Retire in Maryland: 2026 Tax & Cost of Living Guide
One of only two states with both estate and inheritance taxes. Exempts Social Security and offers moderate pension exclusions.
State income tax
Progressive — top rate 5.75%
Social Security
Not taxed
Estate tax
Yes
Property tax
1.05%
How Maryland Taxes Retirement Income
- Social Security
- Not taxed
- Public pensions (state/federal)
- Taxed
- Private pensions
- Taxed
- 401(k) / IRA withdrawals
- Taxed
Exemption / exclusion
$35,100 pension exclusion age 65+ ($15K for military retirees all ages)
What Would You Pay in State Income Tax?
Rough estimates at the top marginal rate (actual effective rate will be lower for most retirees due to brackets, exemptions, and standard deduction):
| Annual Retirement Income | Estimated State Tax | Effective Rate |
|---|---|---|
| $50,000 | $2,875 | 5.8% |
| $100,000 | $5,750 | 5.8% |
| $200,000 | $11,500 | 5.8% |
Estate & Inheritance Tax
State Estate Tax
Exemption: $5,000,000 · Top rate: 16%
Federal estate tax exemption is $13.61M (2024) — Maryland's lower threshold means more estates are subject to state tax than federal.
Inheritance Tax
10% inheritance tax on non-immediate-family (siblings, friends); spouses/children exempt
We don't have detailed cost-of-living data for a city in Maryland yet. See our city guides for 300+ other cities worldwide, or compare Maryland against other US states below.
States With No Income Tax
Compare Against Other States
All 50 US States + DC
Ranked by tax-friendliness for retirees. Grouped by income-tax type.
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Tax rates and programs are subject to change. Data is current for 2024–2025. Always consult a qualified tax professional before making relocation decisions.