Live in Delaware, work in Maryland
No reciprocity: you file a nonresident return in the work state and pay its tax. Your home state gives a credit for that tax, so you pay the home state only if its tax is higher.
State income tax: $6,489 a year
Living in Delaware and working in Maryland, you'd pay about $6,489 in state income tax on $100,000 of wages, $1,230 more than if you worked in Delaware.
No reciprocity: you file a nonresident return in the work state and pay its tax. Your home state gives a credit for that tax, so you pay the home state only if its tax is higher.
State tax at different salaries
| Wages | To MD | To DE | Total | If you worked in DE |
|---|---|---|---|---|
| $50,000 | $2,989 | $0 | $2,989 | $2,098 |
| $75,000 | $4,739 | $0 | $4,739 | $3,609 |
| $100,000 | $6,489 | $0 | $6,489 | $5,259 |
| $150,000 | $10,324 | $0 | $10,324 | $8,559 |
| $250,000 | $18,125 | $0 | $18,125 | $15,159 |
Single filer, all wages earned in Maryland, 2026 state tax rules, standard deductions. State income tax includes Maryland's 2.25% special nonresident tax, which nonresidents pay instead of county tax. Other local income taxes are not included.
What to do
- Ask your employer to withhold Maryland tax. If Delaware's tax is higher, withhold the difference for Delaware too (or make estimated payments) to avoid an underpayment penalty.
- File the Maryland nonresident return first, then claim the credit for taxes paid to another state on your Delaware resident return.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Local income taxes
- Maryland: All 23 counties + Baltimore City levy a resident local income tax (about 2.25%-3.3%, on the state return). Nonresidents working in MD (from non-reciprocity states such as DE) pay a special nonresident tax (2.25% for 2026, equal to the lowest county rate) in place of county tax. Residents of PA, VA, WV, DC covered by reciprocity owe neither.
- Delaware: Wilmington levies a 1.25% earned income tax on residents and on nonresidents working in the city - relevant for PA, NJ, MD commuters.
Frequently asked questions
Do I pay Maryland income tax if I live in Delaware?
Yes. Maryland taxes wages earned there by nonresidents. On $100,000 that's about $6,489.
Do I have to file taxes in both Delaware and Maryland?
Usually yes: a nonresident return in Maryland and a resident return in Delaware, where you claim a credit for the tax paid to Maryland. File the Maryland return first.
Will I be taxed twice?
Not on the same state-level wages. Delaware credits the tax you pay Maryland, so your total is about $6,489 on $100,000, compared with $5,259 if you also worked in Delaware. Local city or county taxes may still apply.
Related
- Live in Maryland, work in Delaware
- Moving from Delaware to Maryland
- Moving from Maryland to Delaware
- Live in Delaware, work in New Jersey
- Live in Delaware, work in Pennsylvania
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.