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Relocating to Maryland: state taxes, residency rules and cost of living

Official figures for Maryland: state income tax, capital gains, estate and inheritance tax, sales tax and the residency test, with rents, home values, price levels and safety from federal statistics.

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6.5%Top state income tax rate
6%State sales tax rate
$1,822Median gross rent per month
105.0Price level (US = 100)
Data updated 30 October 2026 Official sources: state revenue departments, Census Bureau, BEA, EIA, FBI Also served to AI agents via MCP

The short answer

What does it cost to live in Maryland?

Maryland state income tax: Graduated, top rate 6.5% from $1,000,000 of taxable income (single filer). Median gross rent is $1,822 per month and the price level is 105.0 against a US average of 100. Sales, estate and inheritance taxes and the residency rule are set out below with their sources.

Evidence: Official source · Machine-readable data · As of 30 October 2026

State tax rules

State taxes in Maryland

Each rule below is read from the Maryland revenue department or statute and checked against an independent table. Local taxes are not included.

State income tax
Graduated, top rate 6.5% from $1,000,000 of taxable income (single filer)
Source
Capital gains
Maryland taxes capital gains as ordinary income, with an extra 2% surtax on net capital gains for filers with federal AGI above USD 350,000.
Source
Estate tax
Maryland levies a state estate tax.
Source
Inheritance tax
Maryland levies a 10% inheritance tax on collateral heirs, while spouses, children, parents, grandparents, siblings and lineal descendants are exempt.
Source
Who is a resident
A Maryland resident is a person domiciled in the state on the last day of the tax year, or a person who maintained a place of abode in Maryland for more than six months of the year, whether domiciled there or not.
Source
Estate tax exemption
$5,000,000
Source
Sales tax
Statewide rate 6%; local rates may be added
Source

State level only. Local income taxes (for example city or county taxes) and local sales taxes are added on top where they exist.

Cost of living

Housing, prices and safety in Maryland

Housing, prices and safety in Maryland
MetricValue
Median gross rent per month$1,822
Median home value$445,800
Property tax as a share of home value0.98%
Median real estate taxes paid per year$4,368
Median household income$107,700
Price level (US = 100)105.0
Housing price level (US = 100)121.1
Residential electricity price21.31 cents per kWh

Rent, home value, property tax and income: Census Bureau, American Community Survey 2025. Price levels: BEA Regional Price Parities 2024. Electricity: EIA, year to date through August 2026.

Back to the state overview · Methodology and sources

Questions

Living in Maryland: common questions

Does Maryland have a state income tax?

Maryland state income tax: Graduated, top rate 6.5% from $1,000,000 of taxable income (single filer). Federal income tax applies in addition, as in every state.

What is the sales tax in Maryland?

The statewide sales tax rate in Maryland is 6%. Counties and cities may add local rates.

How much does housing cost in Maryland?

In Maryland the median gross rent is $1,822 per month and the median value of an owner-occupied home is $445,800, according to the Census Bureau American Community Survey 2025.

Who counts as a resident of Maryland for income tax?

A Maryland resident is a person domiciled in the state on the last day of the tax year, or a person who maintained a place of abode in Maryland for more than six months of the year, whether domiciled there or not.

Information, not tax or legal advice. Rates are statutory state rates for the stated year; local income, sales and property taxes, deductions and federal tax are not included. Statistics are the latest official releases for the year shown. Confirm your own position with the state revenue department or a tax adviser.

Plan the move with a specialist

Residence, tax domicile and timing decide what a move is worth. Our consultants help you weigh state tax, cost of living and your immigration status together, in confidence.

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