Key Takeaways
- Maryland layers mandatory county income taxes of 2.25% to 3.30% (2026) on top of graduated state rates that now reach 6.5%
- Combined state plus county marginal rates reach 8.95% on income over $250,000 in 3.2% counties, and up to 9.8% at the very top
- 183-day statutory residency rule applies
- Many DC-area workers can relocate while working remotely
Overview: Maryland Tax Burden
Maryland pairs a graduated state income tax (5.75% on single-filer income over $250,000, with new 6.25% and 6.5% brackets above $500,000 and $1 million) with mandatory county income taxes ranging from 2.25% to 3.30% for 2026. In high-tax counties the combined marginal rate reaches 8.95% or more, comparable to much higher-profile states like New York. Florida has no state income tax and no county income tax, so a proper move eliminates both layers at once.
Maryland State + County Taxes
The state rate is 5.75% on single-filer income between $250,000 and $500,000, rising to 6.25% and then 6.5% above $500,000 and $1 million. 2026 county rates per the Maryland Comptroller:
| County | Local Rate (2026) | Combined Marginal Rate |
|---|---|---|
| Howard County | 3.2% | 8.95% |
| Montgomery County | 3.2% | 8.95% |
| Prince George's County | 3.2% | 8.95% |
| Anne Arundel County | 2.70% - 3.20% (bracketed) | Up to 8.95% |
| Baltimore County | 3.2% | 8.95% |
| Baltimore City | 3.2% | 8.95% |
| Dorchester and Kent Counties | 3.3% | 9.05% |
Combined rates shown add the county rate to Maryland's 5.75% state bracket (single-filer income between $250,000 and $500,000). The 6.25% and 6.5% state brackets push combined marginal rates as high as 9.8% above $1 million.
DC Area Commuters
Many Maryland residents work in DC or for federal agencies:
- Remote work arrangements allow Florida domicile
- Federal employee telework programs make relocation possible
- Contractors with flexible arrangements benefit significantly
Properly Exiting Maryland
- Establish Florida domicile (address, Declaration, DL, voter registration)
- Sell or rent Maryland property
- Update employer records to Florida
- File MD part-year return (502) for move year
- Keep detailed location records