Retirement taxes by state
How Maryland taxes retirement income in 2026
Maryland's income tax rates run from 2% to 6.5%. Here's how Maryland treats Social Security, retirement-account withdrawals, pensions and Roth conversions in 2026 — and what that means in dollars: a retired couple, both 67, with $98,000 of income pays about $655 in Maryland income tax.
Updated October 2026 · 2026 tax year
Maryland at a glance
- Income tax from 2% to 6.5%.
- Social Security isn't taxed.
- 401(k)/403(b) and pension income (not IRAs): up to $40,600 per person excluded from age 65, less Social Security.
- Extra $1,000 deduction per person from age 65.
- An extra 2% on capital gains when income exceeds $350,000.
Maryland retirement tax questions
Does Maryland tax Social Security?
No. Social Security isn't taxed.
Does Maryland tax 401(k) and IRA withdrawals?
Partly. 401(k)/403(b) and pension income (not IRAs): up to $40,600 per person excluded from age 65, less Social Security. Also: extra $1,000 deduction per person from age 65.
Does Maryland tax pensions?
Partly. 401(k)/403(b) and pension income (not IRAs): up to $40,600 per person excluded from age 65, less Social Security.
Does Maryland tax Roth conversions?
Yes. A Roth conversion counts as income in Maryland in the year you convert, taxed at the state's regular rates. Qualified Roth withdrawals later aren't taxed.
What is Maryland's income tax rate in 2026?
Maryland's income tax rates run from 2% to 6.5%.
What retirees actually pay in Maryland: three examples
Calculated with Retirology's tax engine under 2026 law, using each state's standard deduction, its retirement breaks and the 2026 federal rules for how much Social Security is taxable. For the retired couple, Maryland ranks 37th lowest of the 50 states and DC.
| Household | Total income | Maryland tax | Share |
|---|---|---|---|
| Retired couple, both 67 $48,000 of Social Security, $40,000 drawn from IRAs and 401(k)s, and $10,000 of qualified dividends | $98,000 | $655 | 0.7% |
| Single retiree, 70 $30,000 of Social Security, a $25,000 pension and $15,000 of IRA withdrawals | $70,000 | $985 | 1.4% |
| Early-retired couple, both 56, converting to Roth A $60,000 Roth conversion and $20,000 of long-term gains and qualified dividends, living on savings | $80,000 | $3,125 | 3.9% |
State income tax only — before local taxes, property tax relief and credits not listed above. Federal income tax is extra and the same in every state.
Maryland income tax brackets (2026)
Rates apply to Maryland taxable income, after the state's deductions and the retirement breaks above. Brackets are adjusted for inflation each year.
| Single | Rate | Married filing jointly | Rate |
|---|---|---|---|
| Up to $1,000 | 2% | Up to $1,000 | 2% |
| $1,000 – $2,000 | 3% | $1,000 – $2,000 | 3% |
| $2,000 – $3,000 | 4% | $2,000 – $3,000 | 4% |
| $3,000 – $100,000 | 4.75% | $3,000 – $150,000 | 4.75% |
| $100,000 – $125,000 | 5% | $150,000 – $175,000 | 5% |
| $125,000 – $150,000 | 5.25% | $175,000 – $225,000 | 5.25% |
| $150,000 – $250,000 | 5.5% | $225,000 – $300,000 | 5.5% |
| $250,000 – $500,000 | 5.75% | $300,000 – $600,000 | 5.75% |
| $500,000 – $1,000,000 | 6.25% | $600,000 – $1,200,000 | 6.25% |
| Over $1,000,000 | 6.5% | Over $1,200,000 | 6.5% |
Details and limits
Pension exclusion ($40,600 for 2026, less Social Security) covers employer plans but not IRAs. County income taxes (2.25-3.3%) are separate — pick a locality where listed.
Local income taxes
Some places in Maryland add a local income tax. Retirology models these when you pick your locality:
- Baltimore City
- Montgomery County
- Prince George's County
- Howard County
- Baltimore County
Sources
Rates and rules for the 2026 tax year, from Retirology's state tax data (reviewed October 2026):
This page explains state tax rules in general terms. It isn't tax advice — check your state's official instructions or a tax professional for your situation.