Frederick County Local Income Tax Guide (2026)

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

If you reside in the City of Frederick, Urbana, Brunswick, Mount Airy, or anywhere else in Frederick County, your local income tax rate depends on how much you earn. This guide breaks down the 2026 Frederick County brackets, how the progressive calculations work, and what it means for your paycheck.

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Direct Answer: What Is the Frederick County Tax Rate?

For the 2026 tax year, the Frederick County local income tax rate ranges from 2.25% 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 Frederick County Graduated Tax Brackets

The local tax brackets are determined by your filing status:

1. Single Filers & Married Filing Separately

• $0 to $25,000 of Maryland taxable income is taxed at 2.25%
• $25,001 to $50,000 of Maryland taxable income is taxed at 2.75%
• $50,001 to $150,000 of Maryland taxable income is taxed at 2.96%
• Over $150,000 of Maryland taxable income is taxed at 3.20%

2. Married Filing Jointly & Head of Household

• $0 to $25,000 of Maryland taxable income is taxed at 2.25%
• $25,001 to $100,000 of Maryland taxable income is taxed at 2.75%
• $100,001 to $200,000 of Maryland taxable income is taxed at 2.96%
• Over $200,000 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 Urbana with a Maryland taxable income of $65,000:

1. First Tier: The first $25,000 of taxable income is taxed at 2.25%. $$25,000 \times 2.25% = $562.50$$
2. Second Tier: The next $25,000 (from $25,001 to $50,000) is taxed at 2.75%. $$25,000 \times 2.75% = $687.50$$
3. Third Tier: The remaining $15,000 (from $50,001 to $65,000) is taxed at 2.96%. $$15,000 \times 2.96% = $444.00$$
4. Total County Tax: $$$562.50 + $687.50 + $444.00 = $1,694.00$$

The taxpayer pays a total of $1,694.00 in county taxes, which equates to an effective local tax rate of approximately 2.61%.

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Common Misconceptions About Local Graduated Taxes

• "The rate is based on where my office is." 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 Montgomery County (3.30% local tax) but reside in Frederick County, your payroll deductions will use the Frederick County graduated rates.
• "All my income is taxed at the highest bracket rate." Tax brackets are progressive. You only pay the higher rates on the portion of your income that falls within that specific bracket.

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Frequently Asked Questions (FAQs)

Does Frederick City have a separate income tax?

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

What is the nonresident rate in Frederick County?

If you work in Frederick 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.