Live in Maryland, work 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 income tax: $7,283 a year
Living in Maryland and working in Delaware, you'd pay about $7,283 in state income tax on $100,000 of wages.
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 DE | To MD | Total | If you worked in MD |
|---|---|---|---|---|
| $50,000 | $2,098 | $1,260 | $3,358 | $3,358 |
| $75,000 | $3,609 | $1,712 | $5,321 | $5,321 |
| $100,000 | $5,259 | $2,024 | $7,283 | $7,283 |
| $150,000 | $8,559 | $3,004 | $11,563 | $11,563 |
| $250,000 | $15,159 | $5,063 | $20,222 | $20,222 |
Single filer, all wages earned in Delaware, 2026 state tax rules, standard deductions. State income tax includes Maryland's average county income tax. Other local income taxes are not included.
What to do
- Ask your employer to withhold Delaware tax. If Maryland's tax is higher, withhold the difference for Maryland too (or make estimated payments) to avoid an underpayment penalty.
- File the Delaware nonresident return first, then claim the credit for taxes paid to another state on your Maryland resident return.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Working from home for a Delaware employer
Delaware has a "convenience of the employer" rule. Full rule: days worked at home for convenience by nonresidents of DE-based employers count as DE workdays.
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 Delaware income tax if I live in Maryland?
Yes. Delaware taxes wages earned there by nonresidents. On $100,000 that's about $5,259.
Do I have to file taxes in both Maryland and Delaware?
Usually yes: a nonresident return in Delaware and a resident return in Maryland, where you claim a credit for the tax paid to Delaware. File the Delaware return first.
Will I be taxed twice?
Not on the same state-level wages. Maryland credits the tax you pay Delaware, so your total is about $7,283 on $100,000, compared with $7,283 if you also worked in Maryland. Local city or county taxes may still apply.
Related
- Live in Delaware, work in Maryland
- Moving from Maryland to Delaware
- Moving from Delaware to Maryland
- Live in Maryland, work in Washington, DC
- Live in Maryland, work in Pennsylvania
- Live in Maryland, work in Virginia
- Live in Maryland, work in West Virginia
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.