Capital Gains Tax for Maryland (2026)
Maryland (MD) Key Facts
State Capital Gains Rate
5.75%
Taxed As
Ordinary income
Federal Rate Applies
Yes (0%, 15%, or 20%)
Long Term vs Short Term
Both taxed at state level
How This Calculator Works in Maryland
This calculator estimates your combined federal and Maryland capital gains tax. Enter your gain amount, holding period, and income to see your estimated tax.
Maryland Overview
Maryland taxes capital gains as ordinary income at up to 5.75%, plus county surcharges of 2.25% to 3.2%. Federal capital gains taxes also apply, with long-term rates of 0%, 15%, or 20% depending on income. The combined state and federal burden should be considered when planning asset sales or investment strategies.
How Maryland Compares
Maryland's capital gains rate of 5.75% compares to Virginia at 5.75% and Pennsylvania at 3.07%. State capital gains taxes significantly impact net investment returns.
| State | Top Rate | Notes |
|---|---|---|
| Virginia | 5.75% | Virginia has a capital gains rate of 5.75%. |
| Pennsylvania | 3.07% | Pennsylvania has a capital gains rate of 3.07%. |
| Delaware | 6.6% | Delaware has a capital gains rate of 6.6%. |
Maryland's capital gains rate of 5.75% compares to a national average of approximately 5.04%. This is above the national average.
Tips for Maryland Residents
- 1Maryland taxes capital gains as ordinary income at up to 5.75%, plus county surcharges of 2.25% to 3.2%.
- 2Federal long-term gains (held 1+ year) are taxed at 0%, 15%, or 20%. Maryland's state tax applies on top of the federal rate.
- 3Hold investments over one year to qualify for lower federal long-term rates rather than ordinary income rates.
- 4Tax-loss harvesting—selling losing investments to offset gains—reduces both federal and Maryland state capital gains tax.
- 5Consider the combined federal + state rate when planning large asset sales. The total can exceed 29.6% for high earners.