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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 IncomeEstimated State TaxEffective Rate
$50,000$2,8755.8%
$100,000$5,7505.8%
$200,000$11,5005.8%

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

Alaska

Florida

Nevada

New Hampshire

South Dakota

Tennessee

Compare Against Other States

All 50 US States + DC

Ranked by tax-friendliness for retirees. Grouped by income-tax type.

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Retirement Methodology Calculators

How much do the big names actually say you need? See each guru's assumed return and withdrawal rate, side by side with academic defaults.

Dave Ramsey

12% / 8%

Bill Bengen

4% rule

Bogleheads

7% / 4%

FIRE Calculator

See how much you need to retire — in Maryland or anywhere else.

Safe Withdrawal Rate

Model your retirement paycheck with real historical data.

Tax rates and programs are subject to change. Data is current for 2024–2025. Always consult a qualified tax professional before making relocation decisions.