of Maryland’s 2026 estimated tax worksheet and its 2026 withholding tables.
If you are new to Maryland on a work visa or a green card, the rules are the same as for any resident: Maryland taxes residents on worldwide income, and the county you live in on December 31 sets your local rate.
Maryland income tax brackets for 2026
Maryland’s tax is marginal: each slice of taxable net income is taxed at its own rate, so moving into a higher bracket only raises the tax on the income above that line. There are two schedules, one for single filers and one for joint filers.
Single, married filing separately and dependent filers
| Taxable net income | Rate | Maryland tax |
|---|---|---|
| $1 to $1,000 | 2.00% | 2% of taxable income |
| $1,001 to $2,000 | 3.00% | $20 plus 3% over $1,000 |
| $2,001 to $3,000 | 4.00% | $50 plus 4% over $2,000 |
| $3,001 to $100,000 | 4.75% | $90 plus 4.75% over $3,000 |
| $100,001 to $125,000 | 5.00% | $4,697.50 plus 5% over $100,000 |
| $125,001 to $150,000 | 5.25% | $5,947.50 plus 5.25% over $125,000 |
| $150,001 to $250,000 | 5.50% | $7,260 plus 5.5% over $150,000 |
| $250,001 to $500,000 | 5.75% | $12,760 plus 5.75% over $250,000 |
| $500,001 to $1,000,000 | 6.25% | $27,135 plus 6.25% over $500,000 |
| Over $1,000,000 | 6.50% | $58,385 plus 6.5% over $1,000,000 |
Married filing jointly, head of household and qualifying surviving spouse
| Taxable net income | Rate | Maryland tax |
|---|---|---|
| $1 to $1,000 | 2.00% | 2% of taxable income |
| $1,001 to $2,000 | 3.00% | $20 plus 3% over $1,000 |
| $2,001 to $3,000 | 4.00% | $50 plus 4% over $2,000 |
| $3,001 to $150,000 | 4.75% | $90 plus 4.75% over $3,000 |
| $150,001 to $175,000 | 5.00% | $7,072.50 plus 5% over $150,000 |
| $175,001 to $225,000 | 5.25% | $8,322.50 plus 5.25% over $175,000 |
| $225,001 to $300,000 | 5.50% | $10,947.50 plus 5.5% over $225,000 |
| $300,001 to $600,000 | 5.75% | $15,072.50 plus 5.75% over $300,000 |
| $600,001 to $1,200,000 | 6.25% | $32,322.50 plus 6.25% over $600,000 |
| Over $1,200,000 | 6.50% | $69,822.50 plus 6.5% over $1,200,000 |
The two top brackets, 6.25% and 6.5%, were added for 2025 and continue in 2026. Before 2025 the top rate was 5.75%. Fiduciaries (estates and trusts) use the single-filer schedule.
County and Baltimore City income tax rates for 2026
Local income tax is a percentage of the same Maryland taxable net income, added to the state tax. Counties may now set rates up to 3.30%, and two of them have moved to tiered rates.
| Jurisdiction | 2026 local rate |
|---|---|
| Allegany County | 3.20% |
| Anne Arundel County | 2.70% / 2.94% / 3.20% (tiered, see below) |
| Baltimore City | 3.20% |
| Baltimore County | 3.20% |
| Calvert County | 3.20% |
| Caroline County | 3.20% |
| Carroll County | 3.03% |
| Cecil County | 2.74% |
| Charles County | 3.03% |
| Dorchester County | 3.30% |
| Frederick County | 2.25% / 2.75% / 2.96% / 3.20% (tiered, see below) |
| Garrett County | 2.65% |
| Harford County | 3.06% |
| Howard County | 3.20% |
| Kent County | 3.30% |
| Montgomery County | 3.20% |
| Prince George’s County | 3.20% |
| Queen Anne’s County | 3.20% |
| St. Mary’s County | 3.20% |
| Somerset County | 3.20% |
| Talbot County | 2.40% |
| Washington County | 2.95% |
| Wicomico County | 3.20% |
| Worcester County | 2.25% |
| Nonresidents (special nonresident tax) | 2.25% |
Anne Arundel County charges 2.70% on the first $50,000 of taxable net income ($75,000 for joint filers), 2.94% up to $400,000 ($480,000 joint), and 3.20% above that.
Frederick County charges 2.25% up to $25,000, then 2.75% up to $50,000 ($100,000 joint), 2.96% up to $150,000 ($250,000 joint), and 3.20% above that.
Employers withhold at 3.30% for local tax when an employee has not given a Maryland county on Form MW507, so check your pay stub if you recently moved.
2026 tax for two example households
These examples use the 2026 schedules above and assume the income shown is already Maryland taxable net income (after deductions and exemptions).
Single filer in Montgomery County, $85,000 taxable income. State tax is $90 plus 4.75% of the $82,000 above $3,000, which is $3,985. Montgomery County adds 3.20%, or $2,720. Total: $6,705.
Married couple filing jointly in Anne Arundel County, $180,000 taxable income. State tax is $8,322.50 plus 5.25% of the $5,000 above $175,000, which is $8,585. Anne Arundel’s tiered local tax is 2.70% of the first $75,000 ($2,025) plus 2.94% of the next $105,000 ($3,087), or $5,112. Total: $13,697.
Standard deduction and personal exemptions
Maryland’s standard deduction is now a flat amount: $3,350 for single, dependent and married-filing-separately filers and $6,700 for joint, head-of-household and qualifying-surviving-spouse filers. Those are the amounts in the Comptroller’s 2026 estimated tax worksheet. The law indexes the deduction for inflation each year after 2025, and the Comptroller’s 2026 withholding tables already use $3,400, so the final 2026 amount on the return may be slightly higher. It will be confirmed when the 2026 forms are released.
If you itemize instead, your federal itemized deductions (minus state and local income taxes) are reduced by 7.5% of federal AGI above $200,000 ($100,000 if married filing separately).
Each personal exemption is worth $3,200, plus an extra $1,000 for a taxpayer or spouse who is 65 or older or blind. The $3,200 exemptions shrink as federal AGI rises:
| Federal AGI | Single or married filing separately (each) | Joint, head of household or surviving spouse (each) |
|---|---|---|
| $100,000 or less | $3,200 | $3,200 |
| $100,001 to $125,000 | $1,600 | $3,200 |
| $125,001 to $150,000 | $800 | $3,200 |
| $150,001 to $175,000 | $0 | $1,600 |
| $175,001 to $200,000 | $0 | $800 |
| Over $200,000 | $0 | $0 |
The 2% capital gains surtax
If your federal AGI is more than $350,000, Maryland adds a 2% tax on net capital gain included in your Maryland income. It sits on top of the regular state and local tax. Gains from some assets are excluded, including the sale of a primary residence for up to $1.5 million and gains inside retirement accounts. The Comptroller’s Technical Bulletin No. 58 lists what is covered.
For example, a joint filer with $400,000 of AGI that includes $50,000 of net capital gain would owe an extra $1,000 (2% of $50,000). For H-1B workers and other professionals paid partly in stock, the year you sell RSUs or shares can change your Maryland bill.
What changed from 2025
For most people, nothing in the rate tables. The 10 brackets, the 6.25% and 6.5% top rates, the $350,000 surtax threshold and the 7.5% itemized deduction phaseout are the same in 2026 as in 2025. What can change your 2026 bill:
- Your county rate. Dorchester and Kent are at the 3.30% cap for 2026, and Anne Arundel and Frederick use tiered rates.
- The standard deduction. It is indexed for inflation after 2025 (see above).
- Sales and excise taxes that started July 1, 2025 and continue: a 3% sales tax on IT and digital services, a 6.5% vehicle excise tax, and higher cannabis (12%), sports betting (20%) and rental car (3.5%) taxes.
2025 Maryland tax rates (previous year)
Tax year 2025 used the same 10 brackets shown above, a $3,350 / $6,700 standard deduction, the same $3,200 personal exemption and the same 2% capital gains surtax over $350,000 of AGI. 2025 returns were due April 15, 2026, and the extended deadline was October 15, 2026. If you are filing a late or amended 2025 return, use the 2025 forms and the local rate that applied to your county for 2025.
Nonresidents and people who moved during the year
If you live outside Maryland but earn wages here, you pay the state rates plus a 2.25% special nonresident tax in place of a county tax. Many employers withhold 7% for nonresidents. If you moved into or out of Maryland in 2026, you file as a part-year resident and pay Maryland tax on the income you earned while living here. Residents of nearby states with reciprocity agreements (Pennsylvania, Virginia, West Virginia and the District of Columbia) generally pay tax on wages to their home state instead.
Frequently Asked Questions
What is the Maryland state income tax rate for 2026?
Maryland’s 2026 rates run from 2% to 6.5% across 10 brackets. Most middle-income households pay 4.75% on income from $3,001 up to $100,000 (single) or $150,000 (joint). The 6.5% top rate starts above $1,000,000 for single filers and $1,200,000 for joint filers.
Did Maryland tax brackets change for 2026?
No. The 2026 brackets are the same as 2025, when Maryland added the 6.25% and 6.5% top brackets. Some county rates and the inflation-indexed standard deduction can differ.
What is the highest combined Maryland state and local tax rate?
6.5% state plus a 3.30% local rate (Dorchester or Kent County) gives a combined top marginal rate of 9.8%. In a 3.20% county, such as Montgomery or Baltimore City, the combined top rate is 9.7%.
Which Maryland county has the lowest income tax?
Worcester County, at 2.25% for 2026. Talbot (2.40%) and Garrett (2.65%) are the next lowest.
Do nonresidents who work in Maryland pay county tax?
No. They pay the state rates plus a 2.25% special nonresident tax instead of a county tax, unless they live in a state with a reciprocity agreement.
Maryland taxes 2026 income at 2% to 6.5% across 10 brackets, the same brackets used for 2025. Counties and Baltimore City add a local tax of 2.25% to 3.30%, so most residents pay a combined top rate between 8.75% and 9.8%. High earners with federal AGI over $350,000 also owe a 2% surtax on net capital gains, and personal exemptions phase out above $100,000 of AGI.
