MD · Tax Year 2026
How Maryland taxes Social Security, pensions, 401(k)/IRA withdrawals, and military retirement pay in 2026.
Up to $40,600 qualifying employee-plan exclusion less Social Security; military $12,500 under 55/$20,000 age 55+
General pension exclusion age 65+ or qualifying disability
Additional Notes
401(k) may qualify; IRA/SEP/Keogh generally do not; local income taxes additional
Does Maryland tax Social Security benefits?
No. Maryland does not tax Social Security retirement benefits.
Does Maryland tax pension income?
Partially. Maryland provides exemptions for certain types of pension income — often public, government, or military pensions — while private pensions may be partially or fully taxable. See eligibility details above.
Does Maryland tax 401(k) and IRA withdrawals?
Yes, traditional 401(k) and IRA withdrawals are generally taxable in Maryland. However, exclusions or credits may apply depending on your age and income — review the details above.
Is Maryland a tax-friendly state for retirees?
It depends on your income mix. Maryland offers some retirement income relief, but the rules vary by income type and eligibility. Review the details above and consider consulting a tax professional for your specific situation.
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Data Source
Official Maryland state tax authority guidance. Tax year 2026. Some annually indexed thresholds may not yet be finalized — confirm with the state revenue department before filing.
Related for Maryland
Data reflects tax year 2026 rules sourced from official Maryland state tax authorities. This page is for informational purposes only — always confirm current rules with the state revenue department or a qualified tax professional before making financial or relocation decisions.