Live in Washington, DC, work in Maryland
Reciprocity agreement: covered employee wages are subject to state income tax only in your home state. Give your employer the work state's exemption form and arrange home-state withholding. County and city taxes require a separate check.
Official tax guidance for both states
Check withholding, filing requirements and current forms with each state's tax agency.
- Washington, DC: Office of Tax and 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 Washington, DC, 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.
Wage-exemption conditions: 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.
State income tax: $5,532 a year
Modeled annual state income tax for living in Washington, DC and working in Maryland: about $5,532 on $100,000 of wages.
Reciprocity agreement: covered employee wages are subject to state income tax only in your home state. Give your employer the work state's exemption form and arrange home-state withholding. County and city taxes require a separate check.
Conditions for this pair: 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.
Tax guide and official sources: live in Washington, DC, work in Maryland
Official agency starting points: Washington, DC 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 | Washington, DC home state |
|---|---|---|
| Tax before the modeled other-state credit | $0 | $5,532 |
| Modeled other-state credit subtracted | $0 | $0 |
| Tax after that credit | $0 | $5,532 |
Total: $0 + $5,532 = $5,532 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.
No other-state credit is subtracted in this selected scenario. 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 DC | Modeled 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 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.
Frequently asked questions
Do I pay Maryland income tax if I live in Washington, DC?
If you qualify for the wage-reciprocity exemption, no Maryland state income tax on covered employee wages: under reciprocity Washington, DC taxes them. City and county taxes require a separate check. 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?
Not at the state level on covered wages: under reciprocity Washington, DC taxes them, about $5,532 on $100,000 in this model. The estimate includes resident county tax where modeled; other local taxes or credits are separate.
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.