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Maryland Retirement Income Tax Calculator

Maryland exempts Social Security and excludes $40,600 of employee pension at 65+, but IRAs are taxed.

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Maryland resident retirement worksheet

Use the year income is received, not the filing year. Later years use a separately approved assessment until the next return rules are verified.

Prepare positive resident income after OTHER current-year Maryland modifications, pickup contributions and basis, before only the displayed benefits, special retirement subtractions, two-income subtraction, deductions and exemptions. Approve each owner’s actual eligible employee retirement plan and included income. IRA / Roth / rollover IRA / SEP / Keogh and ineligible 457(f) are not ordinary eligible pensions. Standard mode requires no separate-spouse itemizing exception; basic exemptions require approved dependency rights. Part-year / nonresident allocation, negative-income offsets, lump-sum special taxes and final return preparation are separate.

Only a joint return combines living spouse income records and permits the two-income subtraction. Head / qualifying survivor use Schedule II, but no second pension cap or spouse exemption is invented.

After all other approved modifications and basis. Contains every included displayed amount, including only federally taxable Social Security / railroad. Ordinary IRA withdrawals remain taxable here.

Separate from modified Maryland income. Controls exemption reductions, senior-credit ceiling and the strict greater-than-$350,000 capital-gain surtax condition.

Only the federally included amount still present in prepared income. Gross amounts below separately reduce each recipient’s ordinary pension room.

Age 55 changes eligible military / public safety treatment; age 65 enables ordinary pension exclusion, an exemption and potentially the senior credit.

Approve the statutory impairment and required physician documentation. Disability can enable ordinary pension eligibility; it does not itself confer the age-65 senior credit.

A disabled living spouse can enable your pension exclusion even below 65. Relevant even for your separate return; this does not pool spouse pension income or grant a spouse senior credit.

Approved retirement / survivor receipts under Section 10-207(q), after basis. Subtraction is up to $12,500 below age 55 or $20,000 at 55+. Any remaining eligible employee-plan income must be included only in the net plan input below.

Qualified employee-system retirement attributable to approved correctional / law enforcement / fire / rescue / emergency medical service. Age 55+ cap is $16,000 for 2026 under enacted Chapter 686. A 9-1-1 job alone does not qualify: Chapter 877 struck out the proposed public safety expansion.

Prepare eligible Section 401(a), 403 or 457(b) taxable pension after pickup / basis and the special amounts actually subtracted above. Include only qualifying remaining military / public safety plan income, plus other eligible employee pensions. Do not subtract a special retirement amount twice. Traditional / Roth / rollover IRAs, SEP, Keogh and 457(f) do not qualify.

All gross taxable and nontaxable Social Security and railroad Tier I / II / supplemental receipts before Medicare or withholding. Only your own gross amount reduces your $40,600 cap.

Ordinary mode yields zero if age / disability conditions do not qualify. Ranger mode requires all entered net plan income to be eligible ranger employment income, no ordinary eligibility, and has a $15,000 limit as well as gross-benefit-adjusted room. Do not combine both routes for one owner.

Joint only; actual recipient’s age-specific cap. Remaining qualified plan income goes only into the net spouse pension below.

Joint only; independently approved employee-system / occupation / age. 2026 age 55 cap is $16,000.

Joint only; remaining approved eligible employee-system income after special subtractions. No transfer of unused spouse room and no ordinary IRA exclusion.

Joint only; gross taxable plus nontaxable receipts reduce only this owner’s $40,600 room.

Same separate-owner conditions as your route. One spouse may qualify for ordinary treatment while the other uses eligible ranger treatment.

Joint only: separately determine the lower spouse’s Maryland modified income after ALL other owner additions / subtractions, before this subtraction. Model uses min($1,200, this amount). A household total cannot establish two separate earners; known zero is valid.

Approved net long-term capital gain less applicable net short-term loss, after TB58 statutory asset exceptions. Must remain included in Maryland AGI. Retirement-account assets and qualifying primary-residence transactions are excepted; ordinary pension / IRA distributions are not net capital gain. Extra tax activates only when federal AGI exceeds $350,000.

PVW specifies $3,350 single / separate or $6,700 joint / head / qualifying survivor. Itemizing, separate-spouse exceptions, state-income-tax removal and applicable phaseouts require a prepared deduction; do not automatically copy federal deductions.

Current PVW and Section 10-211 phase personal / dependent units using federal AGI. Each owner age 65 and eligible blindness condition adds $1,000 outside this reduction. Special separate-spouse exemption rights, U.S.-obligation adjustment and exceptions use prepared mode.

Joint maximum 2; other statuses maximum 1 in basic mode. Actual Maryland dependency / spouse rights must be approved; qualifying-survivor status does not create a deceased-spouse exemption.

Adds one extra income-tested exemption unit per eligible older dependent, not an unphased taxpayer $1,000 allowance.

Separate from age 65; each independently qualifying condition adds $1,000.

Joint basic mode only; independent of spouse age.

Confirm actual resident jurisdiction. All 24 actual 2026 PVW rates included. Anne Arundel and Frederick select one income/status-dependent flat rate applied to ALL Maryland taxable income. Special nonresident tax / part-year allocation are separate.

Prepare nonrefundable ordering, limits and current certificates. Retired 9-1-1 specialists under Chapter 877 need the issued emergency-management certificate; statewide proration means $700 is not automatic. Do not include senior credit already shown, local credits, refundable amounts or withholding.

Prepare actual local-credit eligibility / allocation. The senior credit and additional capital gain tax apply to STATE only. Known zero resolves a no-local-credit case; blank leaves final local / combined amount unknown.

Maryland · 2026 estimate

Waiting on a figure

Maryland 2026 state estimate before credits —
Ordinary state schedule estimate
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State-only eligible net-gain surtax
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Included Social Security / railroad subtraction
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Separate military subtractions
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Separate 2026 public safety subtractions
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Your gross-benefit-adjusted $40,600 room
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Spouse’s own pension room
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Your eligible net-plan exclusion
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Spouse’s eligible net-plan exclusion
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Approved two-income subtraction
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Income after displayed Maryland subtractions
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Displayed Maryland deduction
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Income-tested personal / dependent unit
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Total displayed exemptions
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Nonnegative Maryland taxable income
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Eligible unreduced 2026 senior state credit
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State estimate after senior credit
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Selected resident local rate
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Local estimate before local credits
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State after senior credit plus local estimate
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State after other approved reductions
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Local after approved local reduction
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Resolved state plus local after approved reductions
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Calculation scopeConfirm full-year resident income, plan / recipient eligibility and deduction conditions

Illustrative defaults. Enter approved taxable amounts and confirm eligibility. The result covers the displayed worksheet conditions; a complete return may require other income, adjustments, deductions or credits.

Tax year 2026: actual PVW estimate schedules, $40,600 owner pension cap and enacted Chapter 686 $16,000 public safety subtraction. March / September 2026 FY2027 forecasts do not trigger the reduced senior credit. Chapter 877 requires an actual 9-1-1 specialist credit certificate; its discarded subtraction proposal is not applied. Whole-dollar inputs and cent estimates are separate from the recommended final whole-dollar estimate / return tables. Reviewed October 2, 2026.

Reviewed October 2, 2026. Maryland retirement tax: 2026 pensions, senior credits and county income tax

What Maryland taxes in retirement

Partly taxed: limits by age, plan, owner or income apply. Military retirement is covered in the guide. How these labels work.

Maryland retirement tax: 2026 pensions, senior credits and county income tax

Estimate Maryland retirement income tax for 2026: $40,600 owner pension caps, separate benefit offsets, state senior credits and all 24 county / city rates.

Maryland treats an eligible employee pension differently from an IRA withdrawal. The 2026 agency pension notice gives a maximum ordinary exclusion of $40,600 per eligible recipient, down from $41,200 in 2025. Your gross Social Security and railroad receipts reduce your own room; only your eligible taxable employee-plan income can use what remains. A spouse’s unused allowance cannot shelter your pension. Separately, federally included Social Security and railroad income is subtracted from prepared Maryland income. Do not confuse a gross-benefit offset with the taxable-benefit subtraction or remove an amount already excluded from the starting income.

Section 10-209 requires actual plan and recipient qualifications. Ordinary pension treatment applies at age 65, with approved total disability, or when an actual spouse is totally disabled. A spouse turning 65 does not itself qualify a younger recipient. Eligible employee systems use Sections 401(a), 403 or 457(b); ordinary traditional, Roth and rollover IRAs, SEP accounts and ineligible 457(f) arrangements do not meet that definition. Prepare basis and Maryland pickup-contribution adjustments first. Disability documentation and survivor / plan rights need individual review. The full-year worksheet does not allocate a move into or out of Maryland.

A retired forest, park or wildlife ranger aged 55–64 can have a separate pension route. It requires qualified government ranger employment and eligible plan income, with a $15,000 ceiling and the recipient’s gross-benefit-adjusted room. A person eligible for ordinary pension treatment uses that route instead; do not combine the two for one owner. The spouses may have different routes. Military and public safety amounts already subtracted cannot enter the pension exclusion again. The net-plan fields therefore require the eligible income remaining AFTER those actual special subtractions, including any qualifying unsheltered balance.

Qualified military retirement has a separate owner subtraction: up to $12,500 below age 55 or $20,000 at 55 and above. Eligible survivor receipts still require approval of statutory rights and recipient age. Enacted Chapter 686 supplies a different public safety allowance: $16,000 for tax year 2026 for qualifying recipients aged at least 55. It rises in later years, so neither the continuing $15,000 guidance nor a proposed immediate $20,000 allowance establishes this year’s amount. Approve occupation, government employment and employee-system income before entering public safety receipts. The worksheet applies each living joint filer’s own special allowances.

For retired 9-1-1 specialists, read the final Chapter 877 rather than its introduced title. The proposed expansion of the public safety subtraction was struck out. The enacted 2026–2028 provision requires a credit certificate from emergency management, with a nominal 4.75% calculation on the first $15,000 of qualifying retirement, capped at $700. A statewide certificate limit and possible proration mean the cap is not automatically an approved credit. Enter only the independently approved state reduction after current certificate and ordering review. Job description alone does not create a public safety pension subtraction in this worksheet.

The actual 2026 payment-voucher worksheet provides the ordinary schedules and $3,350 single / separate or $6,700 joint / head / qualifying-survivor standard deduction. Maryland itemizing needs its own adjustments, including applicable phaseouts and state-income-tax removal. Personal and dependent exemption units fall as actual federal AGI crosses the published status thresholds. Section 10-211 separately permits $1,000 for age 65 and $1,000 for qualifying blindness; those owner additions are outside the personal-unit reduction. An eligible dependent aged 65 instead receives another income-tested unit. Prepared mode covers special exemption rights and adjustments.

The senior credit reduces state tax rather than county tax. Actual year-end age and federal AGI control eligibility, with $1,000 for eligible single / separate filers within $100,000 and $1,750 for eligible head / qualifying-survivor filers within $150,000. Joint returns within $150,000 get $1,750 with two eligible seniors or $1,000 with one. Section 10-754 contains a revenue forecast trigger, so an old credit summary is insufficient. The March 2026 FY2027 General Fund estimate was $27.028826 billion and September’s was $27.441220 billion: approximately 1.526% higher, rather than more than 3.75% lower. The reduced-credit trigger is therefore absent for 2026. Unused senior credit does not create a refund or carryforward.

Select your actual resident jurisdiction. Maryland’s 2026 PVW lists 23 counties and Baltimore City; Anne Arundel and Frederick select an income- and filing-status-dependent rate applied to all taxable income. They are not marginal county bands. Crossing a threshold can therefore increase tax on the whole base. Montgomery and Baltimore City use 3.20%; Worcester uses 2.25%; Dorchester and Kent use 3.30%. The selected county result remains separate from the state estimate. An unresolved county leaves the combined amount unknown while the resolved state calculation stays visible.

A joint two-income subtraction needs separately prepared lower-spouse modified Maryland income after all other owner modifications; it is limited to $1,200. A household total cannot prove two qualifying earners. Separately, federal AGI above $350,000 can activate the extra 2% state tax on approved net capital gain still included in Maryland AGI. TB58 excepts qualifying retirement-account assets and specified residence transactions, among others; an ordinary pension payout is not net capital gain. Gains classification, other current modifications, credit ordering and special taxes remain prepared inputs. Whole-dollar inputs generate cent estimates; reconcile the recommended estimate rounding and final return tables separately from withholding and payments.

Prepare these Maryland records

Official Maryland source. Actual 2026 PVW, current agency pension-cap notice, Sections 10-207 / 10-209 / 10-211 / 10-754, enacted Chapters 686 and 877, and March / September 2026 Board of Revenue Estimates reports; independently checked October 2, 2026. Final resident return instructions remain a separate reconciliation.

Calculate the federal portion separately

Use the federal retirement-tax worksheet to prepare federally included benefits and ordinary income. Its federal deduction and rates do not replace the Maryland rules above.

Compare Maryland with nearby states

Pennsylvania, Delaware, Virginia, West Virginia and District of Columbia border Maryland. Run each one’s worksheet with the same household figures before deciding where a move would leave you.

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Updated / verified · Retirement Income Tax Calculator Editorial Team