Maryland variant. This is a Maryland-specific version of the Stock Sale Capital Gains Tax Estimator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Stock Sale Capital Gains Tax Estimator.
Most states tax capital gains as ordinary income. In Maryland, that means a top rate of 5.75% on gains.
Capital gains tax in Maryland
Federally, long-term gains are taxed at 0%, 15%, or 20% depending on income, plus a possible 3.8% net investment income tax. Maryland then taxes the same gains as ordinary income at up to 5.75%.
Short-term gains (assets held under a year) are taxed as ordinary income at both levels - usually the most expensive outcome.
About taxes and housing in Maryland
Maryland combines a state income tax with mandatory county income taxes, so the combined rate varies significantly by where you live.
Maryland's property taxes are near the national average and include both state and county components.
Maryland consistently ranks among the highest in median household income, driven by federal government, biotech, and defense employment near Washington, D.C.
Worked example: $50,000 long-term gain
A $50,000 long-term gain: federal 15% = $7,500, plus Maryland state tax up to 5.75% = $2,875, for a combined bill near $10,375.
Quick reference
- State income tax: 2-5.75% plus county tax (up to 3.2%)
- State sales tax: 6% (plus 0.00% avg local)
- Median home value: $425,000
- Median household income: $98,461
- Effective property tax rate: 1.02%
- Avg auto insurance: $1,640/yr
Frequently Asked Questions
Does Maryland tax capital gains?
Yes - Maryland taxes capital gains as ordinary income at up to 5.75%.
What's the difference between short and long-term gains?
Assets held over a year get preferential long-term federal rates (0/15/20%); shorter holds are taxed as ordinary income.