Maryland is unusual: on top of a state income tax of 2% to 5.75%, every resident also pays a county income tax of 2.25% to 3.30%, so your real rate is the two stacked together.
That county layer is the piece most take-home estimates forget, and it is why Maryland's effective rate is higher than the state schedule alone suggests. Here is how both parts work on a real paycheck. See your exact take-home with the free Maryland paycheck calculator.
How Maryland's income tax works
Maryland's state income tax is mildly progressive: 2% on the first $1,000, rising to 4.75% on most middle incomes, and topping out at 5.75% (plus new 6.25% and 6.5% brackets above $500,000 for 2025). It applies after a standard deduction (capped at $3,350 single / $6,700 married) and a $3,200 personal exemption.
The bigger story is local: every Maryland county and Baltimore City levies its own income tax, from 2.25% to 3.30%. The most populous counties (Montgomery, Prince George's, Howard, and Baltimore City) sit near the 3.2% top, so we fold a representative 3.2% county rate into the figures below to reflect reality.
| Taxable income | Rate |
|---|---|
| $0 – $1,000 | 2% |
| $1,000 – $3,000 | 3% – 4% |
| $3,000 – $100,000 | 4.75% |
| $100,000 – $250,000 | 5% – 5.5% |
| $250,000 – $500,000 | 5.75% |
| Over $500,000 | 6.25% – 6.5% |
Your take-home on a $65,000 salary in Maryland
Here is how a $65,000 salary breaks down for a single filer, using 2025 federal and FICA figures alongside Maryland's a 2% to 5.75% state tax plus a mandatory county tax.
| Item | Annual |
|---|---|
| Federal income tax | $5,246 |
| FICA (Social Security + Medicare) | $4,973 |
| Maryland income tax | $4,594 |
| Take-home pay | $50,188 |
| Percent of gross kept | 77.2% |
On a $65,000 salary a single filer keeps about $50,188, or 77.2% of gross, once both the Maryland state tax and an estimated 3.2% county tax are included (roughly $4,594 combined). That is one of the heavier state-and-local burdens in the country, and it bites hardest in the high-cost DC suburbs of Montgomery and Prince George's counties. Compare with Virginia.
The county income tax is the real story
Maryland is one of the only states where local income tax is universal and large. Your county rate (2.25% in the lowest counties, up to 3.30%) is added right on top of the state rate, so a typical resident's combined marginal rate is around 8% to 9%. Always check your specific county.
Maryland does not tax Social Security and offers a pension exclusion for retirees, which softens the combined rate later in life even though workers feel the full stack.
How to keep more of your Maryland paycheck
Because Maryland stacks state and county tax, pre-tax 401(k) and HSA contributions are especially valuable: each dollar dodges federal, state, and county tax at once (and the HSA also skips FICA). In the pricey DC suburbs, maxing them is one of the few levers you fully control.