Maryland Capital Gains Tax (2026)
Maryland taxes capital gains as ordinary income on a graduated scale from 2% up to a top rate of 6.5%. Run your own numbers with the free capital gains tax calculator, which estimates federal, NIIT, and Maryland tax together.
In short: federal long-term rates of 0%, 15%, or 20% apply everywhere. Maryland adds state tax on top, at up to 6.5%.
How Maryland treats capital gains
Maryland taxes capital gains as ordinary income on a graduated scale from 2% up to a top rate of 6.5%. The estimate subtracts Maryland's standard deduction ($3,350 single / $6,700 married).
Parts of Maryland also levy local income taxes that are not included in these estimates.
2026 Maryland income tax brackets
| Taxable income | Rate |
|---|---|
| $0 – $1,000 | 2% |
| $1,000 – $2,000 | 3% |
| $2,000 – $3,000 | 4% |
| $3,000 – $100,000 | 4.75% |
| $100,000 – $125,000 | 5% |
| $125,000 – $150,000 | 5.25% |
| $150,000 – $250,000 | 5.5% |
| $250,000 – $500,000 | 5.75% |
| $500,000 – $1,000,000 | 6.25% |
| Over $1,000,000 | 6.5% |
Single-filer taxable income. Married thresholds are doubled.
A worked example
Say you are a single filer in Maryland with $60,000 of taxable income who sells stock held over a year for a $25,000 long-term gain. Federal tax on the gain is $3,750 (all of it lands in the 15% bracket at this income; no NIIT applies below $200,000 MAGI). Maryland adds an estimated $1,188, for a combined $4,938, an effective 19.8% on the gain. These figures use the same math as the calculator, 2026 federal brackets per IRS Rev. Proc. 2025-32, and state figures from the Tax Foundation's State Individual Income Tax Rates and Brackets, 2026.
Frequently asked questions
Does Maryland tax capital gains?
Yes. Maryland taxes capital gains as ordinary income. Maryland taxes capital gains as ordinary income on a graduated scale from 2% up to a top rate of 6.5%.
What will I pay on a long-term gain in Maryland?
Combined, our worked example ($25,000 long-term gain on $60,000 of income, single) comes to $4,938: $3,750 federal plus $1,188 Maryland tax, an effective 19.8%.
Do I still owe federal capital gains tax in Maryland?
Yes. Federal capital gains tax (0%, 15%, or 20% long-term, ordinary rates short-term, plus the 3.8% NIIT for high earners) applies no matter your state. The free calculator estimates federal, NIIT, and Maryland tax together.
More
- Every state's capital gains treatment
- Capital gains tax explained: short-term vs long-term
- Neighbors alphabetically: Maine · Massachusetts
This page is general information, not tax, legal, or financial advice. Rates and rules can change and depend on your situation. Confirm details with a tax professional, the IRS, or your state's revenue department.
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