Retirement Tax Breakdown for Maryland Residents

Complete Maryland retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #18 of 51.

State Income Tax
5.75% top rate

8 bracket(s)

Capital Gains Rate
5.75%

Treated as ordinary income

Property Tax Rate
1.01%

#22 (Moderate)

Sales Tax Rate
6%

State 6% + local avg 6%

Tax-Friendly State

Maryland exempts Social Security and offers a pension exclusion up to $35,800 for those 65+. Local income taxes add roughly 3% on top of state rates.

Retirement Income Taxation

Social Security

Not taxed

Pension Income

Taxable

Retirement Exemption

None

Tax Comparison Summary

State income tax5.75% top
Capital gains5.75%
Property tax1.01% effective
Sales tax6% combined
Overall retiree rank#18 of 51

Maryland Income Tax Brackets

State Tax Bracket Schedule

RateFromTo
2%$0$1,000
3%$1,000$2,000
4%$2,000$3,000
4.75%$3,000$100,000
5%$100,000$125,000
5.25%$125,000$150,000
5.5%$150,000$250,000
5.75%$250,000No limit

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