Quick answer
A single freelancer in Maryland with $75,000 of profit pays about $2,945 of Maryland income tax in 2026 on top of about $15,495 of federal tax (self-employment tax of 15.3% on 92.35% of profit plus income tax), keeping about $56,560. At $50,000 the state bill is about $1,841; at $100,000, about $4,048. Every county adds an income tax of 2.25%–3.30% (about $2,000 at $75k profit), not included.
Maryland freelancers pay two income taxes on one return: the state’s graduated tax and a county income tax of 2.25% to 3.30%, which can cost nearly as much as the state tax. On top of that, since July 2025 many tech freelancers have to collect a new 3% sales tax. Here is how it all fits together.
How Maryland compares: in our 50-state take-home pay ranking, a single freelancer with $75,000 of profit keeps $56,560 in Maryland after federal and state income tax (before any local tax), 38th of 51 (state income tax: $2,945).
Set aside from every payment
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That is $0 of every $1,000 you receive
- Federal income tax share
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- Self-employment tax share
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- State tax share
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- Total to save this year
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Estimate for information only — not tax, legal or financial advice. Federal figures for tax year 2026; state and local taxes are not included unless you enter them. Check your situation with a CPA or enrolled agent.
Add the county tax and the picture changes. At a 3.20% county rate, the same freelancer owes about $2,019 more.
What you pay on freelance profit
| Tax | Rate |
|---|---|
| Federal self-employment tax | 15.3% on 92.35% of profit (12.4% part capped at $184,500 for 2026) |
| Federal income tax | 10%–37% |
| Maryland state income tax | 2%–6.5%; 4.75% for most freelancer incomes |
| County (or Baltimore City) income tax | 2.25%–3.30% of Maryland taxable income |
| Sales tax on IT and data services | 3% since July 1, 2025 |
The state tax
| Maryland taxable income (single) | Rate |
|---|---|
| Up to $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% |
Maryland starts from your federal adjusted gross income, so business expenses and the deduction for half of your self-employment tax carry over. A 2025 law reshaped the rest:
- The standard deduction is now a flat amount, indexed for inflation: $3,400 for a single filer in 2026.
- The personal exemption is $3,200, in full if your federal AGI is $100,000 or less. It shrinks above that.
- The same law added the 6.25% and 6.5% brackets and a 2% extra tax on net capital gains when federal AGI is over $350,000.
County income tax
Every Maryland county and Baltimore City adds a local income tax on your Maryland taxable income. You don’t file a separate return: the county tax goes on your state return and is included in your estimated payments. Selected 2026 rates:
| County | 2026 rate |
|---|---|
| Baltimore City, Baltimore County, Montgomery, Prince George’s, Howard, Allegany | 3.20% |
| Anne Arundel (single) | 2.70% up to $50,000, 2.94% to $400,000, 3.20% above |
| Frederick (single) | 2.25% up to $25,000, then 2.75%, 2.96% and 3.20% as income rises |
| Kent, Dorchester | 3.30% |
| Talbot | 2.40% |
| Worcester | 2.25% |
For 2026, counties can charge up to 3.30%. Allegany rose from 3.03% to 3.20%, and Kent from 3.20% to 3.30%.
Estimated payments
You must file a declaration of estimated tax if you expect your Maryland tax (state plus county) to be more than $500 above your withholding. The 2026 due dates are April 15, June 15 and September 15, 2026, and January 15, 2027. Instead of making the fourth payment, you can file your return and pay the balance by January 31, 2027.
Pay online through the Comptroller’s iFile, or by check with Form PV. If your income is rising, the Comptroller says to pay at least 110% of last year’s tax to avoid interest. Use the quarterly estimated tax calculator for the federal part.
The 3% sales tax on IT and data services
Since July 1, 2025, Maryland charges a 3% sales tax on data, information technology and software publishing services. The services covered include custom computer programming, computer software consulting, custom webpage design and custom search engine optimization. Software-as-a-service sold to individuals is a digital product taxed at 6%.
What counts is the service you actually provide, not your business’s NAICS code, and a contract clause saying you won’t charge tax doesn’t change that. If you do this kind of work for Maryland clients, check the Comptroller’s Technical Bulletin No. 56 and register to collect sales tax.
Sole proprietor vs LLC
- A sole proprietor or single-member LLC taxed as a sole proprietor reports business income on the personal Maryland return (Form 502), county tax included.
- Maryland LLCs file an Annual Report and Personal Property Return with the State Department of Assessments and Taxation (SDAT) by April 15 each year. The fee for most LLCs is $300. Not filing can cost the LLC its right to do business in Maryland.
- An S corp election doesn’t avoid the county tax on what you take home, but it can still cut federal payroll tax.
How much to set aside in Maryland
In the tax set-aside calculator, add the 4.75% state rate to your county rate. For a 3.20% county that’s 7.95 in the state field. Set aside 3% sales tax separately if you sell taxable IT services.
Frequently asked questions
Do Maryland freelancers pay county income tax?
Yes. Every Maryland county and Baltimore City adds a local income tax of 2.25% to 3.30% on your Maryland taxable income for 2026. It goes on your state return and is included in your estimated payments, so there's no separate local filing.
Does Maryland charge sales tax on IT services?
Yes. Since July 1, 2025, Maryland charges a 3% sales tax on data, IT and software publishing services, including custom programming, software consulting, custom webpage design and custom SEO. What counts is the service you actually provide, not your NAICS code.
When are Maryland estimated tax payments due?
April 15, June 15 and September 15, 2026, and January 15, 2027, if you expect state plus county tax to exceed withholding by more than $500. Instead of the fourth payment, you can file your return and pay the balance by January 31, 2027.
How much is the Maryland LLC annual report fee?
$300 for most LLCs. Maryland LLCs file an Annual Report and Personal Property Return with SDAT by April 15 each year. Not filing can cost the LLC its right to do business in Maryland.