Anne Arundel County Local Income Tax Guide (2026)

Most Maryland counties levy a single flat local "piggyback" tax on taxable income. However, Anne Arundel County is one of the few jurisdictions in Maryland that has implemented a progressive, multi-tier graduated tax structure.

If you reside in Annapolis, Glen Burnie, Pasadena, Severna Park, or anywhere else in Anne Arundel County, your local income tax rate depends on how much you earn. This guide breaks down the 2026 Anne Arundel County brackets, how the progressive math works, and what it means for your paycheck.

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Direct Answer: What Is the Anne Arundel County Tax Rate?

For the 2026 tax year, the Anne Arundel County local income tax rate ranges from 2.70% to 3.20%.

Rather than taxing all your income at one flat rate, the county applies progressive tax brackets to your Maryland taxable income (gross income minus pre-tax deductions, standard deductions, and personal exemptions).

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The 2026 Anne Arundel County Graduated Tax Brackets

The local tax brackets are determined by your filing status:

1. Single Filers & Married Filing Separately

• $0 to $50,000 of Maryland taxable income is taxed at 2.70%
• $50,001 to $400,000 of Maryland taxable income is taxed at 2.94%
• Over $400,000 of Maryland taxable income is taxed at 3.20%

2. Married Filing Jointly & Head of Household

• $0 to $75,000 of Maryland taxable income is taxed at 2.70%
• $75,001 to $480,000 of Maryland taxable income is taxed at 2.94%
• Over $480,000 of Maryland taxable income is taxed at 3.20%

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How the Graduated Local Tax is Calculated (Example)

To see how the brackets function, let’s run a calculation for a single taxpayer living in Glen Burnie with a Maryland taxable income of $75,000:

1. First Tier: The first $50,000 of taxable income is taxed at 2.70%. $$50,000 \times 2.70% = $1,350$$
2. Second Tier: The remaining $25,000 (from $50,001 to $75,000) is taxed at 2.94%. $$25,000 \times 2.94% = $735$$
3. Total County Tax: $$$1,350 + $735 = $2,085$$

The taxpayer pays a total of $2,085 in county taxes, which equates to an effective local tax rate of approximately 2.78%.

This progressive bracket structure is built directly into our Maryland Salary Calculator and will automatically adjust based on your income inputs.

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Common Misconceptions About Local Graduated Taxes

• "My whole salary is taxed at the higher rate." A common point of confusion is that entering a higher tier taxes your entire income at that level. Only the income within each specific bracket is taxed at the corresponding rate.
• "The rate is based on where I work." In Maryland, your local income tax is determined entirely by your county of residence as of December 31st of the tax year. If you commute to an office in Baltimore City (3.30% local tax) but reside in Anne Arundel County, your payroll deductions will use the Anne Arundel graduated rates.

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Frequently Asked Questions (FAQs)

Does Annapolis have a separate city income tax?

No. The City of Annapolis does not levy its own municipal income tax. Residents of the city pay the standard Anne Arundel County graduated income tax rates.

What is the nonresident rate in Anne Arundel County?

If you work in Anne Arundel County but reside outside Maryland, you do not pay the graduated county tax rates. Non-residents who earn income in Maryland are subject to a flat 2.25% nonresident local tax rate collected by the state.

How do I report Anne Arundel county taxes on my returns?

When completing Maryland Form 502, the county tax is calculated automatically on Form 502, Page 2 based on the county code you enter on Page 1.