MARYLAND CAPITAL GAINS TAX · TAX YEAR 2026
Maryland capital gains tax calculator
Maryland taxes capital gains as ordinary income, at state rates from 2% to 6.5% plus county tax, and from 2025 through 2028 adds a 2% surtax on net capital gain when federal AGI is over $350,000. On a $50,000 long-term gain with $75,000 of wages, a single filer owes $4,152 of Maryland and Montgomery County tax and $7,500 of federal income tax, $11,652 in all, and keeps $38,348.
Tax on your gain
- Total tax on the gain
- $11,652.32
- Federal income tax
- $7,500.00
- Net investment income tax
- $0.00
- Maryland and Montgomery County tax
- $4,152.32
- After-tax gain
- $38,347.68
- Effective rate
- 23.30%
Maryland tax by size of gain
What a single filer with $75,000 of wages owes on a long-term gain, and the state tax if the same gain were short-term. Federal tax includes the net investment income tax. Maryland figures include Montgomery County tax.
| Gain | Federal tax | State tax | State tax if short-term |
|---|---|---|---|
| $10,000 | $1,500 | $795 | $795 |
| $50,000 | $7,500 | $4,152 | $4,152 |
| $100,000 | $15,000 | $8,554 | $8,554 |
| $250,000 | $42,250 | $21,783 | $21,783 |
| $1,000,000 | $208,920 | $111,946 | $91,946 |
Maryland capital gains tax questions
Does Maryland tax capital gains?
Yes. Maryland taxes capital gains as ordinary income, at state rates from 2% to 6.5% plus county tax, and from 2025 through 2028 adds a 2% surtax on net capital gain when federal AGI is over $350,000.
How much Maryland tax is due on a capital gain?
A single filer with $75,000 of wages owes $4,152 of Maryland and Montgomery County tax on a $50,000 long-term gain, 8.3% of the gain, and $21,783, 8.71%, on a $250,000 gain. Federal tax on the same gains is $7,500 and $42,250.
Does Maryland tax short-term capital gains differently?
Yes. A $1,000,000 short-term gain owes $91,946 of Maryland and Montgomery County tax, against $111,946 on a long-term gain. Federal tax on it is $373,330, against $208,920.
How does Maryland's 2% capital gains surtax work?
Once federal AGI, gain included, is over $350,000, Maryland adds 2% of the whole net capital gain, not just the part above the threshold. With $75,000 of wages, a $400,000 long-term gain owes $8,000 of surtax. A primary home sold for less than $1.5 million and retirement-plan assets are exempt from the 2% surtax.
What the calculator leaves out
- A primary home sold for less than $1.5 million and retirement-plan assets are exempt from the 2% surtax.
Federal tax stacks the gain on wages after the 2026 standard deduction, taxes a long-term gain at the long-term capital gains rates and a short-term gain at the ordinary brackets, and adds the net investment income tax. The gain is the only investment income. Capital losses and carryovers, qualified dividends, the collectibles and section 1250 rates, the alternative minimum tax and credits are left out; enter a home sale's gain after any federal exclusion.