MARYLAND RETIREMENT INCOME TAX · TAX YEAR 2026
Does Maryland tax Social Security and retirement income?
Maryland does not tax Social Security benefits. From age 65, Maryland excludes up to $40,600 (reported for 2026) of pension and 401(k) income, less Social Security received, and taxes IRA withdrawals. A single 67-year-old with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals pays no Maryland income tax for 2026. Maryland figures include Montgomery County tax.
Your estimate
- Maryland income tax
- $0.00
- Federal income tax
- $1,810.00
- Total income tax
- $1,810.00
Subtracted from Maryland income
- Social Security
- $11,300.00
- Pension exclusion (65+)
- $16,600.00
- Age 65 exemption
- $1,000.00
Maryland credits
- Senior tax credit
- $412.58
Maryland figures include Montgomery County tax.
Not yet published for 2026: Pension exclusion maximum $40,600 (reported for 2026); Senior tax credit $1,000 (latest published, 2025).
The IRA input is treated as a traditional IRA, which does not qualify; 401(k), 403(b) and 457(b) payouts would. The public safety ($15,000) and ranger subtractions are not modeled.
Maryland tax at different retirement incomes
Maryland income tax for 2026 on a single 67-year-old with $24,000 of Social Security, and on a married couple, both 67, with $20,000 each. Half the pension and IRA income is a private pension and half IRA withdrawals, all received by one spouse in the couple. Maryland figures include Montgomery County tax.
| Pension and IRA income | Single | Married |
|---|---|---|
| $20,000 | $0 | $0 |
| $40,000 | $208 | $0 |
| $60,000 | $1,798 | $129 |
| $100,000 | $5,978 | $3,309 |
| $150,000 | $10,222 | $9,034 |
Does Maryland tax Social Security?
No. Social Security and railroad retirement benefits are exempt from Maryland tax, and any part included in federal adjusted gross income is subtracted.
Of the single 67-year-old's $24,000 in benefits, $11,300 is federally taxable and Maryland taxes none of it. Of the couple's $40,000, $28,100 is federally taxable and Maryland taxes none of it.
Does Maryland tax pensions?
Partly. At 65 or older, or if totally disabled, you can exclude up to $40,600 (reported for 2026) of pension, 401(k), 403(b) and 457(b) income, less all the Social Security you received, taxable or not. On a joint return each spouse figures it on their own pension and Social Security. Military retirees can subtract up to $12,500 of retirement pay, or $20,000 at 55 or older. Other retirement income is taxed at the state and county rates.
State tax for a single 67-year-old with $24,000 of Social Security, a $20,000 pension of each type and $10,000 of IRA withdrawals. Excluded is the part of the pension Maryland exempts.
| Pension | Excluded | State tax |
|---|---|---|
| Private | $16,600 | $0 |
| Maryland government | $16,600 | $0 |
| Federal civil service | $16,600 | $0 |
| Military | $20,000 | $0 |
Does Maryland tax IRA and 401(k) withdrawals?
Yes. Traditional and rollover IRA withdrawals are taxed, because IRAs do not qualify for the pension exclusion. 401(k), 403(b) and 457(b) payouts are treated as pensions and do qualify from 65.
With $24,000 of Social Security, $20,000 of IRA withdrawals and no other income, a single 67-year-old pays no Maryland income tax for 2026.
At what age do retirement tax breaks start in Maryland?
At 65, for the pension exclusion, an extra exemption for each person 65 or older, and the senior tax credit: $1,000 (latest published, 2025) for a single filer, or $1,750 on a joint return when both are 65 or older, with federal AGI up to $100,000 ($150,000 joint or head of household). Military retirement pay gets the larger subtraction from 55.
State tax at each age where the rules change. The single filer has $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals; the couple, both that age, has $20,000 of Social Security each and a $30,000 pension and $20,000 of IRA withdrawals.
| Age | Single | Married |
|---|---|---|
| 64 | $1,812 | $2,881 |
| 65Pension exclusion (65+), Age 65 exemption, Senior tax credit | $0 | $0 |
What the calculator leaves out
The IRA input is treated as a traditional IRA, which does not qualify; 401(k), 403(b) and 457(b) payouts would. The public safety ($15,000) and ranger subtractions are not modeled.
- The exemption chart inside the Maryland formula is measured on income after retirement subtractions rather than federal AGI.
- Married filing separately uses the single senior tax credit.
The calculator uses Maryland rules from the 2025 forms and instructions, the latest published.
Figures not yet published for 2026
- Pension exclusion maximum: $40,600 (reported for 2026). Reported for 2026 (Comptroller guidance via Bloomberg Tax); the 2025 worksheet's $41,200 is the latest on an official page.
- Senior tax credit: $1,000 (latest published, 2025). $1,750 joint (both 65+); AGI up to $100,000 or $150,000; 2026 availability not confirmed.
Federal tax uses the 2026 brackets, the standard deduction with the extra amount at 65, and the $6,000 senior deduction. Estimates assume no other deductions, credits or local taxes except as noted.