Maryland Tax Policy & Rates 2026
Income tax, sales tax, property tax, and overall tax burden for Maryland in 2026, with political context.
No
No Income Tax
5.75% (top) + county up to 3.2%
Income Tax Rate
#6
Tax Burden Rank (1=highest)
#34
Property Tax Rank (1=highest)
Tax Policy Overview
Maryland has high income taxes when state and county rates are combined — one of the highest effective income tax burdens. The proximity to Washington DC means many high earners live in Maryland, generating significant revenue. Corporate taxes are above average.
Key Tax Rates
| Tax Type | Rate / Status |
|---|---|
| Income Tax | 5.75% (top) + county up to 3.2% |
| No Income Tax | No |
| Sales Tax | 6.0% |
| No Sales Tax | No |
| Corporate Tax | 8.25% |
| Property Tax Rank | #34 nationally (1=highest) |
| Overall Tax Burden Rank | #6 nationally (1=highest) |
Political Context
Maryland taxes high earners significantly to fund generous public services. The DC suburb economy means high average incomes generate substantial revenue. Republicans argue high taxes drive the wealthy to Virginia (which has lower rates). DOGE federal workforce cuts that reduce Maryland income are a growing fiscal concern.