Maryland's Progressive Income Tax Brackets
Maryland uses 8 tax brackets ranging from 2% to 5.75%, with a $2,550 standard deduction. The top 5.75% rate kicks in at $250,000 of taxable income. Like the federal system, Maryland's brackets are marginal — only income within each range is taxed at that bracket's rate. An $85,000 earner in Maryland pays an effective state rate well below 5.75% because the first dollars flow through lower brackets. The bracket visualization in the calculator above shows exactly how your income is distributed across Maryland's brackets.
Local Income Taxes in Maryland
Several Maryland jurisdictions levy their own income taxes on top of the state rate: Baltimore City: 3.2% flat rate; Montgomery County: 3.2% flat rate; Prince George's County: 3.2% flat rate; Howard County: 3.2% flat rate; Baltimore County: 3.2% flat rate; Anne Arundel County: 2.81% flat rate; Frederick County: 2.96% flat rate; Harford County: 3.06% flat rate; Worcester County: 2.25% flat rate. These local taxes can add $1,000-$5,000+ to your annual tax bill depending on income level and jurisdiction. The calculator above includes all 9 local tax jurisdictions we track for Maryland — select your city or county from the dropdown to see the combined impact. If you're considering relocating within Maryland, the local tax difference between jurisdictions can shift your take-home pay by $50-$200+ per paycheck.
Maximizing Your Take-Home Pay in Maryland
The most effective lever for increasing take-home pay in Maryland is pre-tax retirement contributions. A traditional 401(k) contribution reduces your taxable income for both federal and state taxes. At $85,000 in Maryland, your combined marginal rate (federal + state) is approximately 28%. Every $100 directed to a pre-tax 401(k) saves $28 in taxes — you sacrifice $72 in take-home pay, not $100. HSA contributions (if you have a high-deductible health plan) go further — they reduce federal, state, AND FICA taxes, saving roughly 36% on every contributed dollar.