Unlike sales tax, which is the same everywhere in Maryland, income tax has two layers. Residents owe tax to the state, and they also owe tax to the county or city where they live.
What are the two layers of Maryland income tax?
Maryland uses a progressive state income tax, which means the rate rises as taxable income rises. In addition, all 23 counties and Baltimore City levy their own local income tax. Most Maryland residents pay both on the same income, and the local portion is calculated on Maryland’s resident return based on the county where the taxpayer lives.
What are the rates?
Published summaries of the tax rules for tax year 2025 describe these ranges:
| Layer | Range reported for tax year 2025 |
|---|---|
| State income tax | 2% to 6.5% |
| County and Baltimore City income tax | Generally 2.25% to 3.30% |
| Combined | About 4.25% to 9.8%, depending on income and county |
These are ranges reported for a specific tax year. The Maryland legislature changed some income tax rules and deductions in 2025, and rates and brackets can change again, so the figures should be treated as a guide only.
Who collects the tax?
The Comptroller of Maryland collects state income tax and administers the state and local withholding information that employers use.
How should you read a rate range?
A range does not mean every taxpayer pays the top rate. Because the state tax is progressive, each portion of income is taxed at the rate for its bracket, and the county rate depends on where the taxpayer lives. As a purely hypothetical illustration, if $10,000 of income were taxed at a combined 8 percent, the tax on it would be $800 ($10,000 × 0.08); actual bills depend on brackets, deductions and the county rate.
Why does the county matter?
Because the local rate differs by county, two residents with the same income can owe different totals if they live in different places. That is one reason moving across a county line can change a tax bill, and why anyone comparing jobs or homes in different counties should look up the local rate.
Where to find current figures
The Comptroller of Maryland publishes current rates, withholding guidance and forms. For another part of the tax system, see our guide to Maryland’s sales tax, and for wages, see Maryland’s minimum wage.
This article is general information, not tax advice. Rates and rules change; check the Comptroller of Maryland or a qualified tax professional for your situation.
Sources: Comptroller of Maryland; Maryland Department of Legislative Services; TaxAct
