Maryland vs Washington Taxes
Compare the total tax burden between Maryland (2% – 6.5%) and Washington (no income tax). Enter your income to see which state saves you more.
| Tax Component | Maryland | Washington |
|---|---|---|
| Federal Tax | $13,170 | $13,170 |
| State Tax | $4,386 | $0 |
| FICA | $7,650 | $7,650 |
| Total Tax | $25,206 | $20,820 |
| Take-Home | $74,794 | $79,180 |
| Effective Rate | 25.21% | 20.82% |
| Annual Difference | $4,386 more | $4,386 less |
The $4,386 difference is primarily because Maryland has a progressive income tax with rates up to 6.5%, while Washington has no state income tax. At your income level, Maryland's marginal rate is 4.8%.
Why the difference
You'd save $4,386/year ($366/month) in Washington vs Maryland.
Tax structure
Maryland uses progressive brackets up to 6.5%, while Washington has no state income tax.
Effective rate at your income
At $100,000, Washington's effective state rate is 0.0% vs 4.4% in Maryland — a 4.4 percentage point gap.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Tip: If you have significant investment income, note that Washington's capital gains tax may apply to gains above the annual threshold (~$278,000 for 2025), and gains over $1 million above that threshold are taxed at 9.9% rather than 7%. For salary-only earners, Washington remains one of the most tax-efficient states.
Maryland Total Tax
$25,20625.21% effective rate
Washington Total Tax
$20,82020.82% effective rate
Annual Savings
$4,386by living in Washington
Tax at Different Income Levels
| Income | Maryland Total Tax | Washington Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $16,606 | $13,408 | Save $3,199 |
| $100,000 | $25,206 | $20,820 | Save $4,386 |
| $150,000 | $43,251 | $36,209 | Save $7,042 |
| $200,000 | $60,899 | $51,073 | Save $9,826 |
Based on single filer, standard deduction, 2026 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd save $4,386/year ($366/month) in Washington vs Maryland.
Tax structure
Maryland uses progressive brackets up to 6.5%, while Washington has no state income tax.
Effective rate at your income
At $100,000, Washington's effective state rate is 0.0% vs 4.4% in Maryland — a 4.4 percentage point gap.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Tip: If you have significant investment income, note that Washington's capital gains tax may apply to gains above the annual threshold (~$278,000 for 2025), and gains over $1 million above that threshold are taxed at 9.9% rather than 7%. For salary-only earners, Washington remains one of the most tax-efficient states.
Understanding Each State
Maryland
This state uses a progressive income tax system with multiple brackets, similar to the federal system. Only the income within each bracket is taxed at that rate, so your effective state rate is lower than the top bracket. Tax planning strategies include maximizing pre-tax retirement contributions to reduce state-taxable income.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Washington
Washington has no state income tax but imposes a capital gains excise tax (effective 2022, upheld by the state supreme court in 2023): 7% on long-term gains above an inflation-adjusted threshold ($278,000 for 2025), rising to 9.9% on gains over $1 million above that threshold starting with tax year 2025 (ESSB 5813). The state relies on a relatively high sales tax (6.5% state + local, often totalling 10%+). Washington is a major tech hub (Seattle), attracting high earners who benefit from the lack of income tax.
Tip: If you have significant investment income, note that Washington's capital gains tax may apply to gains above the annual threshold (~$278,000 for 2025), and gains over $1 million above that threshold are taxed at 9.9% rather than 7%. For salary-only earners, Washington remains one of the most tax-efficient states.
Key Comparison Points
Income tax structure: Maryland has a progressive income tax (2% – 6.5%), while Washington has no state income tax.
Beyond income tax: State tax comparisons should also consider property tax rates, sales tax, and cost of living. A state with no income tax may have higher property or sales taxes that offset the savings.
SALT deduction cap: Under OBBBA, the 2026 federal SALT cap is $40,400, phasing out above $505,000 MAGI toward a $10,000 floor. This limits the federal tax benefit of living in a high-tax state, so the gross state tax difference remains close to the net difference for most earners — especially high earners inside the phaseout.
Frequently asked questions
Is it cheaper to live in Maryland or Washington?
Based on income tax alone, Washington has a lower tax burden. At $100K income, you'd save $4,386 annually in Washington compared to Maryland. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from Maryland to Washington?
A single filer earning $100,000 would save approximately $4,386 per year in total taxes by living in Washington instead of Maryland. At $150,000 income, the savings change to $7,042 per year.
What is the income tax rate in Maryland?
Maryland has a progressive income tax with rates of 2% – 6.5%.
What is the income tax rate in Washington?
Washington has no state income tax.
Does Washington have income tax?
No, Washington does not levy a state income tax. Residents pay only federal income tax and FICA. However, Washington may have higher property taxes or sales taxes to compensate.