Maryland retirement taxes at a glance
| Income | Taxed? | How |
|---|---|---|
| Social Security | No | Social Security and railroad retirement are fully exempt. |
| IRA withdrawals | Yes | Taxable: traditional, rollover and SEP IRAs do not qualify for the pension exclusion. |
| 401(k), 403(b) and 457(b) | Partly | Pension exclusion at 65 or if disabled: up to $40,600 for 2026 per person, minus all Social Security that person received. Covers defined benefit plans, 401(k), 403(b) and 457(b). |
| Private pensions | Partly | Same pension exclusion. |
| Government pensions | Partly | Same pension exclusion. Retired public safety workers 55 or older can also subtract up to $15,000. |
| Military retirement pay | Partly | Up to $12,500 subtracted under 55 and up to $20,000 from 55. |
| Roth conversions and Roth withdrawals | Partly | Conversions are taxable at state and county rates; qualified Roth withdrawals are not. |
What retirees pay in Maryland
Five households, priced on the same 2026 tax engine Killion’s planner uses: Social Security plus withdrawals from a traditional IRA, the standard deduction, and every age break the state and federal returns give. Examples are IRA withdrawals, which the pension exclusion does not cover. County tax is shown separately at the lowest and highest 2026 rates. Estimates for planning, not tax advice.
| Household | Social Security | IRA withdrawals | Maryland tax | County tax | Federal tax |
|---|---|---|---|---|---|
| Single, 67 | $24,000 | $20,000 | $0 (0.0%) | $280 to $411 | $0 |
| Single, 67 | $30,000 | $50,000 | $964 (1.2%) | $955 to $1,401 | $6,016 |
| Married, both 67 | $42,000 | $40,000 | $0 (0.0%) | $560 to $822 | $1,295 |
| Married, both 67 | $50,000 | $100,000 | $2,230 (1.5%) | $1,910 to $2,802 | $10,904 |
| Single, 62, before Social Security | $0 | $60,000 | $2,486 (4.1%) | $1,203 to $1,764 | $5,020 |
Maryland compared with other states
The same two households in each state we cover. In the nine states with no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming) both pay $0 of state tax.
| State | Married, 67: $42,000 Social Security, $40,000 IRA | Single, 67: $30,000 Social Security, $50,000 IRA |
|---|---|---|
| Arizona | $0 | $646 |
| California | $0 | $815 |
| Colorado | $0 | $1,139 |
| Maryland | $0 | $964 |
| Massachusetts | $1,490 | $2,245 |
| Michigan | $0 | $0 |
| North Carolina | $579 | $1,486 |
| Ohio | $347 | $682 |
| Pennsylvania | $0 | $0 |
| Virginia | $0 | $1,325 |
2026 rates and senior breaks
Maryland’s rate: 2% to 6.5% state, plus county tax of 2.25% to 3.30%.
| Rate | Single, over | Married filing jointly, over |
|---|---|---|
| 2% | $0 | $0 |
| 3% | $1,000 | $1,000 |
| 4% | $2,000 | $2,000 |
| 4.75% | $3,000 | $3,000 |
| 5% | $100,000 | $150,000 |
| 5.25% | $125,000 | $175,000 |
| 5.5% | $150,000 | $225,000 |
| 5.75% | $250,000 | $300,000 |
| 6.25% | $500,000 | $600,000 |
| 6.5% | $1,000,000 | $1,200,000 |
- Senior tax credit at 65: $1,000 at federal AGI up to $100,000 single; $1,750 for a joint return with both 65 or older up to $150,000 ($1,000 if one is 65).
- $1,000 extra exemption per person 65 or older.
- The pension exclusion fell from $41,200 for 2025 to $40,600 for 2026: it tracks the maximum Social Security benefit.
Local taxes: County income tax of 2.25% to 3.30% of Maryland taxable income, by county, collected on the state return. It applies to pension and IRA income; the exclusion lowers it too.
What people get wrong about Maryland
- Rolling a 401(k) into an IRA gives up the pension exclusion on that money.
- The exclusion is reduced by all Social Security received, not only the taxable part.
Tax on a 401(k) withdrawal in Maryland
A single filer aged 60 with no other income, taking one withdrawal in 2026:
| Withdrawal | Federal | Maryland |
|---|---|---|
| Tax on a $25,000 401(k) withdrawal | $890 | $824 |
| Tax on a $50,000 401(k) withdrawal | $3,820 | $2,011 |
| Tax on a $100,000 401(k) withdrawal | $13,170 | $4,386 |
| Tax on a $200,000 401(k) withdrawal | $36,734 | $9,650 |
Social Security across all fifty states, including the eight that can tax it, is on which states tax Social Security. Required minimum distributions add to this income from 73: see the RMD on $1 million.
The retirement tax calculator, set to Maryland
Set to a married couple, both 67, with $42,000 of Social Security and $40,000 of IRA withdrawals. Change any input, including the state.
On $82,000 of income, the 2026 tax is about $1,295: $1,295 federal and $0 Maryland. $20,450 of your Social Security is taxable. The next $1,000 you withdraw from an IRA would cost $185 in tax.
This year’s income sets your Medicare premiums for 2028. See your IRMAA tier.
Figures checked on against Maryland Comptroller, pension exclusion, Maryland Comptroller, seniors and retirees FAQ, Maryland resident tax booklet (2025) (PDF) and Maryland Comptroller, income tax rates and county rates.