Maryland Capital Gains Tax Calculator
Maryland taxes capital gains as ordinary income at the state level, which means a gain on selling shares, property or other investments is added to your other income and taxed using the Maryland income tax brackets, with no separate preferential long-term rate like the federal system provides. This calculator estimates the Maryland state tax on a capital gain by stacking the gain on top of your other taxable income and applying the sourced Maryland Comptroller brackets for tax year 2024, then taking the difference. Enter your gain, your other annual taxable income and your filing status to see the state tax attributable to the gain and the effective rate on it. The result is the Maryland state portion only; federal capital gains tax, which has separate short-term and long-term rates set by the IRS, is calculated separately. Because the gain stacks on your other income, the same gain is taxed at a higher rate the more you already earn. Some states provide specific exclusions or preferential treatment for certain gains; this tool uses the standard ordinary-income method and links the Maryland Comptroller so you can confirm any special rule that applies to you.
Maryland taxes capital gains as ordinary income. A $20,000.00 gain on top of $60,000.00 of other income (single) adds about $0.00 in Maryland state tax, an effective rate on the gain of 0.00%.
How Maryland taxes capital gains
Maryland taxes capital gains as ordinary income, so the gain is added to your other income and taxed at the Maryland bracket rates.
state tax on gain = state income tax on (other income + gain) - state income tax on (other income)
effective rate on gain = state tax on gain / gain x 100
Maryland capital gains tax: frequently asked questions
How are capital gains taxed in Maryland?
Maryland taxes capital gains as ordinary income at the state level: the gain is added to your other taxable income and taxed using the Maryland income tax brackets published by the Maryland Comptroller. This calculator applies those brackets to your gain. Some states provide specific exclusions or rates for particular gains; confirm your situation with the Maryland Comptroller.
How much state tax will I pay on a $20,000.00 capital gain in Maryland?
Stacked on $60,000.00 of other income, a $20,000.00 gain adds about $0.00 of Maryland state income tax for a single filer, an effective rate on the gain of 0.00%. Your figure depends on your total income and filing status; enter them above.
Does Maryland have a separate long-term capital gains rate?
Most states, including the default treatment here, tax long-term and short-term capital gains at the same ordinary income rates, unlike the federal system which has preferential long-term rates. Any state-specific exclusion or preferential rate is set by the Maryland Comptroller; this calculator uses the ordinary income method and links the source.
What is the local income tax in Maryland?
Maryland counties and Baltimore City impose a local piggyback income tax in addition to the state tax. Local rates range from 2.25% (several counties) to 3.2% (several counties including Montgomery and Prince George's). You pay local tax based on your county of residence on the last day of the tax year. Local rates are listed on the Maryland Comptroller's website.
How does Maryland's standard deduction work?
Maryland's standard deduction equals 15% of your Maryland adjusted gross income. For 2024, it is capped at $2,550 for single filers, married filing separately, and head of household, and at $5,150 for married filing jointly. There is also a minimum: $1,600 for single/MFS/HOH and $3,200 for MFJ. Most taxpayers with moderate income will be at or near the maximum.
Do I pay Maryland tax if I live in DC or Virginia but work in Maryland?
Maryland has reciprocity agreements with DC, Virginia, West Virginia, and Pennsylvania. Residents of those jurisdictions who work in Maryland pay income tax only to their home jurisdiction. Maryland residents working in those jurisdictions pay Maryland tax. Confirm your employer is withholding for the correct state.
Are retirement distributions taxable in Maryland?
Maryland offers a pension exclusion for certain retirement income. Residents 65 or older, or totally disabled, may exclude up to a set amount of pension and retirement income from Maryland taxable income. The exclusion amount is updated periodically. See the Maryland Comptroller's website for current figures.
Official sources
- Maryland income tax rates applied to capital gains (tax year 2024): Maryland Comptroller, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the Maryland Comptroller.