# Maryland vs. Virginia vs. Washington, DC Taxes: 2026 Update By Brian Martucci (@brianmartucci) · Published 2026-11-03 Canonical: https://voce.com/@brianmartucci/maryland-virginia-washington-taxes-2026-update-ly1t5k --- Is there a big difference in tax rates in Maryland, Washington DC, and Virginia? They are all geographically very close to each other. It is not uncommon for homebuyers to consider all three areas when looking for a new home. One consideration beyond neighborhoods, commute time, and schools is taxes. All kinds of taxes! This article provides a comprehensive comparison of tax rates across various categories in Maryland, Washington DC, and Virginia. I’ll review income tax, sales tax, property tax, corporate tax, and estate tax. This analysis aims to shed light on the differences and similarities in tax rates among these jurisdictions. It will help readers make informed decisions regarding their home purchase and financial planning. _Updated October 18, 2026. Tax rates and exemptions below identify the applicable year where relevant. Actual taxes depend on filing status, deductions, property location, eligibility for tax benefits and other circumstances. All information subject to change as tax rates change over time. Double check your own sources at the time of reading._ ## Income Tax Rates Comparison ### **Maryland Income Tax Rates** [**Maryland’s income tax rates**](https://www.marylandtaxes.gov/individual/income/tax-info/tax-rates.php) range from 2% to 6.5%, depending on taxable income and filing status. Maryland residents also pay a county income tax, generally ranging from 2.25% to 3.30%. Montgomery County’s 2026 rate is 3.20%. A single filer with $150,000 of taxable income would be taxed $5,947.50 plus 5.25% of the excess over $125,000. The difference between $125,000 and $150,000 = $25,000 So take $25,000 x 5.25% = $1,312.50 Your final tax bill for Maryland state income taxes is $5,947.50 + $1,312.50 = $7,260. $7,260 represents 4.84% on $150,000 in taxable income. However, **among these three jurisdictions, Maryland is unique in imposing county income taxes in addition to state income taxes.** Those county taxes generally range from 2.25% to 3.30%. So you need to add that tax to the 4.84% to get a truer sense of the tax burden. In Montgomery County MD this could mean **3.2% for the county + 4.84% for the state of MD = 8.04%** ### **Washington DC Income Tax Rates** [**Washington DC’s income tax rates**](https://otr.cfo.dc.gov/page/dc-individual-and-fiduciary-income-tax-rates) range from 4% to 10.75%. Washington, DC uses graduated tax brackets, meaning different portions of income are taxed at different rates. **DC taxable income** **Rate** First $10,000 4.0% $10,001–$40,000 6.0% $40,001–$60,000 6.5% $60,001–$250,000 8.5% Assuming a single filer has **$150,000 of taxable income**: - First $10,000 × 4% = **$400** - Next $30,000 × 6% = **$1,800** - Next $20,000 × 6.5% = **$1,300** - Remaining $90,000 × 8.5% = **$7,650** - Total estimated DC income tax: **$11,150** - Effective DC income-tax rate: **7.43% of taxable income** ### **Virginia Income Tax Rates** [**Virginia’s income tax rates**](https://www.tax.virginia.gov/sites/default/files/2016-12/TAXTABLE.pdf) also charge a fee based on income range. Virginia’s individual income tax rates range from 2% to 5.75%. For taxable income exceeding $17,000, the calculation is $720 plus 5.75% of the amount above $17,000. The $720 represents the tax on the first $17,000 of taxable income; it is not an additional fee. A single filer with $150,000 of taxable income would be taxed  $720, plus 5.75% of the excess over $17,000. The difference between $17,000 and $150,000 = $133,000 So take $133,000 x 5.75% = $7,647.50 Your final tax bill for Virginia income taxes is $720 + $7,647.5 = $8,367.50. $8,367.50 represents 5.58% on $150,000 in taxable income. Maryland = 4.84% + 3.2% estimated for county = 8.04% Washington DC = 7.43% Virginia = 5.58% **CONCLUSION – INCOME TAXES** For a single filer with $150,000 of taxable income, the estimated income taxes are: **Location** **Estimated annual income tax** **Effective rate** Montgomery County, Maryland, including state and county income taxes $12,060 8.04% Washington, DC $11,150 7.43% Virginia $8,367.50 5.58% In this example, Virginia has the lowest income tax and Montgomery County has the highest. These calculations assume $150,000 of taxable income in each jurisdiction, before tax credits. They do not necessarily represent the taxes owed by three people earning the same salary, because deductions and other tax rules differ. ## Sales Tax Rates Comparison ### **Maryland Sales Tax Rates** Maryland’s general sales tax rate is 6%. It applies to most retail goods and specified taxable services, with exemptions and special rates for certain purchases. For example, a taxable $300 clothing purchase would generate: **$300 × 6% = $18 in sales tax** Services are not all taxed alike. Certain data, information technology and software publishing services are subject to a separate 3% sales tax. ### **Washington DC Sales Tax Rates** Washington, DC’s general sales tax rate remains 6% through September 30, 2027. The planned increase to 7% was postponed. A taxable $300 clothing purchase would generate: **$300 × 6% = $18 in sales tax** Special rates apply to certain purchases, including restaurant meals, hotels and parking. ### **Virginia Sales Tax Rates** Virginia’s general sales tax rate varies by location. Most locations charge 5.3%, while Northern Virginia generally charges 6%. Additional regional or local taxes apply in certain other areas. A taxable $300 clothing purchase in Arlington would generate: **$300 × 6% = $18 in sales tax** ### **Conclusion: Sales Taxes** As of October 18, 2026, the general sales tax rate is 6% in Maryland, Washington, DC and Northern Virginia. For an ordinary taxable $300 clothing purchase, the sales tax would therefore be $18 in each location. The comparison can differ for groceries, meals, lodging, services and other purchases subject to exemptions or special rates. ## Property Tax Rates Comparison ### **Maryland Property Tax Rates** Maryland property taxes depend on the property’s county, municipality and applicable taxing districts. A complete estimate must include the state tax, county taxes and any municipal or special district taxes. A county’s general tax rate alone does not necessarily represent the full amount a homeowner pays. **Rockville Property-Tax Example** For fiscal year 2027, covering July 1, 2026 through June 30, 2027, a residential property within the City of Rockville can have the following combined rates: **Tax component** **Rate per $100 of taxable assessment** **Equivalent percentage** Maryland state property tax $0.112 0.112% Combined county property taxes applicable to this example $0.921 0.921% City of Rockville property tax $0.292 0.292% **Combined rate** **$1.325** **1.325%** Assuming an $800,000 taxable assessment for each component: - State tax: $800,000 × 0.112% = **$896** - County taxes: $800,000 × 0.921% = **$7,368** - City tax: $800,000 × 0.292% = **$2,336** **Total estimated annual property tax: $10,600** This example is before tax credits and separate charges, such as refuse or stormwater fees. A Rockville mailing address does not necessarily mean the property is within the City of Rockville. Maryland’s Homestead Tax Credit limits assessment increases used to calculate taxes on eligible owner-occupied homes. The state limit is 10%, and local jurisdictions may use lower limits. Eligibility requirements apply, and a buyer should not assume the seller’s tax credits will carry over. ### **Washington DC Property Tax Rates** For the $800,000 residential example below, Washington, DC’s property-tax rate is $0.85 per $100 of assessed value, equivalent to 0.85%. For tax year 2026, eligible owner-occupants can receive a Homestead Deduction of $91,950. An application and approval are required. Assuming an $800,000 assessment and the full annual deduction: **$800,000 − $91,950 = $708,050** **$708,050 × 0.85% = $6,018.43 in estimated annual property tax** This calculation excludes other credits, assessment-cap benefits and separate charges. Confirm the applicable year’s deduction when preparing a closing-cost estimate. ### **Virginia Property Tax Rates** Virginia real-estate taxes vary by county or independent city. Additional town or district taxes and separate charges may apply. Fairfax County’s 2026 base real-estate tax rate is $1.12 per $100 of assessed value, equivalent to 1.12%. Fairfax County and the independent City of Fairfax have separate tax rates. On an $800,000 taxable assessment: **$800,000 × 1.12% = $8,960 annually in Fairfax County base real-estate tax** Arlington County’s 2026 real-estate tax rate is $1.053 per $100 of assessed value, equivalent to 1.053%. On an $800,000 taxable assessment: **$800,000 × 1.053% = $8,424 annually** These examples are before applicable tax relief and separate charges. ### **Conclusion: Property Taxes** Using the rates and assumptions above: **Location** **Taxable assessment before the DC deduction** **Estimated annual property tax** City of Rockville, Maryland $800,000 $10,600 Washington, DC, with the full 2026 Homestead Deduction $800,000 $6,018.43 Fairfax County, Virginia—base tax only $800,000 $8,960 Arlington County, Virginia $800,000 $8,424 Washington, DC has the lowest estimated property tax in these examples. However, the results should not be treated as a statewide ranking. Before buying, compare the specific property’s taxing jurisdiction, assessed value, available tax benefits and separate charges. An $800,000 purchase price does not necessarily mean the property has an $800,000 taxable assessment. ## Corporate Tax Rates Comparison ### **Maryland Corporate Tax Rates** In Maryland, the corporate tax rate is 8.25%. ### **Washington DC Corporate Tax Rates** In Washington DC, the corporate tax rate is 8.25%. ### **Virginia Corporate Tax Rates** Virginia has a flat corporate income tax rate of 6%, making it a more tax-friendly option for corporations. **CONCLUSION – CORPORATE TAXES** Virginia comes in lowest, with Maryland and Washington DC being higher, and the same. ## **Estate and Inheritance Tax Rates Comparison** ### **Maryland Estate and Inheritance Taxes** Maryland’s estate-tax exclusion is $5 million per individual. Maryland calculates estate tax using a formula based on the federal credit for state death taxes. The calculation is subject to a limit of 16% of the amount by which the taxable estate exceeds the applicable Maryland exclusion. Deductions, elections and other adjustments can affect the result. Maryland permits portability of a deceased spouse’s unused exclusion in qualifying circumstances. This can potentially allow a married couple to use up to $10 million in combined exclusions, but the required estate-tax return and election must be completed. Maryland also imposes a separate inheritance tax of 10% on transfers to certain beneficiaries, including many nieces, nephews, cousins and unrelated individuals. Transfers to a spouse, children, grandchildren, parents and siblings are generally exempt, along with other qualifying transfers. The $5 million estate-tax exclusion does not exempt an otherwise taxable inheritance from Maryland’s separate inheritance tax. When both taxes apply, Maryland generally provides an adjustment for inheritance tax paid. ### **Washington DC Estate Tax Rates** For individuals who die during calendar year 2026, Washington, DC’s estate-tax exclusion is $4,988,400. DC estate-tax rates range from 11.2% to 16%, depending on the taxable estate. The exclusion is adjusted periodically, so use the amount applicable to the year of death. Estate value, allowable deductions and other adjustments determine whether tax is due and how much must be paid. ### **Virginia Estate Tax Rates** Virginia currently imposes neither a state estate tax nor an inheritance tax. Federal estate-tax rules can still apply. ### **Conclusion: Estate and Inheritance Taxes** Virginia has the lowest state-level estate and inheritance tax burden among these three jurisdictions because it currently imposes neither tax. Maryland has a $5 million estate-tax exclusion and a separate inheritance tax affecting certain beneficiaries. Washington, DC’s estate-tax exclusion is $4,988,400 for deaths in 2026. For households approaching these thresholds, estate planning can materially affect the outcome. An estate-planning attorney or tax professional can evaluate the applicable exclusions, deductions and filing requirements. ## **Key Takeaways** Where you live is very personal. I don’t know that there is enough variance in the above analysis to make someone want to live in one area over another. I believe most people choose a place to buy a home based on community, commute, school district, family, and other more personal reasons. Virginia stands out as having a lower corporate tax rate, while also not imposing an estate tax. Maryland and Washington DC, on the other hand, have varying tax rates that may impact your financial decisions. Think things through carefully to determine the best strategy for your specific situation. In conclusion, exploring the tax rates in Maryland, Washington DC, and Virginia reveals the diverse fiscal landscapes that shape each area. By recognizing the variations in tax policies and rates, individuals and organizations can better navigate the financial implications of residing or operating a business in these regions. Tax rates can change at any time. Talk to a financial professional as needed to help you decide. And always [**talk to**](https://www.getloans.com/connect/schedule-a-call/) an [**experienced**](https://www.getloans.com/about/reviews/) mortgage loan officer who will help you understand your mortgage options, once you decide where you want to live!