Live in Washington, DC, work in Maryland
Reciprocity agreement: you pay income tax only to your home state. Give your employer the work state's exemption form so it withholds for your home state instead.
State income tax: $5,532 a year
Living in Washington, DC and working in Maryland, you'd pay about $5,532 in state income tax on $100,000 of wages.
Reciprocity agreement: you pay income tax only to your home state. Give your employer the work state's exemption form so it withholds for your home state instead.
State tax at different salaries
| Wages | To MD | To DC | Total | If you worked in DC |
|---|---|---|---|---|
| $50,000 | $0 | $1,834 | $1,834 | $1,834 |
| $75,000 | $0 | $3,429 | $3,429 | $3,429 |
| $100,000 | $0 | $5,532 | $5,532 | $5,532 |
| $150,000 | $0 | $9,782 | $9,782 | $9,782 |
| $250,000 | $0 | $18,282 | $18,282 | $18,282 |
Single filer, all wages earned in Maryland, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- Reciprocity: DC residents who do not maintain a place of abode in MD for 183+ days are exempt from MD tax on wages; file Form MW507 with employer.
- 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.
Special credit rules
- DC: DC gives residents a credit for taxes paid to other states, but DC never taxes nonresident wages, so residents of other states working in DC need no credit.
Frequently asked questions
Do I pay Maryland income tax if I live in Washington, DC?
No. Under the reciprocity agreement you pay only Washington, DC. DC residents who do not maintain a place of abode in MD for 183+ days are exempt from MD tax on wages; file Form MW507 with employer.
Do I have to file taxes in both Washington, DC and Maryland?
Usually you file only one state return (a resident return in Washington, DC), though some states still require a nonresident return to get a refund of any wrongly withheld tax.
Will I be taxed twice?
No. Under the reciprocity agreement only Washington, DC taxes your wages: about $5,532 on $100,000.
Related
- Live in Maryland, work in Washington, DC
- Moving from Washington, DC to Maryland
- Moving from Maryland to Washington, DC
- Live in Washington, DC, work in Virginia
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.