What is the Maryland county piggyback tax?

Maryland is unique in that every county and Baltimore City levy their own income tax on top of the state rate. These "piggyback taxes" range from 2.25% to 3.20% of your Maryland taxable income. Combined with the state's 5.75% top rate, Maryland residents can face a total state + local income tax rate of up to 8.95%. When you move to Florida, you eliminate both the state AND county income tax entirely.

How does Maryland determine residency for tax purposes?

Maryland considers you a resident if your permanent home (domicile) is in Maryland, OR if you maintain a place of abode in Maryland and spend more than 183 days there during the tax year. The Comptroller of Maryland examines factors including: driver's license, voter registration, where you work, where your family lives, and where you maintain financial accounts. A change of domicile must be supported by clear actions and intent.

How does the DC/VA/MD tri-state situation complicate things?

Many Maryland residents work in Washington DC or Virginia, creating complex multi-state tax situations. Maryland has reciprocal agreements with DC, Virginia, West Virginia, and Pennsylvania. If you work in one of these states but live in Maryland, you only pay Maryland income tax. When you move to Florida, you simplify your tax situation significantly—Florida has no income tax, and you only need to worry about tax in states where you physically work.

How much can I save by moving from Maryland to Florida?

Maryland's combined state + county tax rate can reach 8.95%. For someone earning $150,000, potential savings could be approximately $10,000-$13,000 annually. For $300,000 in income, savings could exceed $25,000. For $500,000, savings could be $40,000+. Florida has no state income tax, no county income tax, and no city income tax of any kind.

Does Maryland have an exit tax on home sales?

Maryland does withhold tax when nonresidents sell property in the state. The withholding is 8.25% of the gain (or 2.25% if there's no gain), but this is not an extra "exit tax"—it's a prepayment of tax you would owe on Maryland-source income. If you sell your Maryland home before moving, as a resident you file normally. If you sell after becoming a Florida resident, Maryland will withhold tax on the gain, and you may need to file a Maryland nonresident return.

Can Maryland tax me after I leave?

Once you establish Florida domicile, Maryland can only tax "Maryland-source income"—income from work physically performed in Maryland, rental income from Maryland property, and income from Maryland-based businesses. Your investment income, retirement income, and income earned outside Maryland would no longer be taxable to Maryland.

What about Maryland's tax on retirement income?

Maryland taxes most retirement income but offers a pension exclusion of up to $36,200 (for those 65+). Social Security is exempt from Maryland tax. By moving to Florida, you eliminate state tax on ALL retirement income—401(k) distributions, IRA withdrawals, pension income, and investment income. For retirees with substantial retirement income, Florida residency can save thousands annually.

What documents should I keep to prove I left Maryland?

Maintain: Florida driver's license, Florida voter registration, Declaration of Domicile filed in Florida, lease or deed for Florida residence, utility bills in Florida, records of time spent in each state, Florida vehicle registration, updated estate documents executed in Florida, records of Maryland ties severed with dates, and any documentation proving you no longer maintain a Maryland abode.

Maryland → Florida Tax Migration

Escape Maryland's ~8.95% Combined Tax Rate

Maryland's state tax plus county piggyback tax creates one of the highest effective tax rates in the nation. Save $5,000-$45,000+ annually by establishing Florida residency. We handle the documentation so you can focus on your move.

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Your Maryland Tax Savings

See how much you could save by moving from Maryland to Florida

Your Annual Income

$150,000

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Maryland

$12,060/year in state + county tax

8.0% effective rate (state + county)

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Florida

$0/year in state tax

0% state income tax

YOUR ESTIMATED ANNUAL SAVINGS

$12,060

That's $120,600 over 10 years

*Estimate based on Maryland 2024 state tax brackets + average county rate of 3.2%. Individual results vary. Consult a tax professional.

How to Leave Maryland the Right Way

Our 5-step process protects you from state tax audits

Document Your Intent to Leave Maryland

Establish clear evidence of your intent to make Florida your permanent home. Create a timeline, document your reasons, and prepare for potential scrutiny from the Comptroller of Maryland.

Set Up Your Florida Address & Virtual Mailbox

Get a legitimate Florida residential address. Complete USPS Form 1583 with remote notarization. Your mail will be scanned and accessible from anywhere.

Obtain Florida Driver's License & Update Voter Registration

Surrender your Maryland license and get a Florida license. Register to vote in Florida. These are two of the strongest indicators of domicile change.

Sever Maryland Ties Systematically

Close Maryland bank accounts, update professional licenses, move financial advisors, and cancel Maryland memberships. If you work in the DC/VA/MD tri-state area, plan your exit carefully to avoid multi-state complications.

File Your Final Maryland Return & Maintain Florida Ties

File a part-year return for Maryland (both state and county). Going forward, build Florida ties: register vehicles, update estate documents, and maintain organized records of your Florida activities.

Complete Guide

Florida Residency: Everything You Need to Know

Learn about Florida's tax advantages, residency requirements, and how to establish domicile.

Learn More

Maryland Exit FAQ

Common questions about leaving Maryland for Florida

Ready to Leave Maryland Taxes Behind?

Eliminate Maryland's state AND county income taxes. We'll help you establish proper Florida residency and simplify your tax situation.

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