Maryland Paycheck Calculator 2026

Maryland Income Tax Overview 2026

Maryland's income tax rate is 2% to 5.75% (top rate: 5.75%). Maryland has a graduated income tax with rates from 2% to 5.75%, plus every county levies its own income tax ranging from 2.25% to 3.2%. This means Maryland residents effectively pay 4.25% to 8.95% in combined state and local income tax, making the total burden among the highest in the nation.

Maryland Tax Quick Facts

• State Income Tax: 2% to 5.75%
• State Sales Tax: 6%
• Local Taxes: County income taxes of 2.25-3.2% are mandatory (Montgomery: 3.2%, Baltimore City: 3.2%).
• Median Household Income: $90,203

How Your Maryland Paycheck Is Calculated

Your take-home pay in Maryland is calculated by subtracting the following from your gross pay:

• Federal Income Tax: Based on 2026 brackets (10% to 37%), after the standard deduction ($15,000 single / $30,000 married).
• Social Security Tax: 6.2% on the first $176,100 of earnings.
• Medicare Tax: 1.45% on all earnings, plus 0.9% on income above $200,000.
• Maryland State Tax: 2% to 5.75% on your taxable income.

Tips to Maximize Your Maryland Take-Home Pay

Consider maximizing pre-tax deductions like 401(k) contributions (up to $23,500 in 2026) and HSA contributions ($4,300 individual / $8,550 family). These reduce your taxable income, lowering both federal and state taxes. If you receive a large bonus, be aware it may be withheld at a flat 22% federal rate plus applicable state taxes.