Kentucky vs Maryland:
Take-Home Pay Comparison
Side-by-side tax comparison between Kentucky (3.5% top rate, flat) and Maryland (6.5% top rate, graduated). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Tax Structure: Kentucky vs Maryland
Kentucky uses a flat income tax (3.5% flat) while Maryland has a graduated system (2-6.5% + local). On a $100K salary, Kentucky takes $3,382 in state and local taxes compared to Maryland’s $7,438 \u2014 a difference of $4,055.
Because Kentucky has flat brackets while Maryland is graduated, the gap between them changes at different income levels. Kentucky’s flat rate is predictable, while Maryland’s graduated brackets may benefit lower earners but penalize higher incomes.
Both states also impose local income taxes, adding further complexity. The local tax burden can vary significantly by city and county within each state.
Take-Home at Every Salary Level
Kentucky wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | Kentucky | Maryland | Difference | Winner |
|---|---|---|---|---|
| $40K | $33,038 | $31,532 | −$1,505 | Kentucky |
| $50K | $40,723 | $38,792 | −$1,930 | Kentucky |
| $60K | $48,408 | $46,052 | −$2,355 | Kentucky |
| $75K | $59,030 | $56,037 | −$2,993 | Kentucky |
| $100K | $75,743 | $71,687 | −$4,055 | Kentucky |
| $120K | $89,113 | $84,166 | −$4,947 | Kentucky |
| $150K | $108,619 | $102,267 | −$6,351 | Kentucky |
| $200K | $142,005 | $133,162 | −$8,843 | Kentucky |
| $250K | $174,632 | $163,289 | −$11,343 | Kentucky |
| $300K | $204,946 | $190,987 | −$13,959 | Kentucky |
Cost of Living: Kentucky (90) vs Maryland (112)
Take-home pay only tells part of the story. Kentucky has a cost of living index of 90 while Maryland is at 112 (national average = 100).
This is a substantial difference. After adjusting for cost of living, $100K in Kentucky has purchasing power of $84,158 compared to $64,006 in Maryland. Kentucky wins on both raw take-home and cost-adjusted purchasing power, making it the clear winner for a $100K earner.
Married Filing Jointly: How It Changes the Comparison
For a single earner at $100K filing jointly, take-home becomes $81,445 in Kentucky and $77,532 in Maryland \u2014 a difference of $3,913. The gap narrows under married filing, as the wider brackets reduce the tax bite in both states.
Should You Move from Maryland to Kentucky?
On paper, moving from Maryland to Kentucky would save $4,055/year on a $100K salary, or $20,277 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
The $4,055/year savings is meaningful but probably not enough to justify a move on its own. However, combined with other factors like career growth, lifestyle preferences, or family proximity, it could tip the scale.