Maryland Tax Guide
5.75%top marginal rate
Maryland is the only state that levies both an estate tax and an inheritance tax. Its progressive income tax tops out at 5.75%, plus counties add their own piggyback income tax. This gives Maryland one of the higher overall tax burdens on the East Coast.
Maryland Tax at a Glance
Income Tax
5.75%
Top marginal rate
Sales Tax
6%
State-level rate
Property Tax
1.09%
Near the national average for property tax
Estate Tax
Yes
State-level estate/inheritance tax
How Maryland Compares to the National Average
Notable Tax Facts
- Only state in the US with both an estate tax AND an inheritance tax
- Counties levy their own piggyback income tax on top of the state rate (1.75% to 3.2%)
- Total state + local income tax rates can reach nearly 9%
- Estate tax exemption is $5 million — lower than federal
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Maryland Tax FAQ
What is Maryland's income tax rate?
Maryland has a progressive state income tax from 2% to 5.75%. Counties add a local income tax of 1.75% to 3.2%, bringing the total to as high as 8.95%.
Does Maryland have both estate and inheritance tax?
Yes. Maryland is the only state with both. The estate tax has a $5 million exemption. The inheritance tax of 10% applies to non-lineal heirs (siblings, etc.) — spouses and children are exempt.
How do Maryland's county taxes work?
Maryland counties levy their own piggyback income tax as a percentage of the state tax. Rates range from 1.75% (Worcester County) to 3.2% (some counties). This is in addition to the state rate.
Does Maryland tax retirement income?
Maryland offers a pension exclusion of up to $39,500 for taxpayers 65 and older. Social Security benefits are not taxed at the state level.
Compare With Other States
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Educational content, not tax advice. Tax rates are approximate and subject to change. Consult a qualified CPA or tax professional for advice specific to your situation. Data reflects widely-known public information as of early 2026.