Maryland vs Pennsylvania: Which State Keeps More Money in Your Pocket?
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 Comparing 5.75% to 3.07% yields roughly $2,010 difference per year on $75,000. Pennsylvania offsets taxes through stability. While government workers favor Pennsylvania's lower burden, traditionalists frequently value Maryland's offerings in cultural amenities more highly.
Maryland and Pennsylvania take different approaches to income tax—5.75% compared to 3.07%. Run the math on $75,000, and you're looking at around $2,010 yearly variance. Of course, taxes are just one piece of the relocation puzzle.
🔑 Key Differences
- **State income tax**: Maryland at 5.75% vs Pennsylvania at 3.07%
- **Annual savings** (on $75,000): Pennsylvania saves you ~$2,010
- **Tax system**: Both use progressive brackets
- **Deductions**: Standard federal deductions apply, state variations exist
- **Local taxes**: Check your specific county/city as rates vary within states
Tax Comparison
| Tax Type | Maryland | Pennsylvania |
|---|---|---|
| State Income Tax | 2% - 5.75% | 3.07% |
| 💰 On $40,000 Salary |
State Tax: $1,550
Take Home: $38,450
|
State Tax: $1,228
Take Home: $38,772
+$322
|
| 💰 On $60,000 Salary |
State Tax: $2,325
Take Home: $57,675
|
State Tax: $1,842
Take Home: $58,158
+$483
|
| 💰 On $100,000 Salary |
State Tax: $3,875
Take Home: $96,125
|
State Tax: $3,070
Take Home: $96,930
+$805
|
| Cost of Living | Maryland costs split dramatically by region. Montgomery and Howard counties near DC command extreme prices - median home values often exceed $500,000, with monthly rent for decent apartments running $2,000-2,500. Baltimore offers better value despite city challenges. Southern Maryland provides moderate costs with convenient DC access. Eastern Shore delivers genuine affordability. Property taxes run high statewide, particularly in counties with strong schools. The cost variation means identical six-figure salaries deliver vastly different lifestyles - Montgomery County requires substantially higher income for comfortable living than Baltimore or Southern Maryland, despite all paying the same state tax rates. | Pennsylvania costs split dramatically. Philadelphia housing demands substantial income - median prices often exceed $300,000-400,000 in desirable areas. Pittsburgh offers better value despite renaissance. Suburbs surrounding major cities command premium pricing. Smaller cities like Allentown, Erie, and Scranton provide genuine affordability. Central Pennsylvania delivers excellent value. Property taxes run high statewide. No sales tax on clothing and groceries helps families. Overall, costs vary from expensive (Philadelphia) to affordable (central PA). |
Pros & Cons
Maryland
✓ Advantages
- Proximity to Washington DC job market
- Strong biotechnology and healthcare sectors
- Excellent education systems
- Access to both cities and beaches
- Diverse economy with government contracting
⚠ Considerations
- High state income tax (up to 5.75%) plus county taxes
- Very high cost of living near DC
- Traffic congestion in metro areas severe
- High property taxes in many counties
- Combined state and local taxes burden significant
Pennsylvania
✓ Advantages
- Flat 3.07% state income tax is simple and predictable
- No state tax on retirement income benefits retirees
- Strong healthcare and education sectors provide stable employment
- Pittsburgh offers urban amenities at reasonable costs
- Historical cities with cultural attractions
⚠ Considerations
- Philadelphia imposes additional 3.79% city wage tax
- Property taxes can be high in some areas
- Cold winters with significant heating costs
- Some infrastructure challenges in older cities
- Sales tax at 6% plus 1-2% in some localities
Bottom Line
On pure tax math, Pennsylvania comes out ahead by about $2,010 per year at $75,000 (3.07% versus 5.75%). Maryland makes up ground through stability, which matters considerably to many people. The right choice depends on whether you prioritize direct savings or value what Maryland offers in {factor} and overall lifestyle.📢 Share This Comparison
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