State tax docs / States / Maryland
Maryland state income tax: engine rules, 2026
How the QuantCalc engine computes Maryland tax for tax year 2026, rule by rule, with the official source for each rule. Verification status: Statute and instructions cited (what this means).
On this page: How the tax is computed · Rate schedule · Deductions, exemptions and credits · Age 65+ subtractions and credits · Social Security · IRA, 401(k) and private pensions · Public pensions · Military retirement pay · Roth conversions · Capital gains · Local income tax · Worked examples · Not calculated ·
Verification. Machine-readable: this state's entry in the
engine config and the provenance file
(key MD).
How the tax is computed
Every step the engine takes for Maryland, in the order it takes them. Steps marked with a filing status or household type apply only there. Each step links the section below that carries Maryland's figures and the official sources for it; the calculation order page describes every step for all jurisdictions.
What each filing status gets, read back from the engine for a household with $1 of income (so below every phase-out and income test):
| Single | Married filing jointly | Married filing separately | Head of household | |
|---|---|---|---|---|
| Rate schedule used | single schedule | joint schedule | single schedule | head-of-household schedule |
| Top rate | 6.5% from $1,000,000 | 6.5% from $1,200,000 | 6.5% from $1,000,000 | 6.5% from $1,200,000 |
| Standard deduction, under 65 | $3,400 | $6,700 | $3,400 | $6,700 |
| Standard deduction at 70 (joint: both 70) | $3,400 | $6,700 | $3,400 | $6,700 |
| Personal exemption | $3,200 | $6,400 | $3,200 | $3,200 |
| Age subtractions at 70 (joint: both 70) | $1,000 | $2,000 | $1,000 | $1,000 |
- Per-person mode joint returns with the spouse's age given On a joint return with the spouse's age given, every age test the state applies per taxpayer is evaluated for each spouse at their own age. Without it one household age applies to both.
engine step (compute_state_tax_detail). Engine convention, no external source: The engine cannot know the second spouse's age unless told. - Rate schedule and standard deduction by filing status Single uses the single schedule and deduction; married filing jointly the joint ones. Head of household and married filing separately follow the two steps below.
Maryland's values · engine step (select_brackets). Sources (Rate schedule): Tax-General § 10-105 (State income tax rates) (checked 2026-09-27); Maryland Withholding Tax Facts, January 2026 - December 2026 (COM RAD 098, rev. 12/25) (checked 2026-09-27); Withholding guide (checked 2026-09-27); StatuteText (checked 2026-09-27) - Married filing separately Where the state publishes its own separate schedule, that one (with half the joint deduction unless a separate deduction is set). Where one schedule applies to every status, that schedule unscaled with the single deduction. Otherwise the joint schedule with every threshold and the deduction halved (computed as the joint tax on twice the income, halved).
Maryland's values · engine step (select_brackets). Sources (Rate schedule): Tax-General § 10-105 (State income tax rates) (checked 2026-09-27); Maryland Withholding Tax Facts, January 2026 - December 2026 (COM RAD 098, rev. 12/25) (checked 2026-09-27); Withholding guide (checked 2026-09-27); StatuteText (checked 2026-09-27) - Head of household The state's head-of-household schedule where it has one, else the single schedule; the head-of-household deduction where set, else the single deduction.
Maryland's values · engine step (select_brackets). Sources (Rate schedule): Tax-General § 10-105 (State income tax rates) (checked 2026-09-27); Maryland Withholding Tax Facts, January 2026 - December 2026 (COM RAD 098, rev. 12/25) (checked 2026-09-27); Withholding guide (checked 2026-09-27); StatuteText (checked 2026-09-27) - The income total every income test uses Other ordinary income + retirement distributions (before any exclusion) + conversion + federally taxable Social Security + long-term gains. It stands in for federal adjusted gross income in every threshold, cliff and phase-out below; state subtractions do not reduce it.
engine step (compute_state_tax_detail). Engine convention, no external source: The inputs are the federal AGI components, so their sum is federal AGI for these income types. - Attributing income to each spouse joint returns with each spouse's own amounts given With a caller's split (the API's
spouseobject), each spouse's own distributions, pension, public pension, conversion, wages and military pay; spouse 2's shares are clamped into the household totals and spouse 1 gets the rest. Without a split, in per-person mode, every item is divided 50/50. Social Security, other ordinary income and gains are always divided 50/50 where a rule needs a per-person amount. The split is used only where a state's rule is per taxpayer; household totals stay authoritative for the base and the income tests.
engine step (compute_state_tax_detail). Engine convention, no external source: Equal attribution is the neutral split when the owner of a dollar is not known. - Keeping the per-spouse shares inside the household joint returns with each spouse's own amounts given After the public-pension and employer-pension carve-outs, if the two spouses' remaining shares add up to more than the household's exclusion-eligible distributions (an inconsistent split), spouse 1's share is reduced so they do not.
engine step (compute_state_tax_detail). Engine convention, no external source: Input normalisation. - Military retirement pay The state's military rule runs first, on military pay alone, per taxpayer: each spouse's own pay at their own age when attributed, otherwise half each at the household age on a joint return. Exempt dollars leave the base; the rest become pension dollars for the general retirement rules.
Maryland's values · engine step (compute_state_tax_detail). Sources (Military retirement pay): Tb 51 apr 10 2025 (checked 2026-09-27); Pension Exclusion Worksheet (checked 2026-09-27) - One taxpayer's military exemption Exempt: all of it (below the age split, up to the younger cap). Capped: up to the cap for the age tier, plus the earned-income bonus below the age split when the taxpayer's own wages exceed the threshold, less the taxpayer's own Social Security where the rule says so. Percentage: the percentage (below the age split, up to the younger cap). Then the income limit: above it the exemption is lost, or phased out over the range where one is set.
Maryland's values · engine step (military_exempt_one). Sources (Military retirement pay): Tb 51 apr 10 2025 (checked 2026-09-27); Pension Exclusion Worksheet (checked 2026-09-27) - Social Security exempt None of the federally taxable benefit enters the base.
Maryland's values · engine step (ss_amount_in_state_base). Sources (Social Security): Tax-General § 10-207 (Subtractions from federal adjusted gross income) (checked 2026-09-27) - Retirement exclusion per spouse (both ages known) joint returns with the spouse's age given Full-exclusion states exclude each qualifying spouse's own dollars. Capped states give each spouse the single cap for their own age against their own eligible dollars (pension dollars only where the exclusion is pension-only; employer dollars only below the IRA age), less their military exclusion and half of any Social Security offset. Per-return states (and the pooled-if-both-qualify rule when both qualify) apply the joint cap to the couple's pooled eligible dollars when either spouse qualifies. The income tests then apply once to the summed deduction.
Maryland's values · engine step (compute_state_tax_detail). Sources (IRA, 401(k) and private pensions): Tax Guidance - Maryland Pension Exclusion (KB0010012) (checked 2026-09-27); Tax-General § 10-209 (Pension exclusion) (checked 2026-09-27) - Pension-only exclusion Only pension and annuity dollars draw the capped exclusion; IRA dollars and conversions are taxed in full.
Maryland's values · engine step (compute_state_tax_detail). Sources (IRA, 401(k) and private pensions): Tax Guidance - Maryland Pension Exclusion (KB0010012) (checked 2026-09-27); Tax-General § 10-209 (Pension exclusion) (checked 2026-09-27) - Cap by age tier The full cap at or above the exclusion age, the lower cap at or above the partial age, otherwise none. Joint returns use the joint cap; every other status the single cap.
Maryland's values · engine step (retirement_distributions_in_state_base). Sources (IRA, 401(k) and private pensions): Tax Guidance - Maryland Pension Exclusion (KB0010012) (checked 2026-09-27); Tax-General § 10-209 (Pension exclusion) (checked 2026-09-27) - Cap reduced by Social Security The cap is reduced dollar for dollar by Social Security received: gross benefits when supplied, otherwise the federally taxable amount.
Maryland's values · engine step (retirement_distributions_in_state_base). Sources (IRA, 401(k) and private pensions): Tax Guidance - Maryland Pension Exclusion (KB0010012) (checked 2026-09-27); Tax-General § 10-209 (Pension exclusion) (checked 2026-09-27) - The capped deduction Deduction = the smaller of the eligible distributions and the cap, then reduced by the income limit above; the rest of the distributions stays in the base.
Maryland's values · engine step (retirement_distributions_in_state_base). Sources (IRA, 401(k) and private pensions): Tax Guidance - Maryland Pension Exclusion (KB0010012) (checked 2026-09-27); Tax-General § 10-209 (Pension exclusion) (checked 2026-09-27) - One taxpayer's cap joint returns with the spouse's age given For per-spouse calculations, each spouse's cap is the single-column cap for their age tier.
Maryland's values · engine step (per_taxpayer_cap_single). Sources (IRA, 401(k) and private pensions): Tax Guidance - Maryland Pension Exclusion (KB0010012) (checked 2026-09-27); Tax-General § 10-209 (Pension exclusion) (checked 2026-09-27) - Long-term gains in the base Where gains are taxed as ordinary income: net long-term gain less the flat exclusion (never below zero), times the inclusion share. Elsewhere none enters.
Maryland's values · engine step (compute_state_tax_detail). Sources (Capital gains): Tax-General § 10-105 (State income tax rates) (checked 2026-09-27); Maryland Tax Alert: Changes ... from the 2025 Legislative Session (rev. Dec 22, 2025) (checked 2026-09-27) - Exemption set by income The amount per exemption is the first tier whose income limit the income total does not exceed (joint limits for joint returns, and for head of household where set), else the amount above the tiers; two exemptions on a joint return, one otherwise. It replaces the flat exemption.
Maryland's values · engine step (compute_state_tax_detail). Sources (Deductions, exemptions and credits): Tax-General § 10-217 (Standard deduction) (checked 2026-09-27); Maryland Employer Withholding Guide 2026 (checked 2026-09-27); Maryland Tax Alert: Changes to Standard and Itemized Deductions and to State and Local Income Tax Rates from the 2025 Legislative Session (rev. Dec 22, 2025) (checked 2026-09-27); Tax-General § 10-211 (Exemptions) (checked 2026-09-27); StatuteText (checked 2026-09-27); Mw507 (checked 2026-09-27) - Age subtraction At or above the age: the single amount, or the joint amount on a joint return (both spouses at the household age). In per-person mode, half the joint amount (or the single amount) per qualifying spouse. Plus the low-income amount below the income test; less the military exclusion where the statute says so; limited to the spouse's own income where the statute says so.
Maryland's values · engine step (compute_state_tax_detail). Sources (Age 65+ subtractions and credits): StatuteText (checked 2026-09-27); Mw507 (checked 2026-09-27) - State taxable income Other ordinary income + Social Security, retirement income, conversion and gains left in the base − standard deduction − personal exemption − age subtractions.
engine step (compute_state_tax_detail). Engine convention, no external source: The order of subtraction follows the state forms; each amount is sourced at its own step. - No tax at or below zero State taxable income at or below zero returns a tax of 0 (credits are not refundable and nothing below applies).
engine step (compute_state_tax_detail). Engine convention, no external source: Every credit the engine carries is nonrefundable, so nothing below can make a zero tax negative; each credit is sourced at its own step. - Separate-return scaling married filing separately For the halved-joint rule, taxable income is doubled before the schedule and the result halved.
Maryland's values · engine step (compute_state_tax_detail). Sources (Rate schedule): Tax-General § 10-105 (State income tax rates) (checked 2026-09-27); Maryland Withholding Tax Facts, January 2026 - December 2026 (COM RAD 098, rev. 12/25) (checked 2026-09-27); Withholding guide (checked 2026-09-27); StatuteText (checked 2026-09-27) - The rate schedule Each bracket's rate on the part of taxable income inside it, summed. No rounding: the result is carried in full precision.
Maryland's values · engine step (apply_state_brackets). Sources (Rate schedule): Tax-General § 10-105 (State income tax rates) (checked 2026-09-27); Maryland Withholding Tax Facts, January 2026 - December 2026 (COM RAD 098, rev. 12/25) (checked 2026-09-27); Withholding guide (checked 2026-09-27); StatuteText (checked 2026-09-27) - Credits cannot make the tax negative The credits are subtracted and the result floored at zero.
engine step (compute_state_tax_detail). Engine convention, no external source: Every credit the engine carries is nonrefundable; each credit is sourced at its own step. - County income tax The county rate times state taxable income, after credits and not reduced by them.
Maryland's values · engine step (compute_state_tax_detail). Sources (Local income tax): Maryland Withholding Tax Facts, January 2026 - December 2026 (COM RAD 098, rev. 12/25) (checked 2026-09-27); Tax-General § 10-106 (County income tax rate) (checked 2026-09-27) - Capital-gains surcharge When the income total exceeds the threshold, the rate times net long-term gain.
Maryland's values · engine step (compute_state_tax_detail). Sources (Capital gains): Tax-General § 10-105 (State income tax rates) (checked 2026-09-27); Maryland Tax Alert: Changes ... from the 2025 Legislative Session (rev. Dec 22, 2025) (checked 2026-09-27)
Rate schedule
Single
| Taxable income from | to | Rate |
|---|---|---|
| $0 | $1,000 | 2% |
| $1,000 | $2,000 | 3% |
| $2,000 | $3,000 | 4% |
| $3,000 | $100,000 | 4.75% |
| $100,000 | $125,000 | 5% |
| $125,000 | $150,000 | 5.25% |
| $150,000 | $250,000 | 5.5% |
| $250,000 | $500,000 | 5.75% |
| $500,000 | $1,000,000 | 6.25% |
| $1,000,000 | and up | 6.5% |
Married filing jointly
| Taxable income from | to | Rate |
|---|---|---|
| $0 | $1,000 | 2% |
| $1,000 | $2,000 | 3% |
| $2,000 | $3,000 | 4% |
| $3,000 | $150,000 | 4.75% |
| $150,000 | $175,000 | 5% |
| $175,000 | $225,000 | 5.25% |
| $225,000 | $300,000 | 5.5% |
| $300,000 | $600,000 | 5.75% |
| $600,000 | $1,200,000 | 6.25% |
| $1,200,000 | and up | 6.5% |
Head of household
| Taxable income from | to | Rate |
|---|---|---|
| $0 | $1,000 | 2% |
| $1,000 | $2,000 | 3% |
| $2,000 | $3,000 | 4% |
| $3,000 | $150,000 | 4.75% |
| $150,000 | $175,000 | 5% |
| $175,000 | $225,000 | 5.25% |
| $225,000 | $300,000 | 5.5% |
| $300,000 | $600,000 | 5.75% |
| $600,000 | $1,200,000 | 6.25% |
| $1,200,000 | and up | 6.5% |
Married filing separately: one schedule applies to every filing status, so the engine uses it unscaled with the single deduction.
- Tax-General § 10-105 (State income tax rates), Maryland General Assembly (Annotated Code of Maryland). Maryland's ten-bracket individual rate schedule (2% to 6.50%) with separate thresholds for single/MFS filers and for joint/HOH/surviving-spouse filers, plus an additional 2% tax on net capital gain when federal AGI exceeds $350,000. Checked 2026-09-27.
- Maryland Withholding Tax Facts, January 2026 - December 2026 (COM RAD 098, rev. 12/25), Comptroller of Maryland. The Comptroller's 2026 rate schedules I (single/MFS) and II (joint/HOH/surviving spouse) match the statutory brackets, topping out at 6.50% over $1,000,000 / $1,200,000. Checked 2026-09-27.
- Withholding guide, Comptroller of Maryland. Comptroller of Maryland: "For the purpose of the percentage method calculation the Standard Deduction is $3,400" Checked 2026-09-27.
- StatuteText, mgaleg.maryland.gov. mgaleg.maryland.gov: "For spouses on a joint return, the standard deduction is $6,700" (and 1 more quoted passage) Checked 2026-09-27.
Deductions, exemptions and credits
- Standard deduction (or the exemption the engine carries in its place): $3,400 single, $6,700 married filing jointly, $6,700 head of household.
- Personal exemption per exemption (one single, two joint), set by income: $3,200 up to $100,000 of income (up to $150,000 joint and head of household); $1,600 up to $125,000 of income (up to $175,000 joint and head of household); $800 up to $150,000 of income (up to $200,000 joint and head of household); $0 above.
Source review notes (what the sources do not state outright, or what the engine does not carry):
- Indexed 2026 joint/HOH standard deduction (statute indexes it; only the single $3,400 appears in the 2026 withholding guide).
- Tax-General § 10-217 (Standard deduction), Maryland General Assembly (Annotated Code of Maryland). The Maryland standard deduction base amounts are $3,350 (single/MFS) and $6,700 (joint/HOH/surviving spouse), indexed by the federal cost-of-living adjustment for tax years beginning after December 31, 2025. Checked 2026-09-27.
- Maryland Employer Withholding Guide 2026, Comptroller of Maryland. For 2026 the Comptroller applies an indexed standard deduction of $3,400 in its withholding percentage method. Checked 2026-09-27.
- Maryland Tax Alert: Changes to Standard and Itemized Deductions and to State and Local Income Tax Rates from the 2025 Legislative Session (rev. Dec 22, 2025), Comptroller of Maryland. The 2025 Budget Reconciliation and Financing Act replaced the income-based standard deduction with flat amounts of $3,350 / $6,700 for tax year 2025, indexed to cost-of-living thereafter. Checked 2026-09-27.
- Tax-General § 10-211 (Exemptions), Maryland General Assembly (Annotated Code of Maryland). Maryland allows a $3,200 personal exemption per exemption, reduced for federal AGI over $100,000 (single); the engine does not model this exemption. Checked 2026-09-27.
- StatuteText, mgaleg.maryland.gov. mgaleg.maryland.gov: "For spouses filing a joint return or for a surviving spouse or head of household as defined in § 2 of the Internal Revenue Code, the State income tax rate is" (and 1 more quoted passage) Checked 2026-09-27.
- Mw507, Comptroller of Maryland. Comptroller of Maryland: "$150,000 $175,000 $0 $1,600 $175,000 $200,000 $0 $800 In excess of $200,000 $0 $0" Checked 2026-09-27.
Age 65+ subtractions and credits
- At age 65 or older: $1,000 is subtracted from the base ($2,000 for a married couple filing jointly when both qualify), against any income. With the spouse's age given, each spouse qualifies on their own age.
- StatuteText, mgaleg.maryland.gov. mgaleg.maryland.gov: "$0 if federal adjusted gross income for the taxable year is greater than $150,000" (and 2 more quoted passages) Checked 2026-09-27.
- Mw507, Comptroller of Maryland. Comptroller of Maryland: "$150,000 $175,000 $0 $1,600 $175,000 $200,000 $0 $800 In excess of $200,000 $0 $0" Checked 2026-09-27.
IRA, 401(k) and private pensions
- Pension and annuity distributions (IRA distributions do not qualify and are taxed in full): up to $40,600 excluded per taxpayer ($81,200 on a joint return) at age 65 or older.
- The cap is reduced dollar for dollar by Social Security received (gross benefits when supplied, otherwise the federally taxable amount).
- Joint returns: the cap is per taxpayer. With the spouse's age given (couples), each spouse's own dollars are tested against that spouse's own age and cap; without it one household age applies and the $81,200 joint cap covers pooled income.
Source review notes (what the sources do not state outright, or what the engine does not carry):
- MFJ cap $81,200 (= 2 x $40,600, each qualifying spouse on a separate worksheet column) is not stated as a dollar figure on any fetched page.
- Tax Guidance - Maryland Pension Exclusion (KB0010012), Comptroller of Maryland. For 2026 a taxpayer 65+ (or totally disabled) may exclude up to $40,600 of pension income from 401(a)/401(k)/403(b)/457(b) employee retirement systems, reduced by all Social Security and Railroad Retirement benefits received; IRAs, Roth IRAs, SEPs and Keoghs do not qualify. Checked 2026-09-27.
- Tax-General § 10-209 (Pension exclusion), Maryland General Assembly (Annotated Code of Maryland). A resident at least 65 (or totally disabled) subtracts the lesser of employee-retirement-system pension income or the Comptroller-set maximum Social Security benefit, less Social Security and Railroad Retirement benefits received. Checked 2026-09-27.
Public pensions
No separate treatment: public pensions follow the rules for other retirement income above.
Source review notes (what the sources do not state outright, or what the engine does not carry):
- Separate Maryland subtractions for public-safety and forest/park/wildlife ranger pensions are not modeled (military pay has its own rule).
- Tax-General § 10-209 (Pension exclusion), Maryland General Assembly (Annotated Code of Maryland). Public-employer pensions are 'employee retirement system' income and share the same age-65 pension exclusion as private employer plans; they receive no separate full exemption (the engine treats them identically). Checked 2026-09-27.
Military retirement pay
- Military retirement pay is exempt from age 55, up to $20,000; below that age up to $12,500 per taxpayer.
- Military pay the military rule does not exempt is pension income under the general retirement rules.
- Rules are applied per taxpayer at that person's own age when the spouse's age is given. API value:
rules.militaryRetirement.treatment: "capped_exclusion".
- Tb 51 apr 10 2025, Comptroller of Maryland. Under 55, up to $12,500 of military retirement income may be subtracted; from 55, up to $20,000. The rest can use the 65+ pension exclusion. Checked 2026-09-27.
- Pension Exclusion Worksheet, Comptroller of Maryland. Under 55, up to $12,500 of military retirement income may be subtracted; from 55, up to $20,000. The rest can use the 65+ pension exclusion. Checked 2026-09-27.
Roth conversions
A conversion is taxed as ordinary income in full. It does not draw any retirement-income exclusion.
- Tax-General § 10-203 (Maryland adjusted gross income), Maryland General Assembly (Annotated Code of Maryland). Maryland AGI starts from federal AGI, so a traditional-to-Roth conversion included in federal AGI is taxed by Maryland as ordinary income. Checked 2026-09-27.
- Tax Guidance - Maryland Pension Exclusion (KB0010012), Comptroller of Maryland. IRA and Roth IRA amounts do not qualify for the pension exclusion, so a conversion cannot draw on it. Checked 2026-09-27.
Capital gains
- Net long-term gain is taxed as ordinary income.
- An extra 2% of net capital gain when income exceeds $350,000.
- Short-term gains are ordinary income.
Source review notes (what the sources do not state outright, or what the engine does not carry):
- Exempt-asset carve-outs from the 2% tax (e.g. principal residence) are not modeled.
- Tax-General § 10-105 (State income tax rates), Maryland General Assembly (Annotated Code of Maryland). Maryland taxes net capital gain as part of Maryland taxable income at the regular rates, and adds a 2% tax on net capital gain included in Maryland AGI for individuals with federal AGI over $350,000 (certain assets, e.g. a principal residence, excepted). Checked 2026-09-27.
- Maryland Tax Alert: Changes ... from the 2025 Legislative Session (rev. Dec 22, 2025), Comptroller of Maryland. The 2025 Act imposes an additional 2 percent tax on net capital gains for individuals with federal AGI over $350,000, for tax years after 2024. Checked 2026-09-27.
Local income tax
A local (county) income tax is added on the same taxable income the state rate applies to. The default rate is
3.12%, the engine's population-weighted average of the official county rates. The API applies this default and reports it
in rules.localTax; the planner accepts a specific county rate (localTaxRate, 0 to 5%).
Source review notes (what the sources do not state outright, or what the engine does not carry):
- The engine default 3.12% (config.local_tax_rate 0.0312) is QuantCalc's population-weighted mean of the official county rates; no official source publishes an average rate.
- Maryland Withholding Tax Facts, January 2026 - December 2026 (COM RAD 098, rev. 12/25), Comptroller of Maryland. Every Maryland county and Baltimore City levies a local income tax on Maryland taxable income; 2026 rates range from 2.25% (Worcester) to 3.30%, with most large jurisdictions at 3.20% and Anne Arundel/Frederick bracketed. Checked 2026-09-27.
- Tax-General § 10-106 (County income tax rate), Maryland General Assembly (Annotated Code of Maryland). Each county sets a local income tax of at least 2.25% and not more than 3.30% of Maryland taxable income. Checked 2026-09-27.
Worked examples
Computed by the engine for the fixed households below (the same ones for every state, so states compare directly). Federal tax is not supplied, so a federal-tax deduction is not taken; the income tests use the sum of the components as income.
| Household (engine inputs) | State tax |
|---|---|
| Single, 67: $30,000 private pension, $20,000 IRA, $10,000 interest, $24,000 Social Security ($17,000 federally taxable), $5,000 long-term gain | $3,158.46 |
| Married filing jointly, 70: $40,000 public pension, $40,000 IRA, $20,000 interest, $40,000 Social Security ($34,000 federally taxable), $10,000 long-term gain | $4,268.13 |
| Single, 60: $60,000 other ordinary income and a $50,000 Roth conversion | $8,223.50 |
| Married filing jointly, 66: $30,000 IRA, a $40,000 Roth conversion, $30,000 Social Security ($25,500 federally taxable) | $4,268.13 |
| Single, 58: $36,000 military retirement pay and $30,000 wages | $3,048.28 |
| Married filing jointly, ages 67 and 61: $50,000 IRA, $10,000 interest, $30,000 Social Security ($25,500 federally taxable), each spouse's age given | $3,559.83 |
Line by line
The intermediate lines the engine records while it computes each example (its detail record, printed as it comes out; lines that are zero are left out). The engine's documentation build checks that the lines add up to the taxable income and the tax, for every state, filing status and a grid of households. Each line links the engine step that produces it.
Single, 67: $30,000 private pension, $20,000 IRA, $10,000 interest, $24,000 Social Security ($17,000 federally taxable), $5,000 long-term gain: $3,158.46
| Line | Amount |
|---|---|
| Income total used by the income tests | $82,000 |
| Retirement income and conversions excluded (not in the base) | $16,600 |
| + Other ordinary income in the base | $10,000 |
| + Retirement income in the base | $33,400 |
| + Long-term gain in the base | $5,000 |
| − Standard deduction | $3,400 |
| − Personal exemption | $3,200 |
| − Age subtractions and deductions | $1,000 |
| = State taxable income | $40,800 |
| Tax from the rate schedule | $1,885.50 |
| = Tax before credits | $1,885.50 |
| + County income tax | $1,272.96 |
| = Tax | $3,158.46 |
Married filing jointly, 70: $40,000 public pension, $40,000 IRA, $20,000 interest, $40,000 Social Security ($34,000 federally taxable), $10,000 long-term gain: $4,268.13
| Line | Amount |
|---|---|
| Income total used by the income tests | $144,000 |
| Retirement income and conversions excluded (not in the base) | $40,000 |
| + Other ordinary income in the base | $20,000 |
| + Retirement income in the base | $40,000 |
| + Long-term gain in the base | $10,000 |
| − Standard deduction | $6,700 |
| − Personal exemption | $6,400 |
| − Age subtractions and deductions | $2,000 |
| = State taxable income | $54,900 |
| Tax from the rate schedule | $2,555.25 |
| = Tax before credits | $2,555.25 |
| + County income tax | $1,712.88 |
| = Tax | $4,268.13 |
Single, 60: $60,000 other ordinary income and a $50,000 Roth conversion: $8,223.50
| Line | Amount |
|---|---|
| Income total used by the income tests | $110,000 |
| + Other ordinary income in the base | $60,000 |
| + Roth conversion in the base | $50,000 |
| − Standard deduction | $3,400 |
| − Personal exemption | $1,600 |
| = State taxable income | $105,000 |
| Tax from the rate schedule | $4,947.50 |
| = Tax before credits | $4,947.50 |
| + County income tax | $3,276 |
| = Tax | $8,223.50 |
Married filing jointly, 66: $30,000 IRA, a $40,000 Roth conversion, $30,000 Social Security ($25,500 federally taxable): $4,268.13
| Line | Amount |
|---|---|
| Income total used by the income tests | $95,500 |
| + Retirement income in the base | $30,000 |
| + Roth conversion in the base | $40,000 |
| − Standard deduction | $6,700 |
| − Personal exemption | $6,400 |
| − Age subtractions and deductions | $2,000 |
| = State taxable income | $54,900 |
| Tax from the rate schedule | $2,555.25 |
| = Tax before credits | $2,555.25 |
| + County income tax | $1,712.88 |
| = Tax | $4,268.13 |
Single, 58: $36,000 military retirement pay and $30,000 wages: $3,048.28
| Line | Amount |
|---|---|
| Income total used by the income tests | $66,000 |
| Military pay excluded (not in the base) | $20,000 |
| + Other ordinary income in the base | $30,000 |
| + Retirement income in the base | $16,000 |
| − Standard deduction | $3,400 |
| − Personal exemption | $3,200 |
| = State taxable income | $39,400 |
| Tax from the rate schedule | $1,819 |
| = Tax before credits | $1,819 |
| + County income tax | $1,229.28 |
| = Tax | $3,048.28 |
Married filing jointly, ages 67 and 61: $50,000 IRA, $10,000 interest, $30,000 Social Security ($25,500 federally taxable), each spouse's age given: $3,559.83
| Line | Amount |
|---|---|
| Income total used by the income tests | $85,500 |
| + Other ordinary income in the base | $10,000 |
| + Retirement income in the base | $50,000 |
| − Standard deduction | $6,700 |
| − Personal exemption | $6,400 |
| − Age subtractions and deductions | $1,000 |
| = State taxable income | $45,900 |
| Tax from the rate schedule | $2,127.75 |
| = Tax before credits | $2,127.75 |
| + County income tax | $1,432.08 |
| = Tax | $3,559.83 |
What the engine does not calculate, and known approximations
- County tax uses the 3.12% population-weighted average of the 24 local rates unless localTaxRate is supplied.
- The disability route to the pension exclusion is not modeled; only age 65+.
- Separate Maryland subtractions for public-safety and forest/park/wildlife ranger pensions are not modeled (military pay has its own rule). (Public pensions)
- Exempt-asset carve-outs from the 2% tax (e.g. principal residence) are not modeled. (Capital gains)
What the engine does not calculate for any state (itemized deductions, credits beyond those listed, part-year residents, dependents, blindness and disability, and more) is listed on the calculation order page.
Verification
Statute and instructions cited The pension exclusion, capital-gains surcharge and county tax cited to the Comptroller; golden rows pin them.
- Golden scenarios (hand-computed expected tax, asserted to within $1):
MDLOC1,MD-pension-65,MD-pension-ss-offset,MD-pension-mixed. - State-specific unit tests:
test_none_state_taxes_pension_like_ordinary,test_md_cg_surcharge,test_md_pension_exclusion,test_d8_local_tax_default_and_override,test_military_tiers,test_military_per_return_caps,test_md_per_spouse,test_md_exemptions_hoh_mfs. - Structural tests covering every state: 3.
Social Security
Social Security benefits are fully exempt: none of the federally taxable amount enters the state base.
API value:
socialSecurityRule: "exempt". The engine's input is the federally taxable amount; income tests use the sum of the income components as the adjusted-gross-income proxy.