If you earn a salary of $120,000 in Maryland, you will face a significant, but highly variable, tax bill. Your total tax liability is determined by a combination of federal, state, and local taxes. While federal taxes take the largest bite, the Maryland state and county income taxes together represent a substantial percentage of your gross income.
Here is a breakdown of how the Maryland component is calculated for an income of $120,000 for the 2025 tax year.
Maryland's income tax system has two mandatory parts: a progressive state tax and a flat local county tax.
At the $120,000 income level, your state tax rate will fall into two key progressive brackets, depending on your filing status.
The key takeaway is that the marginal state tax rate on the last dollar of your $120,000 salary is either 5.00% or 4.75%, depending on your filing status.
In addition to the state tax, all Maryland residents pay a local county tax, which is a flat percentage applied to your taxable income. This rate varies significantly across the state, ranging from the low end of 2.25% to a high of 3.30%.
For example, a taxpayer residing in a county with a maximum rate of 3.30% will pay that full percentage on their taxable income.
To find your approximate state and local income tax burden, you must combine the two rates.
Note: Your final effective tax rate (the actual percentage of your total income paid in taxes) will be lower than the marginal rate due to deductions and the lower rates applied to the first dollars of income.
If you want to know exactly how much of your $120,000 is taxed in Maryland — and how to keep more of it — schedule a consultation with Watter CPA today.
