Side-by-side tax comparison between Maryland (5.75% top rate, graduated) and Tennessee (no income tax). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Tennessee has no state income tax, while Maryland uses a graduated system with rates of 2-5.75% + local. On a $100K salary, this creates a state tax difference of $3,738/year that Tennessee residents simply don’t pay.
Maryland’s graduated brackets mean the gap between these two states widens at higher salaries. At $200K, the state tax difference grows to $7,475/year, while at $50K it’s only $1,869.
Tennessee wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | Maryland | Tennessee | Difference | Winner |
|---|---|---|---|---|
| $40K | $32,825 | $34,320 | +$1,495 | Tennessee |
| $50K | $40,486 | $42,355 | +$1,869 | Tennessee |
| $60K | $48,148 | $50,390 | +$2,243 | Tennessee |
| $75K | $58,734 | $61,538 | +$2,803 | Tennessee |
| $100K | $75,388 | $79,125 | +$3,738 | Tennessee |
| $120K | $88,710 | $93,195 | +$4,485 | Tennessee |
| $150K | $108,145 | $113,751 | +$5,606 | Tennessee |
| $200K | $141,412 | $148,887 | +$7,475 | Tennessee |
| $250K | $173,920 | $183,264 | +$9,344 | Tennessee |
| $300K | $204,116 | $215,329 | +$11,213 | Tennessee |
Take-home pay only tells part of the story. Maryland has a cost of living index of 112 while Tennessee is at 90 (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 $87,917 in Tennessee. Tennessee wins on both raw take-home and cost-adjusted purchasing power, making it the clear winner for a $100K earner.
For a single earner at $100K filing jointly, take-home becomes $80,973 in Maryland and $84,710 in Tennessee \u2014 a difference of $3,738. The gap remains similar regardless of filing status.
On paper, moving from Maryland to Tennessee would save $3,738/year on a $100K salary, or $18,688 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
The $3,738/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.