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: Worksheet-tested (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 · Blindness and disability · Part-year and nonresident returns · Worked examples · After 2026 · 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. - Blindness and disability, per person only when the caller says a person is blind or disabled The filer is person one; the spouse counts only on a joint return and only when the caller says so (there is no household convention as for age). Where a state lets a disabled person (and, where it says so, a blind one, or one whose spouse is disabled) qualify for its general retirement exclusion before the age, that person is treated as having reached the age for that exclusion only. Of the 42 taxing jurisdictions, these have a blind amount: Arizona, Arkansas, California, Colorado, Delaware, the District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, North Dakota, Oklahoma, Oregon, Utah, Vermont and Virginia; these have none: Alabama, Connecticut, Georgia, Louisiana, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, West Virginia and Wisconsin. A disability route is calculated in Arkansas, the District of Columbia, Georgia, Hawaii, Idaho, Iowa, Maryland, Michigan, New Jersey, Oregon and West Virginia.
engine step (compute_state_tax_detail). Engine convention, no external source: Who is blind or disabled is the caller's statement; the engine has no household convention for it. - 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 2026-10-12); Maryland Withholding Tax Facts, January 2026 - December 2026 (COM RAD 098, rev. 12/25) (checked 2026-10-12); Withholding guide (checked 2026-10-12); StatuteText (checked 2026-10-12) - 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 2026-10-12); Maryland Withholding Tax Facts, January 2026 - December 2026 (COM RAD 098, rev. 12/25) (checked 2026-10-12); Withholding guide (checked 2026-10-12); StatuteText (checked 2026-10-12) - 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 2026-10-12); Maryland Withholding Tax Facts, January 2026 - December 2026 (COM RAD 098, rev. 12/25) (checked 2026-10-12); Withholding guide (checked 2026-10-12); StatuteText (checked 2026-10-12) - The income total every income test uses Other ordinary income + retirement distributions (before any exclusion) + conversion + federally taxable Social Security + long-term gains + Railroad Retirement Tier 2. 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 (employer-plan money included), 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 is divided by each spouse's own gross benefits where the caller givesspouse.socialSecurityGross, else 50/50; 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. Where the state lets a disabled retiree qualify at any age, a disabled person is treated as having reached the rule's age.
Maryland's values · engine step (compute_state_tax_detail). Sources (Military retirement pay): Tb 51 apr 10 2025 (checked 2026-10-12); Pension Exclusion Worksheet (checked 2026-10-12) - 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 2026-10-12); Pension Exclusion Worksheet (checked 2026-10-12) - Capital-loss deduction off the base The deduction comes off the other ordinary income (negative income, as Form 1040 line 7a is), so the base and every state-AGI figure summed from it carry it; WI no more than Wisconsin ordinary income (Schedule WD line 28(c)). States whose base is federal taxable income (with the caller's figure) already have it there and take it only once. Engine 1.13.1: the allowed rental loss comes off the same way, on its own line (rental_loss_deduction).
Maryland's values · engine step (compute_state_tax_detail). Sources (Capital gains): Tax-General § 10-105 (State income tax rates) (checked 2026-10-12); Maryland Tax Alert: Changes ... from the 2025 Legislative Session (rev. Dec 22, 2025) (checked 2026-10-12); Md. Code, Tax-General §10-203 (checked 2026-10-12); 2025 Schedule D (Form 1040), Capital Gains and Losses (checked 2026-10-12) - 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 2026-10-12) - 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 their own Social Security offset (by the spouse's stated gross benefits, else half). 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 2026-10-12); Tax-General § 10-209 (Pension exclusion) (checked 2026-10-12); Tax-General §10-209 (pension exclusion) (checked 2026-10-12) - 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 2026-10-12); Tax-General § 10-209 (Pension exclusion) (checked 2026-10-12); Tax-General §10-209 (pension exclusion) (checked 2026-10-12) - 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 2026-10-12); Tax-General § 10-209 (Pension exclusion) (checked 2026-10-12); Tax-General §10-209 (pension exclusion) (checked 2026-10-12) - 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, with the Railroad Retirement tiers the state's worksheet names. In per-person mode each spouse's cap is reduced by that spouse's own benefits (by the spouse's stated gross, else half).
Maryland's values · engine step (retirement_distributions_in_state_base). Sources (IRA, 401(k) and private pensions): Tax Guidance - Maryland Pension Exclusion (KB0010012) (checked 2026-10-12); Tax-General § 10-209 (Pension exclusion) (checked 2026-10-12); Tax-General §10-209 (pension exclusion) (checked 2026-10-12) - 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 2026-10-12); Tax-General § 10-209 (Pension exclusion) (checked 2026-10-12); Tax-General §10-209 (pension exclusion) (checked 2026-10-12) - 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 2026-10-12); Tax-General § 10-209 (Pension exclusion) (checked 2026-10-12); Tax-General §10-209 (pension exclusion) (checked 2026-10-12) - 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 2026-10-12); Maryland Tax Alert: Changes ... from the 2025 Legislative Session (rev. Dec 22, 2025) (checked 2026-10-12); Md. Code, Tax-General §10-203 (checked 2026-10-12); 2025 Schedule D (Form 1040), Capital Gains and Losses (checked 2026-10-12) - 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 2026-10-12); Maryland Employer Withholding Guide 2026 (checked 2026-10-12); 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 2026-10-12); Tax-General § 10-211 (Exemptions) (checked 2026-10-12); StatuteText (checked 2026-10-12); Mw507 (checked 2026-10-12); 2025 Maryland Resident Income Tax Booklet (checked 2026-10-12); 2025 Maryland resident booklet (lines 22-23, 29-30) (checked 2026-10-12); Rev. Proc. 2025-32 §4.06 (2026 earned income credit) (checked 2026-10-12); 26 U.S.C. §32 (earned income credit) (checked 2026-10-12); 2026 HHS poverty guidelines (checked 2026-10-12) - Exemption for blindness only when the caller says a person is blind or disabled An extra exemption for each blind person (the filer, and the spouse on a joint return). Where the state's exemption is for a person who is blind or disabled, a disabled person below the state's age limit (if any) qualifies too, one exemption per person either way.
Maryland's values · engine step (compute_state_tax_detail). Sources (Blindness and disability): Tax-General 10-211 (checked 2026-10-12); Tax-General 10-209 (checked 2026-10-12) - Dependent exemptions and deductions only when the caller lists dependents An amount per dependent subtracted like the personal exemption: the state's flat amount, or the stepped per-exemption amount the filer gets, or the state's own income steps; nothing above an income limit where there is one; a percentage phase-out per income step where there is one; one more for a dependent in an age band or a student up to an age, for a dependent born in the year, and for a disabled dependent; a deduction per dependent beyond the first on joint and head-of-household returns; and a child deduction by an income table for dependents under an age. A head of household's status exemption that already holds one dependent's amount counts one fewer. Where the state says so, the phase-out is measured on the state AGI (the base before deductions).
Maryland's values · engine step (compute_state_tax_detail). Sources (Deductions, exemptions and credits): Tax-General § 10-217 (Standard deduction) (checked 2026-10-12); Maryland Employer Withholding Guide 2026 (checked 2026-10-12); 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 2026-10-12); Tax-General § 10-211 (Exemptions) (checked 2026-10-12); StatuteText (checked 2026-10-12); Mw507 (checked 2026-10-12); 2025 Maryland Resident Income Tax Booklet (checked 2026-10-12); 2025 Maryland resident booklet (lines 22-23, 29-30) (checked 2026-10-12); Rev. Proc. 2025-32 §4.06 (2026 earned income credit) (checked 2026-10-12); 26 U.S.C. §32 (earned income credit) (checked 2026-10-12); 2026 HHS poverty guidelines (checked 2026-10-12) - 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. Where the statute counts income from any source, the taxable remainder of the spouse's own public pension is part of that own income. Where the state says so, the Social Security that offsets a person's amount is that person's own.
Maryland's values · engine step (compute_state_tax_detail). Sources (Age 65+ subtractions and credits): StatuteText (checked 2026-10-12); Mw507 (checked 2026-10-12); Maryland Tax-General section 10-754 (Senior Tax Credit) (checked 2026-10-12); 2025 Maryland Resident Income Tax Booklet (checked 2026-10-12); Tax-General §10-207 (subtractions) (checked 2026-10-12) - Subtraction at 100 Each individual at least the age subtracts the first income up to the amount: with the spouse's own amounts, each qualifying spouse's own income left in the base (the joint items half each); otherwise the household's, one amount per qualifying person at the household age.
Maryland's values · engine step (compute_state_tax_detail). Sources (Age 65+ subtractions and credits): StatuteText (checked 2026-10-12); Mw507 (checked 2026-10-12); Maryland Tax-General section 10-754 (Senior Tax Credit) (checked 2026-10-12); 2025 Maryland Resident Income Tax Booklet (checked 2026-10-12); Tax-General §10-207 (subtractions) (checked 2026-10-12) - Two-income subtraction joint returns with each spouse's own amounts given On a joint return with the spouse's own amounts given: each spouse's income in the base (own wages, own retirement income left after their own exclusions, own conversion, half the joint items), and the smaller of the two, at most the maximum, is subtracted. Where the state says so (Maryland, Worksheet 13D line 4), each spouse's income is net of that spouse's own subtraction at 100.
Maryland's values · engine step (compute_state_tax_detail). Sources (Deductions, exemptions and credits): Tax-General § 10-217 (Standard deduction) (checked 2026-10-12); Maryland Employer Withholding Guide 2026 (checked 2026-10-12); 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 2026-10-12); Tax-General § 10-211 (Exemptions) (checked 2026-10-12); StatuteText (checked 2026-10-12); Mw507 (checked 2026-10-12); 2025 Maryland Resident Income Tax Booklet (checked 2026-10-12); 2025 Maryland resident booklet (lines 22-23, 29-30) (checked 2026-10-12); Rev. Proc. 2025-32 §4.06 (2026 earned income credit) (checked 2026-10-12); 26 U.S.C. §32 (earned income credit) (checked 2026-10-12); 2026 HHS poverty guidelines (checked 2026-10-12) - 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), unless the state has a tax computed apart from taxable income that still applies (next step).
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 2026-10-12); Maryland Withholding Tax Facts, January 2026 - December 2026 (COM RAD 098, rev. 12/25) (checked 2026-10-12); Withholding guide (checked 2026-10-12); StatuteText (checked 2026-10-12) - 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 2026-10-12); Maryland Withholding Tax Facts, January 2026 - December 2026 (COM RAD 098, rev. 12/25) (checked 2026-10-12); Withholding guide (checked 2026-10-12); StatuteText (checked 2026-10-12) - Senior credit per return For a filer at or above the age: the single amount (single, separate) while federal AGI is at most the single limit; for a head of household, or a joint return with both spouses at the age, the joint amount while AGI is at most the joint limit (one spouse: the smaller joint amount). Nonrefundable, against the state tax before the local tax.
Maryland's values · engine step (compute_state_tax_detail). Sources (Age 65+ subtractions and credits): StatuteText (checked 2026-10-12); Mw507 (checked 2026-10-12); Maryland Tax-General section 10-754 (Senior Tax Credit) (checked 2026-10-12); 2025 Maryland Resident Income Tax Booklet (checked 2026-10-12); Tax-General §10-207 (subtractions) (checked 2026-10-12) - Earned income and poverty level credits The federal earned income credit (the step below) is computed from the credit rate on earned income (the wages) up to the maximum, less the phase-out rate on the larger of the income total and earned income over the start (joint start on a joint return), none above the investment-income limit, by qualifying children (dependents under 19, students under 24, disabled at any age; at most 3); without one the filer or a spouse must be under the age. Not on a separate return. The state takes its share (a different share for a single or head-of-household filer without a child). The poverty level credit is a share of earned income while the larger of the income total and earned income is under the poverty guideline for the persons on the return. Both are nonrefundable; their local counterparts reduce the county tax.
Maryland's values · engine step (compute_state_tax_detail). Sources (Deductions, exemptions and credits): Tax-General § 10-217 (Standard deduction) (checked 2026-10-12); Maryland Employer Withholding Guide 2026 (checked 2026-10-12); 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 2026-10-12); Tax-General § 10-211 (Exemptions) (checked 2026-10-12); StatuteText (checked 2026-10-12); Mw507 (checked 2026-10-12); 2025 Maryland Resident Income Tax Booklet (checked 2026-10-12); 2025 Maryland resident booklet (lines 22-23, 29-30) (checked 2026-10-12); Rev. Proc. 2025-32 §4.06 (2026 earned income credit) (checked 2026-10-12); 26 U.S.C. §32 (earned income credit) (checked 2026-10-12); 2026 HHS poverty guidelines (checked 2026-10-12) - The federal earned income credit The federal earned income credit the state credits read: the credit rate on earned income up to the maximum, less the phase-out rate on the larger of the income total and earned income over the start (joint start on a joint return) — where the state says so, measured from the income at which the maximum is reached when that is higher; none above the investment-income limit; by qualifying children (dependents under 19, students under 24, disabled at any age; at most 3); without one the filer or a spouse must be at least the minimum age where the state sets one and under the maximum age. Not on a separate return.
Maryland's values · engine step (federal_eic). Sources (Deductions, exemptions and credits): Tax-General § 10-217 (Standard deduction) (checked 2026-10-12); Maryland Employer Withholding Guide 2026 (checked 2026-10-12); 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 2026-10-12); Tax-General § 10-211 (Exemptions) (checked 2026-10-12); StatuteText (checked 2026-10-12); Mw507 (checked 2026-10-12); 2025 Maryland Resident Income Tax Booklet (checked 2026-10-12); 2025 Maryland resident booklet (lines 22-23, 29-30) (checked 2026-10-12); Rev. Proc. 2025-32 §4.06 (2026 earned income credit) (checked 2026-10-12); 26 U.S.C. §32 (earned income credit) (checked 2026-10-12); 2026 HHS poverty guidelines (checked 2026-10-12) - 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 — except the county's own earned income and poverty level credits (the federal earned income credit times the multiplier times the rate, and earned income times the rate), which reduce the county tax to at most zero. The rate is the population-weighted average of the official county rates, or the county rate the request gives in
localTaxRate(within the state's lowest and highest rate). Engine 1.12.0: with a county code inlocalities, that county's rate; Maryland's Anne Arundel taxes on marginal brackets and Frederick at the rate of the tier the income falls in, on the whole income (its local credits at that rate).
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 2026-10-12); Tax-General § 10-106 (County income tax rate) (checked 2026-10-12); Tax Guidance - Maryland Income Tax Rates and Brackets (KB0010014; rendered with headless Chrome, ServiceNow portal) (checked 2026-10-12); 2026 Payment Voucher Worksheet for Estimated Tax and Extension Payments (PVW) (checked 2026-10-12); 2025 Maryland State & Local Tax Forms & Instructions (resident booklet, Form 502) (checked 2026-10-12); Maryland 2025 Resident Income Tax Return Instructions (Resident Booklet) (checked 2026-10-06); Maryland Form 505NR Nonresident Income Tax Calculation (2025) (checked 2026-10-06) - 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 2026-10-12); Maryland Tax Alert: Changes ... from the 2025 Legislative Session (rev. Dec 22, 2025) (checked 2026-10-12); Md. Code, Tax-General §10-203 (checked 2026-10-12); 2025 Schedule D (Form 1040), Capital Gains and Losses (checked 2026-10-12) - Qualifying surviving spouse qualifying surviving spouse returns A qualifying surviving spouse (
filingStatusqss) is one person on the return, taxed from the single figures with the state's own treatment of the status laid over them: where the state says so, the joint rate schedule, the joint standard deduction, the joint personal exemption, the joint income limits and phase-outs (only those the state sets for joint returns), the married 65+ and blindness amounts, or the head-of-household return; where the state gives the status nothing of its own, the single return. The federal figures the engine derives for the status are the federal qualifying-surviving-spouse ones (the joint standard deduction, the married 65+ amount).
Maryland's values · engine step (state_tax_effective_config). Sources (Rate schedule): Tax-General § 10-105 (State income tax rates) (checked 2026-10-12); Maryland Withholding Tax Facts, January 2026 - December 2026 (COM RAD 098, rev. 12/25) (checked 2026-10-12); Withholding guide (checked 2026-10-12); StatuteText (checked 2026-10-12) - Railroad Retirement benefits only when the caller gives Railroad Retirement benefits Railroad Retirement benefits are never taxed by a state (45 U.S.C. §231m). Tier 2 (
railroadRetirementTier2) is in the income total the tests use but never in the base. Tier 1 (railroadRetirementTier1) is a part of the gross benefits (socialSecurityGross); its share of the taxable benefits is taken out of the Social Security every state rule sees, so a state that taxes Social Security never reaches it. Where a state's worksheet says so, the benefits reduce a retirement cap or subtraction (ID, IN, MD, ME, MN: both tiers; MI: the taxable railroad benefits); Minnesota's and Utah's Social Security rules test an income without them, Minnesota's, New Jersey's and California's retirement income tests an income without Tier 2; Ohio and Delaware test their own AGI everywhere, which never holds the benefits.
Maryland's values · engine step (compute_state_tax_detail). Sources (Social Security): Tax-General § 10-207 (Subtractions from federal adjusted gross income) (checked 2026-10-12) - The capital-loss deduction the state allows With a net capital loss (capitalLoss): the smaller of the loss and the state's limit (the federal $3,000 / $1,500 where the state follows the federal return; MA $2,000, and no more than the interest and dividends); AL the loss less the part carried in, unlimited; PA and NJ none. It comes off the income total the income tests use (and the Social Security worksheets' income); the gross-income filing test (LA) reads the total before it. Engine 1.13.1: with a rental loss (rentalNetIncome below 0, the federal Schedule E line 26 amount) the state allows, the whole loss where the state starts from federal AGI or follows the federal schedule, none in PA and NJ (rental_loss_no_offset): it comes off the same income the same way; a rental profit is other ordinary income.
Maryland's values · engine step (compute_state_tax_detail). Sources (Capital gains): Tax-General § 10-105 (State income tax rates) (checked 2026-10-12); Maryland Tax Alert: Changes ... from the 2025 Legislative Session (rev. Dec 22, 2025) (checked 2026-10-12); Md. Code, Tax-General §10-203 (checked 2026-10-12); 2025 Schedule D (Form 1040), Capital Gains and Losses (checked 2026-10-12) - Each spouse's own Social Security joint returns On a joint return, each spouse's own Social Security is the spouse's share of the benefits by
spouse.socialSecurityGrosswhen the caller gives it (Tier 1 railroad benefits left out), else half each. It is what the per-spouse rules read: Colorado's per-spouse subtraction, Rhode Island's per-spouse modification, and the Maine, Maryland and other retirement caps reduced by the benefits each spouse received (with each spouse's own railroad benefits where the state counts them).
Maryland's values · engine step (compute_state_tax_detail). Sources (Social Security): Tax-General § 10-207 (Subtractions from federal adjusted gross income) (checked 2026-10-12) - 401(k), 403(b) and 457(b) distributions only when the caller gives 401(k), 403(b) or 457(b) distributions Employer-plan distributions (
employerPlanDistributions) are part of the IRA-sourced money. Where the state's pension rule covers employer plans (Maryland's pension exclusion, Rhode Island's Schedule M modification) they count as pension income, up to the distributions not already pension or military pay; everywhere else they are treated like IRA distributions.
Maryland's values · engine step (compute_state_tax_detail). Sources (IRA, 401(k) and private pensions): Tax Guidance - Maryland Pension Exclusion (KB0010012) (checked 2026-10-12); Tax-General § 10-209 (Pension exclusion) (checked 2026-10-12); Tax-General §10-209 (pension exclusion) (checked 2026-10-12) - Taxes that survive a zero taxable income Where the state's forms compute them apart from taxable income, the early-distribution tax, the minimum tax and the capital-gains surcharge still apply when taxable income is zero or less: the return goes on with taxable income 0 (no schedule tax), and only the credits the state allows against them reduce them.
Maryland's values · engine step (compute_state_tax_detail). Sources (Rate schedule): Tax-General § 10-105 (State income tax rates) (checked 2026-10-12); Maryland Withholding Tax Facts, January 2026 - December 2026 (COM RAD 098, rev. 12/25) (checked 2026-10-12); Withholding guide (checked 2026-10-12); StatuteText (checked 2026-10-12) - Refundable state credits The credits paid beyond the tax (reported in refundableCredits; netTax = totalTax less them): earned income credits as a share of the federal EIC with each state's own age band (OK on the 2020 federal credit, DC's own childless schedule, the CalEITC table, MN's Working Family Credit), the NYC EIC and school tax credits, and the property-tax, renter, grocery and senior credits of MA, MI, NJ, ID, HI, NM, OK, AZ, NY, RI, WV, ME, DC, MN, MO, WI, IN and MT, each on its own income measure. Engine 1.13.1: a part-year NYC resident's school tax credits (the Table 2 proration chart and the rate-reduction amount on IT-360.1 line 47; IT-203 lines 60 / 60a for a part-year state resident).
Maryland's values · engine step (state_tax_refundable_credits). Sources (Deductions, exemptions and credits): Tax-General § 10-217 (Standard deduction) (checked 2026-10-12); Maryland Employer Withholding Guide 2026 (checked 2026-10-12); 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 2026-10-12); Tax-General § 10-211 (Exemptions) (checked 2026-10-12); StatuteText (checked 2026-10-12); Mw507 (checked 2026-10-12); 2025 Maryland Resident Income Tax Booklet (checked 2026-10-12); 2025 Maryland resident booklet (lines 22-23, 29-30) (checked 2026-10-12); Rev. Proc. 2025-32 §4.06 (2026 earned income credit) (checked 2026-10-12); 26 U.S.C. §32 (earned income credit) (checked 2026-10-12); 2026 HHS poverty guidelines (checked 2026-10-12)
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 2026-10-12.
- 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 2026-10-12.
- Withholding guide, Comptroller of Maryland. Comptroller of Maryland: "For the purpose of the percentage method calculation the Standard Deduction is $3,400" Checked 2026-10-12.
- 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 2026-10-12.
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: section 10-217(c) indexes the $6,700 from 2026 with the increase rounded down to $50; the Comptroller's 2026 withholding guide and MW507 give only the single $3,400 (checked 2026-09-27) and no 2026 Form 502 booklet is published. The single step (+$50 on $3,350) bounds the index at 1.49%-2.99%, so the joint figure is $6,800 or $6,850; the engine keeps the $6,700 base until it is published (overstates MFJ/HOH tax by at most $150 x the marginal rate).
- The two-income subtraction needs the spouse's own amounts (the API's spouse object); without them the engine does not guess a second earner.
- 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 2026-10-12.
- 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 2026-10-12.
- 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 2026-10-12.
- Tax-General § 10-211 (Exemptions), Maryland General Assembly (Annotated Code of Maryland). Maryland allows a $3,200 personal exemption per exemption, reduced in steps for federal AGI over $100,000 (single); the engine applies the stepped amounts (engine 1.2.0). Engine 1.7.0: Tax-General §10-211: the exemption amount ($3,200, stepped by federal AGI like the filer's) per dependent, and one more for a dependent 65 or older. Checked 2026-10-12.
- 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 2026-10-12.
- 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 2026-10-12.
- 2025 Maryland Resident Income Tax Booklet, Comptroller of Maryland. Form 502 line 14 (Worksheet 13D): on a joint return with both spouses having income, the smaller spouse income (net of that spouse's subtractions), at most $1,200. Engine 1.7.0: Tax-General §10-211: the exemption amount ($3,200, stepped by federal AGI like the filer's) per dependent, and one more for a dependent 65 or older. Worksheet 13D line 4: each spouse's income for the two-income subtraction is net of that spouse's subtractions on lines 8-13, line 13 carrying the Form 502SU subtractions (the §10-207(nn) subtraction at 100). Checked 2026-10-12.
- 2025 Maryland resident booklet (lines 22-23, 29-30), Comptroller of Maryland. The State earned income credit is half the federal credit (all of it for a single or head-of-household filer without a qualifying child; the federal minimum age disregarded); the poverty level credit is 5% of earned income when earned income and income are below the poverty guideline for the household; the local credits are the federal credit times ten times the local rate and earned income times the local rate. The nonrefundable parts are applied by engine 1.8.0. Checked 2026-10-12.
- Rev. Proc. 2025-32 §4.06 (2026 earned income credit), Internal Revenue Service. The 2026 earned income credit amounts: earned income amount $13,020 / $18,290 / $18,290 / $8,680, maximum credit $4,427 / $7,316 / $8,231 / $664 (one, two, three or more, no qualifying children), phase-out thresholds $23,890 ($31,160 joint) with children and $10,860 ($18,140 joint) without, and no credit above $12,200 of investment income. Checked 2026-10-12.
- 26 U.S.C. §32 (earned income credit), Legal Information Institute (U.S. Code). The credit and phase-out percentages (34 / 15.98, 40 / 21.06, 45 / 21.06, 7.65 / 7.65) and, without a qualifying child, the age test (25 to under 65). Checked 2026-10-12.
- 2026 HHS poverty guidelines, U.S. Department of Health and Human Services (ASPE). The 2026 poverty guideline ($15,960 for one person, $5,680 more per person) used for the Maryland poverty level credits. Checked 2026-10-12.
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.
Source review notes (what the sources do not state outright, or what the engine does not carry):
- Section 10-754(c) halves the credit ($500 / $875) at federal AGI $50,000-$100,000 / $100,000-$150,000 in a year the September Board of Revenue Estimates figure falls more than 3.75% below March's; the September 2026 report was not out on 2026-09-27, so the engine uses the full credit.
- 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 2026-10-12.
- 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 2026-10-12.
- Maryland Tax-General section 10-754 (Senior Tax Credit), Maryland General Assembly. A resident 65 or older may claim $1,000 (federal AGI up to $100,000), or $1,750 on a joint return, for a surviving spouse or a head of household (federal AGI up to $150,000), $1,000 if only one joint spouse is 65+; the unused credit is not carried over. Checked 2026-10-12.
- 2025 Maryland Resident Income Tax Booklet, Comptroller of Maryland. The Senior Tax Credit (Form 502CR Part M) is $1,750 for joint, surviving spouse and head of household filers with federal AGI up to $150,000. Checked 2026-10-12.
- Tax-General §10-207 (subtractions), Maryland General Assembly (Annotated Code of Maryland). The first $100,000 of income of an individual at least 100 years old is subtracted (subsection (nn)); engine 1.8.0. Checked 2026-10-12.
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 2026-10-12.
- 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 2026-10-12.
- Tax-General §10-209 (pension exclusion), Maryland General Assembly (Annotated Code of Maryland). The maximum pension exclusion is the maximum annual Social Security benefit of a person who retired at 65 in the prior year, as the Comptroller determines (the Comptroller's 2026 figure is $40,600, below TY2025's $41,200). Checked 2026-10-12.
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 2026-10-12.
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 2026-10-12.
- 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 2026-10-12.
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 2026-10-12.
- 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 2026-10-12.
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 2026-10-12.
- 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 2026-10-12.
- Md. Code, Tax-General §10-203, Maryland General Assembly. The state return starts from federal adjusted gross income (federal taxable income in CO, IA, ND), so the federal capital-loss deduction (up to $3,000, $1,500 married filing separately) and its carryover are in the state base (engine 1.9.0: cap_loss_limit). Checked 2026-10-12.
- 2025 Schedule D (Form 1040), Capital Gains and Losses, Internal Revenue Service. The federal return deducts a net capital loss up to $3,000 ($1,500 married filing separately) on Form 1040 line 7a; a state that starts from federal adjusted gross income or federal taxable income carries that deduction. Checked 2026-10-12.
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 2026-10-12.
- 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 2026-10-12.
- Tax Guidance - Maryland Income Tax Rates and Brackets (KB0010014; rendered with headless Chrome, ServiceNow portal), Comptroller of Maryland. Maryland county / Baltimore City income tax (engine 1.12.0, localities): Each county and Baltimore City levies a local income tax on residents equal to a percentage of Maryland taxable net income, collected on the state return. County of residence on the last day of the tax year controls. 2026 rates published by the Comptroller (web rate table and 2026 estimated-tax work Checked 2026-10-12.
- 2026 Payment Voucher Worksheet for Estimated Tax and Extension Payments (PVW), Comptroller of Maryland. Maryland county / Baltimore City income tax (engine 1.12.0, localities): Each county and Baltimore City levies a local income tax on residents equal to a percentage of Maryland taxable net income, collected on the state return. County of residence on the last day of the tax year controls. 2026 rates published by the Comptroller (web rate table and 2026 estimated-tax work Checked 2026-10-12.
- 2025 Maryland State & Local Tax Forms & Instructions (resident booklet, Form 502), Comptroller of Maryland. Maryland county / Baltimore City income tax (engine 1.12.0, localities): Each county and Baltimore City levies a local income tax on residents equal to a percentage of Maryland taxable net income, collected on the state return. County of residence on the last day of the tax year controls. 2026 rates published by the Comptroller (web rate table and 2026 estimated-tax work Checked 2026-10-12.
- Maryland 2025 Resident Income Tax Return Instructions (Resident Booklet), Comptroller of Maryland. Local taxes with residency (engine 1.13.0): Checked 2026-10-06.
- Maryland Form 505NR Nonresident Income Tax Calculation (2025), Comptroller of Maryland. Local taxes with residency (engine 1.13.0): Checked 2026-10-06.
Blindness and disability
- An extra exemption of $1,000 for each person who is blind (the filer, and the spouse on a joint return).
- The retirement income exclusion's age test is met by a disabled person, and by a person whose spouse is disabled: the engine treats them as 65 for that exclusion only.
- The API applies these through its
blind,disabled,spouse.blindandspouse.disabledfields; absent means false.
- Tax-General 10-211, Maryland General Assembly. $1,000 more for each blind taxpayer. Checked 2026-10-12.
- Tax-General 10-209, Maryland General Assembly. The pension exclusion goes to a resident who is 65, or totally disabled, or whose spouse is totally disabled. Checked 2026-10-12.
Part-year and nonresident returns
- Part-year resident (Form 502 (part-year)): the tax on the state's own income (what was received while a resident, plus the state-source income while a nonresident), with the deductions and exemptions the form prorates scaled by its ratio.
- Nonresident (Form 505 / 505NR): the tax a full-year resident would owe on all the year's income, times the state's income ratio.
- The ratio: the state's own AGI (after its subtractions) of the state's income over the federal AGI of the whole year, rounded to 6 places, at most 1.
- Prorated on a part-year return: the standard deduction, the personal exemptions, the age-65 subtraction or exemption, the retirement exclusion caps, dependent exemptions.
- Prorated on a nonresident return: the standard deduction, the personal exemptions, the age-65 subtraction or exemption, dependent exemptions.
- Part-year (Form 502): the pension exclusion × months resident / 12, then the standard deduction and exemptions × Maryland AGI / federal AGI (six places). Nonresident (505 / 505NR): the state tax × Maryland taxable income / all taxable income, plus the special nonresident tax of 2.25% of Maryland taxable income in place of a county tax.
- A nonresident's retirement income is not taxable by the state (4 U.S.C. §114); the API refuses it in
residency.stateIncome. The credit for tax paid to another state and the earned income credits on these returns are not computed.
Married couples whose residency differs (engine 1.13.0)
With residency.spouse on a joint request, each allowed treatment is calculated and reported in residency.couple; tax is the required one, else the state's default, else the couple's residency.election, else the joint return the request's mfj names. Each rule is quoted from the state's instructions (engine 1.14.0: and its statutes, regulations, bulletins and other official guidance) in the sources below.
| Spouses | Maryland's rule |
|---|---|
| One spouse a full-year resident, the other a part-year resident | a joint part-year / nonresident return is required; the pension exclusion by each spouse's own months of residence. |
| One spouse a full-year resident, the other a nonresident | a joint part-year / nonresident return, unless the couple elects separate returns; the pension exclusion by each spouse's own months of residence. |
| One spouse a part-year resident, the other a nonresident | a joint part-year / nonresident return, unless the couple elects separate returns; the pension exclusion by each spouse's own months of residence. |
| Both part-year residents, different resident periods | a joint part-year / nonresident return is required; the pension exclusion by each spouse's own months of residence. |
| Both nonresidents, only one with income from the state | a joint part-year / nonresident return is required. |
- 2025 Maryland Resident Tax Forms & Instructions (Form 502 booklet), Comptroller of Maryland. Part-year / nonresident return (engine 1.12.0, residency): PART-YEAR (Form 502) = D: return starts from full-year federal AGI (line 1), income received while a nonresident is subtracted (line 12 / Instruction 26 j), and the standard/itemized deduction, exemptions and EIC/poverty credits are prorated by the Maryland income factor (Worksheet 26A = Form 502 line 16 / line 1). Tax rates apply to the resulting Maryland taxable net income; county/Baltimore City tax at the rate of the jurisdiction of residence on the LAST DAY of Maryland residence. NONRESIDENT (Form 505 + 505NR) = R on taxable income Checked 2026-10-12.
- 2025 Maryland Nonresident Tax Forms & Instructions (Form 505 booklet), Comptroller of Maryland. Part-year / nonresident return (engine 1.12.0, residency): PART-YEAR (Form 502) = D: return starts from full-year federal AGI (line 1), income received while a nonresident is subtracted (line 12 / Instruction 26 j), and the standard/itemized deduction, exemptions and EIC/poverty credits are prorated by the Maryland income factor (Worksheet 26A = Form 502 line 16 / line 1). Tax rates apply to the resulting Maryland taxable net income; county/Baltimore City tax at the rate of the jurisdiction of residence on the LAST DAY of Maryland residence. NONRESIDENT (Form 505 + 505NR) = R on taxable income Checked 2026-10-12.
- 2025 Maryland Form 505NR Nonresident Income Tax Calculation, Comptroller of Maryland. Part-year / nonresident return (engine 1.12.0, residency): PART-YEAR (Form 502) = D: return starts from full-year federal AGI (line 1), income received while a nonresident is subtracted (line 12 / Instruction 26 j), and the standard/itemized deduction, exemptions and EIC/poverty credits are prorated by the Maryland income factor (Worksheet 26A = Form 502 line 16 / line 1). Tax rates apply to the resulting Maryland taxable net income; county/Baltimore City tax at the rate of the jurisdiction of residence on the LAST DAY of Maryland residence. NONRESIDENT (Form 505 + 505NR) = R on taxable income Checked 2026-10-12.
- Maryland 2025 Resident Income Tax Return Instructions (Resident Booklet), Comptroller of Maryland. Married couples whose residency differs (engine 1.13.0): Checked 2026-10-06.
- Maryland 2025 Nonresident Income Tax Return Instructions (Nonresident Booklet), Comptroller of Maryland. Married couples whose residency differs (engine 1.13.0): Checked 2026-10-06.
- Maryland Form 505 Nonresident Income Tax Return (2025), Comptroller of Maryland. Married couples whose residency differs (engine 1.13.0): Checked 2026-10-06.
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 | $2,158.46 |
| 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 | $2,518.13 |
| 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) | $2,518.13 |
| 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 | $2,559.83 |
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: $2,158.46
| 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 |
| Senior credit | $1,000 |
| − Credits used (never more than the tax) | $1,000 |
| + County income tax | $1,272.96 |
| = Tax | $2,158.46 |
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: $2,518.13
| 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 |
| Senior credit | $1,750 |
| − Credits used (never more than the tax) | $1,750 |
| + County income tax | $1,712.88 |
| = Tax | $2,518.13 |
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): $2,518.13
| 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 |
| Senior credit | $1,750 |
| − Credits used (never more than the tax) | $1,750 |
| + County income tax | $1,712.88 |
| = Tax | $2,518.13 |
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: $2,559.83
| 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 |
| Senior credit | $1,000 |
| − Credits used (never more than the tax) | $1,000 |
| + County income tax | $1,432.08 |
| = Tax | $2,559.83 |
After 2026: how the amounts move
A request with projection (API) estimates a later tax year from these rules: every
dollar amount and age test below moves the way Maryland's law moves it. Rates and the rules themselves stay the 2026 ones
(how projection works).
| Amounts (engine fields) | After 2026 | What the law says, and the source |
|---|---|---|
brackets_single (the single rate schedule's thresholds), brackets_mfj (the mfj rate schedule's thresholds), brackets_hoh (the hoh rate schedule's thresholds) | Fixed in law: held at the rules-year amount in every later year. | The ten-bracket schedules are nominal in § 10-105(a); the section contains no inflation adjustment of the bracket amounts.
|
std_deduction_single | Indexed: IRC 1(f)(3) cost-of-living adjustment (chained CPI-U), calendar year 2024 substituted for 2016; the increase rounded down to a multiple of $50. | For tax years after 2025 the $3,350 base is increased by the IRC 1(f)(3) cost-of-living adjustment with calendar year 2024 as the base year; the increase is rounded down to a multiple of $50. The Comptroller applies $3,400 for 2026.
|
std_deduction_mfj, std_deduction_hoh | Indexed: IRC 1(f)(3) cost-of-living adjustment (chained CPI-U), calendar year 2024 substituted for 2016; the increase rounded down to a multiple of $50. The engine carries the 2025 figure (the latest published) for 2026, so a projection adds 1 year of indexing at the factor's average annual rate. | The $6,700 joint/HOH/surviving-spouse base is indexed the same way for tax years after 2025 (increase rounded down to $50). The engine carries the 2025 figure.
|
exemption_tier_amount, exemption_tier_agi_single, exemption_tier_agi_joint, senior_subtraction_single, senior_subtraction_mfj, blind_exemption | Fixed in law: held at the rules-year amount in every later year. | The $3,200 exemption, its $1,600/$800/$0 income tiers ($100k/$125k/$150k; $150k/$175k/$200k joint) and the additional $1,000 for age 65+ and for blindness are nominal in § 10-211; the section contains no inflation adjustment.
|
senior_subtraction_min_age, dep_extra_min_age, dep_extra_max_age | Attained age: the same age in every year. | The additional exemptions use an attained age (at least 65 on the last day of the taxable year) for the taxpayer and for a dependent; there is no upper age (the engine's 120 is an open-ended sentinel).
|
retirement_income_exclusion_single, retirement_income_exclusion_mfj | Indexed: maximum annual Social Security benefit for an individual retiring at age 65 in the prior calendar year (Tax-Gen. 10-209(c)); the increase rounded to the nearest $100. | The pension exclusion cap is the maximum annual Social Security benefit for an individual who retired at 65 in the prior calendar year (determined by the Comptroller, may round to $100), less Social Security/RR benefits received. It is not a CPI amount and can fall: $41,200 for 2025, $40,600 for 2026.
|
retirement_exclusion_min_age, retirement_disabled_age | Attained age: the same age in every year. | The exclusion requires age 65 on the last day of the taxable year, or total disability of the resident or spouse (treated by the engine as meeting age 65). Fixed attained age.
|
cg_surcharge_agi_threshold | Fixed in law: held at the rules-year amount in every later year. | The additional 2% on net capital gain applies above federal AGI of $350,000, a nominal amount with no adjustment in § 10-105.
|
military_cap, military_cap_young | Fixed in law: held at the rules-year amount in every later year. | The military retirement subtraction is the first $12,500 (under 55) or $20,000 (55+), nominal in § 10-207(q) with no adjustment.
|
military_min_age | Attained age: the same age in every year. | Age split is attained age 55 on the last day of the taxable year.
|
two_income_subtraction_max | Fixed in law: held at the rules-year amount in every later year. | The two-income subtraction is the lesser of $1,200 or the lower spouse's modified MAGI, nominal in § 10-207(r).
|
age100_subtraction | Fixed in law: held at the rules-year amount in every later year. | The first $100,000 of income of an individual at least 100 years old is subtracted; nominal in § 10-207(nn).
|
age100_min_age | Attained age: the same age in every year. | Attained age 100 on the last day of the taxable year.
|
senior_return_credit_single, senior_return_credit_joint, senior_return_credit_joint_one, senior_return_credit_agi_single, senior_return_credit_agi_joint | Fixed in law: held at the rules-year amount in every later year. | The senior credit ($1,000 / $1,750 joint / $1,000 one-spouse; AGI limits $100,000 / $150,000) is nominal in § 10-754; no inflation adjustment. Subsection (c) halves it for AGI in an upper band in a year the September revenue estimate falls >3.75% below March (see enacted_changes_not_modelled).
|
senior_return_credit_min_age | Attained age: the same age in every year. | Eligible taxpayer: at least 65 on the last day of the taxable year.
|
eic_max_credit, eic_phaseout_start, eic_phaseout_start_mfj | Tied to an indexed federal amount: federal EIC amounts, IRC 32(b)(2) indexed under IRC 32(j) by the IRC 1(f)(3) cost-of-living adjustment (chained CPI-U, Sept-Aug average); the increase rounded to the nearest $10. | Maryland's EIC is a percentage of the federal IRC 32 credit, so the maximum credit and phase-out start are the federal amounts, indexed under IRC 32(j) (earned-income and phase-out amounts rounded to the nearest $10; the maximum credit is the rounded earned-income amount times the credit rate).
|
eic_invest_limit | Tied to an indexed federal amount: IRC 32(i)(1) disqualified investment income limit, indexed under IRC 32(j) by the IRC 1(f)(3) cost-of-living adjustment (chained CPI-U, Sept-Aug average); the increase rounded down to a multiple of $50. | The disqualified investment income limit is the federal IRC 32(i) amount, indexed under IRC 32(j) and rounded down to $50.
|
eic_nochild_max_age | Attained age: the same age in every year. | Maryland disregards only the federal minimum age (25) for a filer without a qualifying child; the federal 'not attained age 65' limit still applies. Fixed attained age.
|
poverty_guideline, poverty_guideline_step | Indexed: HHS poverty guidelines (48 contiguous states), most recent available July 1 of the taxable year; not rounded (the statute states no rounding). | The poverty-level credit uses the most recent HHS poverty income guideline available as of July 1 of the taxable year, so the amounts follow HHS's annual update; the statute states no rounding.
|
cap_loss_limit, cap_loss_limit_mfs | Fixed in law: held at the rules-year amount in every later year. | Maryland starts from federal AGI, so the fixed IRC 1211(b) $3,000/$1,500 limit applies.
|
Enacted for later years, not applied by the projection
- Senior tax credit is halved (to $500 / $875 / $500) for filers with federal AGI of $50,000-$100,000 ($100,000-$150,000 joint) in any tax year in which the September Board of Revenue Estimates general fund estimate is more than 3.75% below the March estimate. (any year, 2027+; conditional)
- Md. Code, Tax-General § 10-754 (Maryland General Assembly, statute): Subsection (c) revenue-trigger reduction. Quoted: "is more than 3.75% below the March General Fund estimate for the current fiscal year". Checked 2026-10-12.
What the engine does not calculate, and known approximations
- The joint/head-of-household standard deduction stays at the 2025 $6,700; §10-217(c) indexing makes the 2026 figure $6,800 or $6,850, not yet published.
- The federal earned income credit is computed from the IRC 32 formula with the 2026 amounts, not the IRS table's $50 rows (a few dollars' difference). Qualifying children are the dependents under 19, students under 24 and disabled dependents; the relationship, residency and younger-than-the-filer tests are not applied. ordinaryIncome and gains count as investment income for the $12,200 limit. No credit on a separate return (the federal separated-spouse rule needs facts the input lacks). Only the nonrefundable parts reduce the State and county tax; the refundable excess (line 44) is a payment and is not shown.
- The poverty level credits use the 2026 HHS poverty guideline for the persons on the return (the filer, the spouse on a joint return and the dependents); the TY2025 booklet prints the 2025 guideline and the 2026 booklet is not published.
- The subtraction at 100 applies to the income each person received: with the spouse object, each qualifying spouse's own income left in the base (joint items half each); without it, $100,000 per spouse at the household age against the household's income.
- County tax uses the 3.12% population-weighted average of the 24 local rates unless the request gives the county's rate in localTaxRate (accepted between the lowest and highest official Maryland local rate); the Anne Arundel and Frederick bracketed rates are not applied.
- 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)
- The Maryland child tax credit is refundable and is not calculated. Sources: Tax-General § 10-217 (Standard deduction) (checked 2026-10-12); Maryland Employer Withholding Guide 2026 (checked 2026-10-12); 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 2026-10-12); Tax-General § 10-211 (Exemptions) (checked 2026-10-12); StatuteText (checked 2026-10-12); Mw507 (checked 2026-10-12); 2025 Maryland Resident Income Tax Booklet (checked 2026-10-12); 2025 Maryland resident booklet (lines 22-23, 29-30) (checked 2026-10-12); Rev. Proc. 2025-32 §4.06 (2026 earned income credit) (checked 2026-10-12); 26 U.S.C. §32 (earned income credit) (checked 2026-10-12); 2026 HHS poverty guidelines (checked 2026-10-12).
- Filing status 6 (a dependent taxpayer, who can be claimed on another person's return, gets no personal exemption) is not calculated: the inputs carry no such fact and every filer gets the exemption. Sources: Tax-General § 10-217 (Standard deduction) (checked 2026-10-12); Maryland Employer Withholding Guide 2026 (checked 2026-10-12); 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 2026-10-12); Tax-General § 10-211 (Exemptions) (checked 2026-10-12); StatuteText (checked 2026-10-12); Mw507 (checked 2026-10-12); 2025 Maryland Resident Income Tax Booklet (checked 2026-10-12); 2025 Maryland resident booklet (lines 22-23, 29-30) (checked 2026-10-12); Rev. Proc. 2025-32 §4.06 (2026 earned income credit) (checked 2026-10-12); 26 U.S.C. §32 (earned income credit) (checked 2026-10-12); 2026 HHS poverty guidelines (checked 2026-10-12).
- Form 502SU subtractions that need facts the inputs do not carry are not calculated, among them job-related police and firefighter disability pensions (code a) and line-of-duty death benefits (code aa), interest on U.S. obligations (code ab) and its exemption adjustment (code hh), and the State pickup part of a State pension (code r). Sources: Tax-General § 10-209 (Pension exclusion) (checked 2026-10-12).
- The refundable Maryland earned income credit (Form 502 line 42) is not calculated; the nonrefundable state and local earned income credits are. Sources: Tax-General § 10-217 (Standard deduction) (checked 2026-10-12); Maryland Employer Withholding Guide 2026 (checked 2026-10-12); 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 2026-10-12); Tax-General § 10-211 (Exemptions) (checked 2026-10-12); StatuteText (checked 2026-10-12); Mw507 (checked 2026-10-12); 2025 Maryland Resident Income Tax Booklet (checked 2026-10-12); 2025 Maryland resident booklet (lines 22-23, 29-30) (checked 2026-10-12); Rev. Proc. 2025-32 §4.06 (2026 earned income credit) (checked 2026-10-12); 26 U.S.C. §32 (earned income credit) (checked 2026-10-12); 2026 HHS poverty guidelines (checked 2026-10-12).
What the engine does not calculate for any state (itemized deductions, credits beyond those listed, part-year residents, and more) is listed on the calculation order page.
Verification
Worksheet-tested Worksheet-tested: 22 scenarios through state_tax_json_handle() replay the 2025 Form 502 line by line with the official 2026 figures ($3,400 single deduction, $40,600 pension exclusion): Worksheet 13A per-spouse columns with the Social Security offset, Chart 10A exemption steps at $100,000/$150,000, the Tax Table midpoint rows and Computation Worksheet Schedules I/II, military code u, Form 502CG line 21b and line 28 local tax; each asserted against the form's whole-dollar line 34 and to the cent against Schedule I/II (tests/test_state_worksheets_2.c).
- 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_localities_endpoint,test_local_registry_shape,test_md_senior_credit,test_md_two_income,test_c_interface_edges,test_s2_md_age100,test_s2_md_credits,test_county_part_year,test_military_tiers,test_military_per_return_caps,test_md_per_spouse,test_md,test_ratio_rules,test_engine_paths,test_prop_p1,test_md_exemptions_hoh_mfs,test_md_disabled_spouse. - Structural tests covering every state: 8.
- State forms and worksheets followed in the test derivations: Form 502 (2025) lines 1-34 with 2026 figures; Pension Exclusion Computation Worksheet 13A (both columns); Exemption Amount Chart 10A; 2025 Maryland Tax Table (midpoint rows) and Tax Computation Worksheet Schedules I and II (17A); Form 502CG line 9 / Form 502 lines 20a-21b; Instruction 13 code u (military retirement, TB-51); Form 502 line 28 local tax; backend/tests/test_state_worksheets_2.c.
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.