Maryland Retirement Income Tax 2025
See how Maryland treats Social Security, private pensions, annuities, and IRA distributions for a full-year resident, then run the official-source estimate with your own income.
Social Security
Social Security benefits are subtracted from Maryland income.
Pension and IRA income
At age 65+ or when totally disabled, a qualifying pension exclusion may apply.
Estimated 2025 state tax
$2,028Resident return; local taxes and unmodeled credits excluded.
Modeled state taxable income
$43,800Retirement-income subtraction
$36,200Social Security benefits are subtracted from Maryland income.
At age 65+ or when totally disabled, a qualifying pension exclusion may apply.
Scope: IRA distributions, military retirement, and public-safety retirement are not qualifying pension income here. The disability eligibility path is not modeled. With two qualifying spouses, each spouse’s allowance is reduced by that spouse’s own Social Security and applied to that spouse’s own pension, based on the spouse shares you enter.
Maryland worked example
For a single filer age 68 with $80,000 of federal AGI, including $15,000 of federally taxable Social Security, $30,000 of pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income:
Retirement subtraction
$36,200
Modeled state taxable income
$43,800
Estimated 2025 state tax
$2,028
This is an illustration, not a tax return. Local taxes, credits, and unmodeled state adjustments are excluded.
What this model does not include
IRA distributions, military retirement, and public-safety retirement are not qualifying pension income here. The disability eligibility path is not modeled. With two qualifying spouses, each spouse’s allowance is reduced by that spouse’s own Social Security and applied to that spouse’s own pension, based on the spouse shares you enter. Review the official instructions before filing.
Review the full Maryland income tax guide →Maryland retirement income tax FAQs
Does Maryland tax Social Security benefits in 2025?
Social Security benefits are subtracted from Maryland income.
Does Maryland tax pensions and IRA withdrawals?
At age 65+ or when totally disabled, a qualifying pension exclusion may apply.
What does the Maryland retirement tax example include?
The example uses a single filer age 68 with $80,000 of federal AGI, $15,000 of federally taxable Social Security, $30,000 of private pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income.
Is this a complete Maryland resident return?
No. The estimate focuses on retirement-income treatment and the state rate schedule. It excludes local income tax and does not reproduce every deduction, credit, addition, subtraction, or special pension rule. IRA distributions, military retirement, and public-safety retirement are not qualifying pension income here. The disability eligibility path is not modeled. With two qualifying spouses, each spouse’s allowance is reduced by that spouse’s own Social Security and applied to that spouse’s own pension, based on the spouse shares you enter.
Sources
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