Live in Delaware, work in Maryland
For a full-year Delaware resident working only in Maryland, Maryland taxes the wages and Delaware may give a limited resident credit. The Wilmington case needs a separate check.
Choose your next step
Payroll starting point: Maryland MW507 (opens in new tab). Delaware residence is not a Maryland wage-withholding exemption. This example is outside Wilmington.
Official tax guidance for both states
Check withholding, filing requirements and current forms with each state's tax agency.
- Delaware: Department of Finance - Division of Revenue (opens in new tab)
- Maryland: Comptroller of Maryland - Information for Business Taxpayers (opens in new tab)
Agency directory checked 2026-10-01 against the IRS state-government directory. This verifies the agency links, not an individual tax result. Use forms for the year you are filing.
Before you use this estimate
This model assumes a full-year resident of Delaware, ordinary employee wages and all workdays physically in Maryland. Check exemption eligibility before treating a work-state amount of $0 as your own result. Withholding is a prepayment, not final tax liability. Other income, a move during the year, remote work and separate local taxes or credits can change the result.
State income tax: $6,489 a year
Modeled annual state income tax for living in Delaware and working in Maryland: about $6,489 on $100,000 of wages, $1,230 more than if you worked in Delaware.
- This Delaware–Maryland estimate is outside Wilmington; the Form 515/local-tax case is not calculated.
Without wage reciprocity, the work state may tax wages earned there. Your home state generally offers a limited credit for eligible tax paid on the same income. Filing requirements, credit limits and local taxes need a separate check.
Maryland low-income limits: this schedule estimate does not apply Maryland's minimum-filing relief or poverty-level credit. A low-income worker may owe less or no Maryland tax. Check the official filing requirements (opens in new tab) and Form MW507 exemption instructions (opens in new tab) for your circumstances and filing year.
Tax guide and official sources: live in Delaware, work in Maryland
Official agency starting points: Delaware tax agency (opens in new tab) · Maryland tax agency (opens in new tab). These directory links identify the selected states' agencies, not your filing obligations. Check their individual-tax guidance and forms for the year you are filing.
This is the usual filing pattern, not a determination that you must file. Filing thresholds, age or dependent status, other income and withholding refunds can change which returns you need.
How this $100,000 estimate adds up
These steps follow the selected home, work state, salary and filing status. They reconcile the model's annual liability, not the amounts withheld from your paycheck.
| Step | Maryland work state | Delaware home state |
|---|---|---|
| Tax before the modeled other-state credit | $6,489 | $5,259 |
| Modeled other-state credit subtracted | $0 | $5,259 |
| Tax after that credit | $6,489 | $0 |
Total: $6,489 + $0 = $6,489 a year. Amounts are rounded for display. Work-state wage exemptions, when applicable, are already reflected in the first row; they are not an other-state credit.
The modeled credit is applied in Delaware, the home state. Actual eligibility and credit limits require the state instructions. Included county components stay in these amounts; excluded local taxes and credits stay excluded. Federal income tax, payroll programs and refund eligibility are outside this reconciliation.
State tax at different salaries
| Wages | To MD | To DE | Modeled 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.
From paycheck withholding to your returns
- Withholding: Give Maryland payroll Form MW507 to set withholding. Delaware residence alone is not a wage-reciprocity exemption. Check Delaware resident withholding or estimated payments separately; do not treat withholding as final liability or automatically stop it because a resident credit may apply.
- Returns: For this example's Delaware resident living outside Wilmington, prepare Maryland nonresident Form 505 and Form 505NR first, then Delaware resident Form PIT-RES with its other-state-tax-credit worksheet and the supporting signed Maryland return. The 2025 Delaware instructions place the credit on line 28; confirm the line on the final tax-year form. Maryland directs Wilmington residents to Form 515 instead, a separate local-tax case not calculated here.
- Credit or refund: Delaware gives a limited resident credit for eligible Maryland tax on income taxed by both states. Maryland's special nonresident tax is separate from county tax paid by Maryland residents. The Delaware credit is capped by its tax attributable to the other state's income and eligible tax paid net of credits; city wage taxes and county taxes paid directly to a county are excluded from the Delaware worksheet. Wilmington and other local-tax credits require separate checking.
Worked example: $100,000 of wages
Single filer, full-year resident of Delaware, all work performed in Maryland, no other income, standard deductions and modeled personal exemptions. Before credit, Delaware tax is $5,259. Modeled Delaware credit: $5,259. Pay $6,489 to Maryland and $0 to Delaware, modeled total $6,489.
Maryland taxable wages in this example are $100,000 - $3,350 standard deduction - $3,200 exemption = $93,450. Before rounding, its state component is $4,386.375 and its 2.25% special nonresident component is $2,102.625, giving $6,489.00 combined. Delaware's pre-credit state estimate is $5,259.00; the modeled $5,259.00 resident credit leaves $0 Delaware state tax. This all-wages example is outside Wilmington and excludes local returns, other credits, other income and return-level rounding.
Annual liability, not paycheck withholding or a refund estimate. Federal tax, payroll programs, other local taxes, special credits and part-year residency are excluded. 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.
Remote-work and local exceptions
This example assumes full-year Delaware domicile outside Wilmington, no Maryland statutory residence and all workdays physically in Maryland. A Maryland abode or a move during the year can change residency and returns. Delaware home-working days, other income and special compensation need separate sourcing. The Form 515/Wilmington city-tax case and other local taxes or credits are excluded; do not use this example as that calculation.
Official forms and instructions
- Maryland Form MW507 (2026): payroll withholding certificate (opens in new tab)
- Maryland nonresident booklet (2025): Forms 505/505NR and special nonresident tax (opens in new tab)
- Maryland official filing guidance: Delaware and Wilmington residents (opens in new tab)
- Maryland Form 515 (2025): separate nonresident local-tax return (opens in new tab)
- Delaware PIT-RES instructions (2025): line 28 credit worksheet and limits (opens in new tab)
- Delaware current personal-income-tax forms and editions (opens in new tab)
Source audit 2026-10-20. Use the return and instructions for the year you are filing; a current-forms link may still show a prior-year return. Official sources checked; not independently reviewed.
Prepare your DE → MD filing document packet
Match the task to the records and official instructions before entering a state return. This is for someone who lives in Delaware and works in Maryland; reversing those states can change the forms and credit direction.
| Your task | Have ready and check | Official starting point |
|---|---|---|
| Prepare the Maryland nonresident calculation first | For the outside-Wilmington example, gather the federal return, Maryland wage/withholding statements and actual work-location records for Forms 505/505NR. | Maryland nonresident instructions (opens in new tab) |
| Support the Delaware resident-credit claim | Keep the completed, signed Maryland return and the eligible tax-paid amounts for Delaware’s credit worksheet. Use the tax-year credit worksheet, not a line number from an older FAQ. | Delaware resident instructions (opens in new tab) Current Delaware forms (opens in new tab) |
| Resolve the Wilmington exception before using the example | Confirm whether your residence is inside Wilmington city limits. Maryland directs that local-tax case to Form 515, rather than the example’s ordinary nonresident path. | Maryland filing guidance (opens in new tab) Maryland Form 515 (opens in new tab) |
Use the return edition for the year being filed; a linked source may still show a prior-year form. Actual withholding, other income and completed returns determine a balance or refund. For a move during the year or a different work pattern, check the route exceptions and moving-year tax guide. Keep these records privately; the calculator does not need your tax documents or personal identifiers.
What to do
- 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 and Baltimore City levy resident local income tax (about 2.25%–3.3%, on the state return). Nonreciprocal nonresidents generally pay the 2.25% special nonresident tax instead of resident county tax; some home jurisdictions require Form 515. Pennsylvania reciprocal wages are exempt from Maryland state tax, but Maryland local tax may still apply. MW507 line 5 covers the Pennsylvania state exemption; lines 6 and 7 cover separate local exemptions. Form 515 may be required, depending on the Pennsylvania home jurisdiction and Maryland work county. Reciprocity is not a blanket local-tax exemption.
- 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?
For this example's Delaware resident living outside Wilmington, prepare Maryland nonresident Form 505 and Form 505NR first, then Delaware resident Form PIT-RES with its other-state-tax-credit worksheet and the supporting signed Maryland return. The 2025 Delaware instructions place the credit on line 28; confirm the line on the final tax-year form. Maryland directs Wilmington residents to Form 515 instead, a separate local-tax case not calculated here.
Will I be taxed twice?
The modeled state credit reduces overlap on eligible wages; separate local taxes or sourcing differences can still leave additional tax. 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.