Maryland After-Tax Yield Calculator
What a savings account or CD keeps after Maryland's income tax (2% to 6.5% in 2026) and federal tax, and whether a Treasury bill, which Maryland can't tax, keeps more.
Maryland income tax brackets, 2026 (taxable income)
| Rate | Single filers | Married filing jointly |
|---|---|---|
| 2.00% | $0 to $1,000 | $0 to $1,000 |
| 3.00% | $1,000 to $2,000 | $1,000 to $2,000 |
| 4.00% | $2,000 to $3,000 | $2,000 to $3,000 |
| 4.75% | $3,000 to $100,000 | $3,000 to $150,000 |
| 5.00% | $100,000 to $125,000 | $150,000 to $175,000 |
| 5.25% | $125,000 to $150,000 | $175,000 to $225,000 |
| 5.50% | $150,000 to $250,000 | $225,000 to $300,000 |
| 5.75% | $250,000 to $500,000 | $300,000 to $600,000 |
| 6.25% | $500,000 to $1,000,000 | $600,000 to $1,200,000 |
| 6.50% | Over $1,000,000 | Over $1,200,000 |
What a 4.50% APY keeps in Maryland, by state bracket (22% federal bracket)
| Maryland rate | Savings or CD keeps | T-bill yield that matches it |
|---|---|---|
| 2.00% | 3.42% | 4.38% |
| 3.00% | 3.38% | 4.33% |
| 4.00% | 3.33% | 4.27% |
| 4.75% | 3.30% | 4.23% |
| 5.00% | 3.29% | 4.21% |
| 5.25% | 3.27% | 4.20% |
| 5.50% | 3.26% | 4.18% |
| 5.75% | 3.25% | 4.17% |
| 6.25% | 3.23% | 4.14% |
| 6.50% | 3.22% | 4.13% |
How this calculator works
Bank interest (savings, money market and CDs) is ordinary income to Maryland and to the IRS. After-tax yield = APY × (1 − federal rate − Maryland rate − local rate).
Treasury bills, notes and bonds are taxed only federally: federal law bars states from taxing their interest (31 U.S.C. 3124). After-tax yield = T-bill yield × (1 − federal rate).
The Maryland rates are its 2026 brackets as compiled by the Tax Foundation from state law. Choose the bracket your taxable income falls in; the calculator starts at the rate for a single filer with $75,000 of taxable income (4.75%).
What it assumes
- Your marginal rates apply to all of the interest.
- Some Maryland cities, counties or school districts tax income as well (on average 2.4% of income where they do). Enter yours as local income tax if it reaches interest.
- It ignores the state tax deduction on your federal return, which matters only if you itemise and are under the SALT cap.
Questions people ask
Does Maryland tax interest from savings accounts and CDs?
Yes. Maryland taxes bank interest as ordinary income at 2% to 6.5% in 2026, on top of federal income tax.
Are Treasury bills taxable in Maryland?
No. Interest on Treasury bills, notes, bonds and US savings bonds is exempt from Maryland income tax by federal law. It is still taxed federally.
Is a T-bill or a CD better in Maryland?
At Maryland's 4.75% rate and a 22% federal bracket, a 4.50% CD keeps 3.30%, the same as a T-bill yielding 4.23%. A T-bill paying more than that keeps more.
Do Treasury money market funds avoid Maryland tax?
Most states let you exclude the share of a fund's dividends that came from Treasury interest. Check Maryland's income tax instructions for the rule and the percentage your fund reports.
Do Maryland counties tax interest?
Yes. Every Maryland county and Baltimore City levies a local income tax on the same income as the state, interest included. Add your county's rate as local income tax.
Other states
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Terms explained
Related calculators
Sources
- Tax Foundation: State individual income tax rates and brackets, 2026
- 31 U.S.C. 3124: exemption of US obligations from state and local tax
- IRS: Topic 403, Interest received
Updated by the RateHerald team. The maths is tested against worked examples; report a problem.