Maryland vs Virginia Taxes (2026)

Side-by-side comparison of income tax, property tax, sales tax, capital gains, and retirement treatment between Maryland and Virginia for tax year 2026. Use the calculator below to estimate how much you would save (or pay) after relocating.

TaxMarylandVirginia
State income tax (effective)5.75%5.75%
Long-term capital gains5.75%5.75%
Property tax (effective)1.06%0.81%
Combined sales tax6.00%5.77%
Retirement incomepartial-exemptss-exempt
Income systemprogressiveprogressive

Tax savings calculator

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$
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Estimated 2026 burden

Maryland total tax

$21,057

Virginia total tax

$21,057

Maryland state tax

$5,687

Virginia state tax

$5,687

Difference

+$0

Virginia saves you money

As % of income

0.00%

Federal tax is identical in both columns and excluded from the difference. Numbers use 2026 IRS brackets, state effective rates, and the 3.8% NIIT where applicable.

Relocation analysis

On these inputs, Maryland and Virginia produce roughly the same tax burden.

  • Property tax difference on a $400k home: $1,000/yr.
  • Sales tax difference on $50k of taxable spending: $115/yr.
  • Capital gains difference per $10k gain: $0.

Key differences

  • Maryland: Top 5.75% state + local piggyback up to 3.2%.
  • Virginia: Top 5.75% bracket; age deduction up to $12k for 65+.
  • Income system: Maryland is progressive, Virginia is progressive.
  • Retirement: Marylandpartial exempt; Virginiass exempt.

Recommended Tax Filing Software

Once you know what you owe, file with software built for your situation. We compare the top U.S. options below.

Editor's pick

TurboTax

Best overall guided experience

4.7·$0 – $129 federal
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H&R Block

Best for in-person backup

4.5·$0 – $115 federal
  • Free in-person review
  • Strong refund accuracy guarantee
  • Easy import from prior software
  • State filing adds up
File with H&R Block

TaxAct

Best value for self-employed

4.3·$0 – $99 federal
  • Cheaper than TurboTax/H&R
  • Strong Schedule C tools
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File with TaxAct

FreeTaxUSA

Best truly-free federal e-file

4.6·$0 federal / $14.99 state
  • Free federal filing for all forms
  • Cheap state filing
  • Supports complex situations
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File with FreeTaxUSA

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Comparison FAQs

It depends on income mix. Virginia has an effective income rate of 5.75% vs Maryland's 5.75%. Property tax (1.06% vs 0.81%) and sales tax can swing the answer.

Related resources

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