Retiring in Maryland: how your income is taxed
Maryland is fairly tax-friendly for retirees. On a typical retirement income it ranks #35 of 51 for the lowest state income tax.
Assumptions behind this comparison
The ranking uses a full-year resident, single filer age 67, with $30,000 Social Security, $20,000 private defined-benefit pension, $20,000 traditional IRA withdrawals under 2026 rules. It models a general private pension and traditional IRA withdrawals. Public or military pension exceptions, early-distribution penalties and itemized deductions require separate checking. Maryland and Indiana estimates include an approximate statewide-average county income tax; other local income taxes are not modeled. A state with no income tax differs from a state that exempts only specified retirement income.
The joint table uses two spouses age 67, with each income category split equally between them. Personal exclusions follow each spouse's own eligible income; some states instead allow a joint cap. The calculator initially assigns household income to you and lets you enter your spouse's actual age and share. Read the source instructions for your pension type.
The rules in Maryland
- Social Security: Maryland does not tax Social Security or Railroad Retirement benefits.
- Pensions: At 65+ (or if totally disabled) you can exclude up to $40,600 for 2026 ($41,200 for 2025) of income from employer retirement plans, minus Social Security and Railroad Retirement benefits received. There is also a senior tax credit of $1,000, or $1,750 for a joint return with both spouses 65+, for federal AGI up to $100,000 single / $150,000 joint. County income tax also applies. Public safety retirees may subtract up to $15,000. Military retirement: up to $12,500 can be subtracted under age 55 and $20,000 at 55+.
- 401(k), 403(b) and IRA withdrawals: 401(k), 403(b) and 457(b) withdrawals from employer plans share the $40,600 pension exclusion at 65 and older. Taxable traditional IRA, rollover IRA, SEP and Keogh withdrawals do not qualify for this exclusion. A Roth IRA also does not qualify for this subtraction, but that does not make a qualified Roth distribution taxable: qualified Roth distributions are excluded from federal income. Roth conversions and nonqualified distributions need a separate check.
- At 65 and older: Each filer 65 or older gets an extra $1,000 exemption, which is not reduced at higher incomes.
Exclusion eligibility and taxability are separate. See IRS guidance on qualified Roth distributions and Maryland's employee-plan pension exclusion. Roth conversions and nonqualified withdrawals are not calculated by this tool.
Calculate your Maryland retirement taxes
State income tax in Maryland: $677 a year
In Maryland, qualifying employer-plan withdrawals can receive the pension exclusion while traditional IRA withdrawals do not. Keep each account in its own field when changing state; the calculator applies the state-specific treatment.
The employer-plan field supports federally taxable private 401(k) / 403(b) retirement distributions owned by someone aged 60 or older. Earlier distributions and Hawaii, Mississippi or Pennsylvania employer-plan scenarios are not calculated; funding or plan retirement eligibility needs a separate check. Enter each amount once; do not include completed rollovers, Roth payments or special public/military plans.
Older shared links did not identify employer-plan withdrawals separately. Pension and IRA amounts have been left unchanged. If an old amount includes 401(k) or 403(b) withdrawals, move that portion into the employer-plan field before comparing states; the tool cannot infer the original account type.
Household totals include taxable private pensions and traditional retirement withdrawals. Other ordinary income means taxable interest and ordinary dividends; capital gains, qualified dividends, tax-exempt interest, wages, Roth distributions and special public or military pension rules need a separate calculation. Disability and survivor eligibility are not assessed by this tool. Age bands represent the listed ages for the full year; midyear eligibility and birth-date exceptions need checking.
Maryland estimate includes county income tax at an approximate statewide-average rate. Your actual county rate may differ; other local income taxes are not modeled.
In Maryland you'd pay about $677 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $64,987 (7.2% total).
Maryland ranks #35 of 51 for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in Maryland
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 traditional IRA withdrawals | $138 | $0 | $0 |
| $30,000 Social Security, $20,000 private defined-benefit pension, $20,000 traditional IRA withdrawals | $677 | $152 | $4,336 |
| $40,000 Social Security, $40,000 private defined-benefit pension, $50,000 traditional IRA withdrawals, $10,000 other income | $7,346 | $1,722 | $19,812 |
Age 67, 2026 rules including the federal senior deduction. For the joint column, income is the household total, both spouses are 67, and each owns 50% of every income category. State estimates apply Maryland's main exclusions and may differ for income-tested credits. The 401(k)/IRA amounts are treated as IRA withdrawals, which don't qualify for Maryland's pension exclusion; withdrawals from employer plans such as a 401(k) or 403(b) do. Enter those in the separate employer-plan field; keep traditional IRA and defined-benefit pension amounts in their own fields when comparing states.
Lower-tax states for the age-67 example
The amounts below use the fixed example above. Comparison links carry the last valid household entered in the calculator, including each spouse's income and age; the destination recalculates that household. Finish correcting invalid entries before using a comparison.
Moving to Maryland in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to Maryland come from (IRS migration data, 2022–2023).
- Virginia to Maryland
- Washington, DC to Maryland
- Pennsylvania to Maryland
- Florida to Maryland
- New York to Maryland
- California to Maryland
Frequently asked questions
Does Maryland tax Social Security?
Not taxed. Maryland does not tax Social Security or Railroad Retirement benefits.
Does Maryland tax pensions?
Partly taxed. At 65+ (or if totally disabled) you can exclude up to $40,600 for 2026 ($41,200 for 2025) of income from employer retirement plans, minus Social Security and Railroad Retirement benefits received. There is also a senior tax credit of $1,000, or $1,750 for a joint return with both spouses 65+, for federal AGI up to $100,000 single / $150,000 joint. County income tax also applies. Public safety retirees may subtract up to $15,000. Military retirement: up to $12,500 can be subtracted under age 55 and $20,000 at 55+.
Does Maryland tax 401(k) and IRA withdrawals?
Partly taxed. 401(k), 403(b) and 457(b) withdrawals from employer plans share the $40,600 pension exclusion at 65 and older. Taxable traditional IRA, rollover IRA, SEP and Keogh withdrawals do not qualify for this exclusion. A Roth IRA also does not qualify for this subtraction, but that does not make a qualified Roth distribution taxable: qualified Roth distributions are excluded from federal income. Roth conversions and nonqualified distributions need a separate check.
Is Maryland a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 private defined-benefit pension, $20,000 traditional IRA withdrawals, Maryland charges about $677 in state income tax, ranking #35 of 51 (lowest tax first).
Related
Sources: services.marylandcomptroller.gov, marylandcomptroller.gov, mgaleg.maryland.gov, irs.gov, news.bloombergtax.com, kiplinger.com. Rules reviewed . Some 2026 amounts were not yet published or sources differed; confirm with the state revenue department.