Maryland Income Tax 2026: The Complete Take-Home Guide

Most Maryland workers know they pay state income tax. What catches people off guard is the second line — the one that says "MD county tax" or simply rolls into a combined Maryland withholding figure that feels larger than expected. If you have ever stared at your pay stub wondering why your Maryland deduction is so much higher than what you calculated, the answer is almost always the county piggyback tax.

Maryland is one of a small number of states where every single jurisdiction — all 23 counties plus Baltimore City — levies a local income tax on top of the state rate. There is no opt-out, no county with a zero rate, and no way to avoid it as a Maryland resident. Understanding both layers is the only way to accurately predict what you will actually take home.

This confusion is widespread. Maryland workers in r/MontgomeryCountyMD have noted that national tools like SmartAsset routinely understate their withholding, and a May 2026 r/maryland discussion about net $100K salaries noted that the comparison chart used excluded local tax entirely — making Maryland's burden look lower than it is.

The Two Layers of Maryland Income Tax

Maryland state income tax uses a progressive bracket structure. Income is taxed in tiers, not all at the same rate. For a single filer in 2026 (source: Maryland Comptroller, Tax Year 2026 rate schedule):

• $0–$1,000 at 2%
• $1,001–$2,000 at 3%
• $2,001–$3,000 at 4%
• $3,001–$100,000 at 4.75%
• $100,001–$125,000 at 5%
• $125,001–$150,000 at 5.25%
• $150,001–$250,000 at 5.5%
• $250,001–$500,000 at 5.75%
• $500,001–$1,000,000 at 6.25%
• Over $1,000,000 at 6.5%

For married couples filing jointly, all thresholds roughly double. The important thing to understand is that only the income within each bracket is taxed at that rate — your entire salary is not taxed at your top rate.

The county piggyback tax is a separate, flat percentage applied to your Maryland taxable income. The rate depends entirely on where you live, not where you work. It runs from 2.25% in Somerset and Worcester counties to 3.3% in Baltimore City, Dorchester, Kent, and Montgomery counties. All 24 county rates are published in the Maryland Comptroller's annual withholding guide.

What "Maryland Taxable Income" Actually Means

Both the state tax and the county tax are calculated on Maryland taxable income — not your gross salary. Maryland allows a standard deduction of $3,350 for single filers and $6,700 for married couples filing jointly for the 2026 tax year. (The proposed 2026 bill, HB 411, to increase them to $4,100/$8,200 failed to pass, meaning the standard deduction remains at $3,350/$6,700). Pre-tax deductions like 401(k) contributions and HSA deposits reduce this base even further.

So if you earn $85,000 and contribute $5,000 to a 401(k), your Maryland taxable income is $85,000 − $3,350 − $5,000 = $76,650. Both state and county tax apply to that $76,650 figure, not the original $85,000.

The 2026 Top Brackets: 6.25% and 6.5%

Maryland added two new top brackets in recent years that affect high earners. Income between $500,000 and $1,000,000 is now taxed at 6.25%; income above $1,000,000 is taxed at 6.5%. These rates apply only to the portion of income that clears those thresholds. For the vast majority of Maryland workers earning below $250,000, the top bracket they reach is 5.75% on a single return.

Highest and Lowest County Rates

The spread between Maryland's lowest and highest county rates is 1.05 percentage points — which sounds small until you do the math on a $100,000 salary.

• Lowest: Somerset and Worcester counties at 2.25%
• Next lowest: Talbot (2.40%), Frederick (2.60%), Garrett (2.65%)
• Highest: Baltimore City, Dorchester, Kent, and Montgomery at 3.30%

On $76,650 of taxable income, Worcester County collects $1,725 in local tax. Montgomery County collects $2,529 — a difference of $804 per year on the same salary. At higher incomes, that gap widens further. See all 24 rates in Maryland county tax rates, ranked.

ProTip: If you are relocating within Maryland and your salary stays the same, your county of residence alone can shift your annual tax bill by more than $1,000. Worcester County at 2.25% versus Montgomery County at 3.3% means a worker earning $100,000 in taxable income pays over $1,050 more per year just from the county difference — without any change in their state, federal, or FICA taxes.

A Worked Example: $85,000 in Montgomery County

Here is exactly how withholding breaks down for a single filer earning $85,000 per year, paid bi-weekly, in Montgomery County, with no pre-tax deductions:

Maryland taxable income: $85,000 − $3,350 (MD standard deduction) = $81,650

Maryland state tax (progressive, single brackets):

• $0–$1,000 at 2% = $20.00
• $1,000–$2,000 at 3% = $30.00
• $2,000–$3,000 at 4% = $40.00
• $3,000–$81,650 at 4.75% = $3,735.88
• Total state tax: $3,825.88

Montgomery County tax: $81,650 × 3.3% = $2,694.45

Federal income tax (single, IRS Rev. Proc. 2025-32 2026 brackets, after $16,100 standard deduction):

• Federal taxable income: $85,000 − $16,100 = $68,900
• $0–$12,400 at 10% = $1,240.00
• $12,400–$50,400 at 12% = $4,560.00
• $50,400–$68,900 at 22% = $4,070.00
• Total federal tax: $9,870.00

Social Security: $85,000 × 6.2% = $5,270.00 Medicare: $85,000 × 1.45% = $1,232.50

Total tax: $22,892.83 Annual net pay: $85,000 − $22,892.83 = $62,107.17 Per paycheck (bi-weekly, ÷26): $2,388.74

To see exactly what your county takes out of your specific salary — including how pre-tax deductions lower each line — run your own numbers here or view the full $85,000 after-tax breakdown for every county. For the wider picture, see how much is taken out of a Maryland paycheck and take-home pay by salary.

Federal and FICA Withholding on Top

On top of Maryland's two layers, federal income tax applies using the 2026 IRS bracket structure (10% to 37%). Social Security is withheld at 6.2% on the first $168,600 of wages, and Medicare at 1.45% on all wages. High earners above $200,000 pay an additional 0.9% Medicare surtax on the amount that exceeds that threshold.

These four categories — federal, MD state, county, and FICA — together explain the full gap between gross salary and net pay for a Maryland worker.

What This Means for Your Pay Stub

When your employer processes Maryland payroll, they calculate state and county withholding together using the Maryland Comptroller's withholding tables. The tables bake in both the state rate and your county's piggyback rate. Some employers show "MD State Tax" and "MD County Tax" as separate line items; others show a single combined "Maryland Income Tax." Either way, both components are withheld in every paycheck.

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This article is for informational purposes only and does not constitute tax advice. Tax laws change; verify current rates with the Maryland Comptroller or a qualified tax professional before making financial decisions.