Free Tool
Maryland Tax Refund Calculator
Use this free calculator to estimate your Maryland state tax refund for the 2025-2026 tax year. Maryland uses a progressive income tax system with rates from 2-5.75%. Enter your income, filing status, and deductions below to see your estimated refund or balance due.
This calculator uses official Maryland Department of Revenue tax tables and standard deduction amounts for the 2026 tax year. Results are estimates and should be verified with a tax professional.
Maryland State Tax Calculator 2025-2026
Maryland Tax System Details
Maryland operates a progressive income tax system with 8 tax brackets. Tax rates range from 2-5.75%, applying to all taxable income earned by Maryland residents. The state standard deduction for 2026 is $2,550 for single filers and $5,100 for married filing jointly.
How Maryland Compares to Other States
Maryland's combined state and local tax rates can reach nearly 10% in some counties, placing it among the higher-tax states on the East Coast. Washington DC reaches 10.75%, Virginia's top rate is 5.75% (no local income tax), Pennsylvania has a flat 3.07%, and Delaware has rates up to 6.6% but no sales tax. Moving from Garrett County (2.25% local) to Prince George's County (3.2% local) can mean hundreds in extra taxes.
A single filer earning $80,000 in Montgomery County would pay about $4,740 in combined state and local income tax — an effective rate of approximately 5.9%.
Deductions and Credits Available in Maryland
Maryland offers a property tax credit for homeowners and a renters' tax credit. Seniors 65+ can exclude up to $40,000 of qualified retirement income. Social Security benefits are exempt. A student loan payment credit of up to $5,000 is available for graduates living in designated areas.
For federal tax purposes, Maryland residents are heavily impacted by the SALT deduction cap of $40,000.
Sales Tax in Maryland
Maryland's state sales tax rate is 6% on most goods. Groceries and prescription drugs are exempt. The rate is uniform statewide. Property taxes average about 1.06% of home value.
Maryland Income Tax Overview
Maryland uses 2-5.75% progressive (8 brackets + county) system. This means the tax rate increases as your income rises, with different portions of your income taxed at different rates. The standard deduction is subtracted from your gross income to determine your taxable income before the brackets are applied. Practical tip: the effective rate you actually pay is usually far lower than the top marginal rate. For typical middle-income earners, the effective state tax rate lands well below the headline rate.
The standard deduction directly reduces your taxable income before any tax brackets are applied. The state sales tax rate is 6%, which applies to most goods and some services depending on local laws. Property taxes in Maryland average approximately 1.05% of home value. For context, the national average property tax rate is roughly 1.1%. Residents should check their city and county rates, as local add-ons can significantly increase the combined sales tax rate above the state base rate.
Compared to neighboring states — Delaware (2.2-6.6%), Pennsylvania (3.07%), Virginia (5.75%), West Virginia (6.5%) — Maryland offers a distinct balance of rates, deductions, and available credits that can significantly impact your total tax burden. For retirement income: SS exempt, up to $34,000 pension exclusion 65+. Maryland counties impose an additional local income tax. Maryland offers various state-specific deductions and credits that can reduce tax liability. The annual filing deadline for state income tax returns is April 15, matching the federal deadline. Taxpayers who cannot file by the deadline can request an automatic six-month extension, though any tax owed must still be paid by April 15 to avoid interest and penalty charges. Self-employed individuals, recent movers, and retirees with complex income sources should consult a qualified tax professional for personalized guidance.
Frequently Asked Questions About Maryland Taxes
What is the Maryland state income tax rate structure?
Maryland uses 2-5.75% progressive (8 brackets + county) system. This rate structure determines how much state tax you owe based on your taxable income after subtracting the standard deduction of $2,550 single / $5,100 married. Understanding where your income falls within this structure is the first step in estimating your state tax liability. Taxpayers should verify current year rates with the state department of revenue, as legislative changes can affect brackets and rates from year to year.
Does Maryland tax Social Security and retirement income?
SS exempt, up to $34,000 pension exclusion 65+. Social Security benefits are generally treated favorably across most states, and Maryland follows this approach. However, federal taxation of Social Security may still apply based on your combined income level. Retirees should also consider how Maryland handles pension income, 401(k) withdrawals, and IRA distributions when planning their retirement budget, as state-level treatment varies significantly across the country.
What are the sales and property tax rates in
The Maryland state sales tax rate is 6%. Combined state and local rates can vary by city and county. Property taxes average approximately 1.05% of home value. Maryland counties impose an additional local income tax. Taxpayers should consider these consumption-based and property-based taxes when evaluating their overall tax burden, as they can significantly affect the true cost of living in Maryland compared to other states with different tax structures.