Maryland

Moving from Oregon to Maryland would RAISE your total state and local tax burden from 10.8% of income to 11.3% of income — an increase of +0.5 pts. On a $100K household budget, that is roughly $500 more per year in combined state and local taxes.

Maryland top marginal income tax rate is 5.75%, versus 9.9% in Oregon. Compare across your expected income bracket — top rates kick in at different thresholds in each state.

Maryland state sales tax is 6.00%. With average local add-ons, the combined rate is 6.00%. This applies to most retail purchases but rules on groceries, prescriptions, and services vary.

Maryland median effective property tax rate is 0.95% of home value. On a $400,000 home, that is roughly $3,800/year. Property tax typically funds schools, municipalities, and county services — rates vary sharply within a state by school district.

Maryland imposes BOTH a state estate tax (threshold: $5.0M) AND a state inheritance tax. This is unusual — only Maryland currently has both. Estate planning is critical.

In Maryland: Social Security is not taxed. Pensions and 401(k)/IRA withdrawals are partially taxed.

Maryland capital gains treatment: Taxed as regular income up to 5.75% state + county surtax. Compare to federal long-term capital gains rates (0%, 15%, or 20%) — some states offer preferential treatment for long-term holdings, while others tax capital gains as ordinary income.

Maryland gas tax is 47.1¢/gal — 7.1¢/gal higher than Oregon's 40.0¢/gal. For a 15,000 mile/year driver getting 25 mpg, each 1¢/gal of gas tax = about $6/year.

Maryland allows local income, occupational, or earnings taxes. All 23 counties and Baltimore City levy local income taxes of 2.25%-3.20% on top of state rate. Effective combined top rate ~8.95%. These are often overlooked but can add 1–3% to your effective rate.

Maryland residency rules: Domicile + 183-day rule. Six-month presumption. Home county determines local income tax. To establish residency for tax purposes, typical steps include: update driver's license and vehicle registration, register to vote, file a homestead declaration, close home-state bank accounts where possible, and spend clearly more than 183 days in your new state. If your former state is aggressive (e.g., CA, NY, NJ, OR), keep documentation of every day spent in each state.

Maryland recent tax law changes: Only state with both estate tax ($5M threshold) and inheritance tax (10% on distant relatives). 2025 added new 6.25%/6.5% brackets on income over $500K/$1M.

For the most current tax information in Maryland, visit the official source at https://www.marylandcomptroller.gov/. Tax laws change annually; verify rates and rules before making a permanent move. Consult a CPA for advice specific to your situation.