Marylandincome tax up to 5.75%, 21st highest property tax, median home $420K

Worth knowing before you move to Maryland

Maryland is the only state that levies both an estate tax and an inheritance tax, and its counties add their own income taxes of up to 3.2% on top of the state rate. Household income is the highest in the country, concentrated in the Washington suburbs of Montgomery and Howard counties. Social Security is not taxed and there is a pension exclusion for residents 65 and over.

What Maryland taxes, and what it doesn't

Maryland levies a graduated income tax that tops out at 5.75%. A household earning $75,000 pays an effective 4.7%, about $3,510 a year; at $150,000 the effective rate is 4.8%. Among the 41 states that tax income, Maryland has the 18th highest effective rate at $100,000 of income.

Property tax runs 0.97% of home value a year, roughly $4,074 on the state's median home of $420K. The national effective rate is about 1.10%, and Maryland has the 21st highest rate of the 50 states.

Combined state and local sales tax averages 6.00%, the 11th lowest in the country (the state portion is 6%).

For retirees: Social Security benefits are not taxed, pension income is partly exempt, and an estate tax applies above $5 million and there is an inheritance tax on some heirs as well.

Capital gains are taxed as ordinary income.

Housing and the cost of living in Maryland

Maryland's cost of living index is 116, where 100 is the national average; that is the 8th most expensive of the 50 states.

The median home costs $420K, 38% above the national figure and the 15th highest among the states. A two-bedroom rents for about $1,950 a month.

Carrying costs matter as much as the price: home insurance averages $1,600 a year, flood coverage adds about $800 where it is needed, car insurance runs $2,040.

Budget $145 a month for electricity and gas, $580 a month in groceries for two, $1,850 a month for full-time infant care.

Safety, health and schools

Violent crime is 468 incidents per 100,000 residents in the FBI's 2023 Crime Data Explorer figures, above the median state (387); Maryland is the 13th most violent of the 50 by that measure. Property crime is 1,734 per 100,000.

Life expectancy is 77.4 years (County Health Rankings 2024). 6.5% of residents have no health insurance, and the state has expanded Medicaid. The Commonwealth Fund's 2023 scorecard ranks Maryland's health system 12th of 50.

Education Week's 2023 Quality Counts report ranks K-12 schools 4th in the country.

Politics, guns and social policy

Politically, Maryland is a solidly Democratic state that went to Harris by 24 points in 2024.

On guns, concealed-carry permits are may-issue, at the discretion of local authorities, and Giffords grades the state's gun laws A.

Abortion is protected by state law. Marijuana is legal for adults. Maryland is not a right-to-work state, and the minimum wage is $15.00 an hour.

Climate, risk and getting around

Natural disaster risk is moderate. The main hazards are hurricane, flood. Annual average air quality index is 40 (under 50 is good).

Maryland has a major hub airport, with about 90 nonstop destinations from its busiest airport.