Side-by-side tax comparison between Maryland (5.75% top rate, graduated) and North Carolina (3.99% top rate, flat). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Maryland uses a graduated income tax (2-5.75% + local) while North Carolina has a flat system (3.99% flat). On a $100K salary, Maryland takes $3,738 in state and local taxes compared to North Carolina’s $3,990 \u2014 a difference of $253.
Because Maryland has graduated brackets while North Carolina is flat, the gap between them changes at different income levels. Maryland’s rates increase with income, so high earners feel the difference more acutely.
Maryland also has local income taxes (estimated at $0/year on $100K), which North Carolina does not. This widens the gap beyond just state rates.
Maryland wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | Maryland | North Carolina | Difference | Winner |
|---|---|---|---|---|
| $40K | $32,825 | $32,724 | −$101 | Maryland |
| $50K | $40,486 | $40,360 | −$126 | Maryland |
| $60K | $48,148 | $47,996 | −$152 | Maryland |
| $75K | $58,734 | $58,545 | −$189 | Maryland |
| $100K | $75,388 | $75,135 | −$253 | Maryland |
| $120K | $88,710 | $88,407 | −$303 | Maryland |
| $150K | $108,145 | $107,766 | −$379 | Maryland |
| $200K | $141,412 | $140,907 | −$505 | Maryland |
| $250K | $173,920 | $173,289 | −$631 | Maryland |
| $300K | $204,116 | $203,359 | −$758 | Maryland |
Take-home pay only tells part of the story. Maryland has a cost of living index of 112 while North Carolina is at 95 (national average = 100).
This is a substantial difference. After adjusting for cost of living, $100K in Maryland has purchasing power of $67,310 compared to $79,089 in North Carolina. Interestingly, North Carolina wins on purchasing power even though Maryland has higher raw take-home pay. The cost of living difference more than offsets the tax advantage.
For a single earner at $100K filing jointly, take-home becomes $80,973 in Maryland and $80,720 in North Carolina \u2014 a difference of $253. The gap remains similar regardless of filing status.
On paper, moving from North Carolina to Maryland would save $253/year on a $100K salary, or $1,263 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $253/year, the tax difference alone likely isn’t worth relocating for. Other factors — job market, lifestyle, family — should drive the decision. The tax savings are a nice bonus if you’re already considering the move for other reasons.