Key Takeaways
- Maryland has a 5.75% state tax PLUS county taxes up to 3.2%
- Total tax burden can reach 8.95% in high-tax counties
- 183-day statutory residency rule applies
- Many DC-area workers can relocate while working remotely
Overview: Maryland Tax Burden
Maryland has a 5.75% state income tax plus mandatory county taxes ranging from 2.25% to 3.2%. Combined rates reach up to 8.95%—comparable to much higher-profile states like New York.
$5,000 - $25,000+
Annual savings depending on income and county
Maryland State + County Taxes
State rate is 5.75% for income over $250,000. County rates vary:
| County | Local Rate | Combined Rate |
|---|---|---|
| Howard County | 3.2% | 8.95% |
| Montgomery County | 3.2% | 8.95% |
| Prince George's County | 3.2% | 8.95% |
| Anne Arundel County | 2.81% | 8.56% |
| Baltimore County | 3.2% | 8.95% |
| Baltimore City | 3.2% | 8.95% |
Often Overlooked: Maryland's combined rate rivals New York's, but gets less attention. Many Maryland residents don't realize how much they could save by establishing Florida residency.
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