What is Maryland Income Tax? Rates & Tax Brackets

Updated for tax year 2025.

If you live or work in Maryland, you’ll likely need to file a Maryland state income tax return along with your federal return. Maryland uses a progressive state income tax structure with multiple rates, and most residents also pay local income tax based on where they live.

This guide explains Maryland’s 2025 income tax rates and brackets, standard deduction and exemptions, local taxes, and the updates for the current tax year. When you’re ready to file, TaxAct® automatically applies Maryland’s tax rules to help you accurately prepare your Maryland return alongside your federal return.

What is the Maryland state income tax?

Maryland state income tax is a tax on income earned by individuals. It is collected by the Maryland Comptroller and helps fund state services.

Maryland uses a progressive income tax structure with rates for tax year 2025 ranging from 2% to 6.5% at the state level, depending on your filing status and Maryland taxable income. Most Maryland residents also pay local income tax on the same income, which is calculated on Form 502 based on your county of residence.

Maryland income tax rates and tax brackets

To estimate your Maryland tax bill or refund, it helps to understand the state’s income tax brackets. The tax brackets in Maryland are progressive and vary depending on filing status and income level. The table below reflects Maryland’s 2025 state brackets, updated from the structure on the live Maryland refund page to include new high-income rates:

Tax Rate	Single or Married Filing Separately	Married Filing Jointly, Surviving Spouse, or Head of Household
2%	Up to $1,000	Up to $1,000
3%	$1,001–$2,000	$1,001–$2,000
4%	$2,001–$3,000	$2,001–$3,000
4.75%	$3,001–$100,000	$3,001–$150,000
5%	$100,001–$125,000	$150,001–$175,000
5.25%	$125,001–$150,000	$175,001–$225,000
5.50%	$150,001–$250,000	$225,001–$300,000
5.75%	$250,001–$500,000	$300,001–$600,000
6.25%	$500,001–$1,000,000	$600,001–$1,200,000
6.50%	Over $1,000,000	Over $1,200,000

If you need more information on how federal tax brackets work, you can use our tax bracket calculator for federal taxes. See the Maryland Comptroller’s 2025 tax rate alert for official rate information.

Maryland local income tax

In Maryland, local governments — including all 23 counties and Baltimore City — also levy income tax. Local income tax rates for 2025 generally range from 2.25% to 3.30% and are separate from the state income taxes shown in the table above. Maryland taxpayers pay local taxes based on the location of their residence, not the county where they work.

Maryland standard deduction

For tax year 2025, Maryland replaced its old income-based standard deduction formula with flat amounts. The Maryland standard deduction is $3,350 for single, married filing separately, and dependent filers, and $6,700 for married filing jointly, head of household, and qualifying surviving spouse filers.

You may compare Maryland itemized deductions against the standard deduction to see which lowers your Maryland tax liability, even if you claimed the federal standard deduction. However, taxpayers with federal adjusted gross income over $200,000 ($100,000 if married filing separately) may face an itemized deduction phase-out. See the Maryland Comptroller’s What’s New guidance and Form 502 instructions for details.

Maryland exemptions

Maryland allows personal exemptions on Form 502. Single filers with incomes below $100,000 generally qualify for a personal exemption of $3,200. If your income is above $100,000 (or $150,000 if married filing jointly), the personal exemption amount gradually reduces and phases out entirely once income exceeds $150,000 ($200,000 for joint filers), as carried from the live Maryland refund page — verify current amounts on Form 502B.

Maryland also offers credits and subtractions for qualifying taxpayers, such as the pension exclusion, military retirement income subtraction, and credits for taxes paid to other states on Form 502CR. Social Security benefits may be exempt from Maryland income tax for qualifying retirees. See the Maryland Comptroller individual income tax page and Form 502 instructions for eligibility and limits.

Maryland tax changes for 2025

Maryland’s 2025 legislative session brought several notable changes. The state added new top brackets at 6.25% and 6.5% for high-income earners, increased the standard deduction to flat $3,350 / $6,700 amounts, and introduced an itemized deduction phase-out for taxpayers with federal adjusted gross income over $200,000 ($100,000 married filing separately).

Maryland also imposed an additional 2% tax on net capital gains for individuals with federal adjusted gross income over $350,000, subject to certain exceptions. Some counties increased local income tax rates for 2025, with a maximum local rate of 3.30% now permitted. Form 502B is required with Form 502 to claim dependent and personal exemptions. See the 2025 Maryland tax alert for a full list of changes.

FAQs

Does Maryland have a state income tax?

Yes, Maryland has a state income tax. Maryland uses a progressive income tax structure with multiple tax rates for tax year 2025, ranging from 2% to 6.5% at the state level depending on your filing status and Maryland taxable income. Most Maryland residents also pay local income tax.

What is the Maryland income tax rate?

Maryland’s 2025 state income tax rates are 2%, 3%, 4%, 4.75%, 5%, 5.25%, 5.5%, 5.75%, 6.25%, and 6.5%. The rate that applies to you depends on your filing status and Maryland taxable income. The top marginal state rate for 2025 is 6.5% on income over $1,000,000 for single filers or over $1,200,000 for married filing jointly, head of household, and qualifying surviving spouse filers.

What are the Maryland income tax brackets for 2025?

Maryland’s 2025 tax brackets differ by filing status. Single and married filing separately filers use one set of income ranges, while married filing jointly, qualifying surviving spouse, and head of household filers use another. High-income earners face new 6.25% and 6.5% brackets for 2025. See the Maryland income tax brackets table above.

How does Maryland state income tax work?

Maryland state income tax generally starts with your federal adjusted gross income, then applies Maryland additions and subtractions to arrive at Maryland adjusted gross income. You subtract your standard deduction or itemized deductions, personal exemptions, and other allowable amounts to get Maryland taxable income, calculate state tax using Maryland’s rate schedule, and add local income tax based on your county of residence.

Do I have to file a Maryland state tax return?

You may need to file a Maryland state tax return if you are a Maryland resident whose gross income meets filing thresholds, if Maryland income tax was withheld from your payments, or if you are a part-year resident or nonresident with Maryland-source income. Filing requirements depend on your income, residency, and filing status, so check Maryland Comptroller guidance for your situation.

What is the Maryland standard deduction for 2025?

Maryland’s 2025 standard deduction is a flat $3,350 for single, married filing separately, and dependent filers, and $6,700 for married filing jointly, head of household, and qualifying surviving spouse filers. You may compare Maryland itemized deductions against the standard deduction even if you claimed the federal standard deduction, though high earners may face an itemized deduction phase-out.

How much is Maryland state income tax?

There isn’t one Maryland state income tax amount that applies to everyone. How much you owe depends on your Maryland taxable income, standard deduction or itemized deductions, personal exemptions, filing status, state and local tax rates, and available credits. Use the brackets above and Form 502 instructions as a starting point.

Why is my Maryland tax return different from my federal return?

Maryland conforms to the Internal Revenue Code on a fixed-date basis and does not automatically adopt all current federal changes. Maryland has its own standard deduction amounts, personal exemptions, additions and subtractions, local income tax, and rules for itemized deductions — including a state and local tax addback and itemized deduction phase-out for higher earners — that can make your Maryland taxable income and tax liability different from your federal return.

The good news is that our tax software automatically applies Maryland’s current tax rules when preparing your state return, so you don’t have to calculate these differences yourself.

For more information, visit the Maryland Comptroller. If you’d like to learn more about recent federal tax law changes, see our OBBB tax changes guide.

The bottom line

Maryland has a progressive state income tax for 2025 with state rates from 2% to 6.5%, plus local income tax in most counties. Knowing the brackets, new flat standard deduction, personal exemptions, and local tax rules can help you estimate what you may owe or get back.

When you’re ready to file, TaxAct can help you prepare your federal and Maryland returns in one place so you can file with confidence.

Already filed your taxes and waiting for your refund? Learn more about where your Maryland state tax refund is.

This article is for informational purposes only and not legal or financial advice.

All TaxAct offers, products and services are subject to applicable terms and conditions.

The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.

Citations

Maryland Comptroller. “Individual Income Tax.” Accessed 17 Aug. 2026.
Maryland Comptroller. “Changes to Standard and Itemized Deductions and State and Local Income Tax Rates (2025 Legislative Session).” Accessed 17 Aug. 2026.
Maryland Comptroller. “What’s New for the 2026 Tax Filing Season (2025 Tax Year).” Accessed 17 Aug. 2026.