Maryland vs Texas:
Take-Home Pay Comparison
Side-by-side tax comparison between Maryland (5.75% top rate, graduated) and Texas (no income tax). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Tax Structure: Maryland vs Texas
Texas 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 Texas 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.
Take-Home at Every Salary Level
Texas wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | Maryland | Texas | Difference | Winner |
|---|---|---|---|---|
| $40K | $32,825 | $34,320 | +$1,495 | Texas |
| $50K | $40,486 | $42,355 | +$1,869 | Texas |
| $60K | $48,148 | $50,390 | +$2,243 | Texas |
| $75K | $58,734 | $61,538 | +$2,803 | Texas |
| $100K | $75,388 | $79,125 | +$3,738 | Texas |
| $120K | $88,710 | $93,195 | +$4,485 | Texas |
| $150K | $108,145 | $113,751 | +$5,606 | Texas |
| $200K | $141,412 | $148,887 | +$7,475 | Texas |
| $250K | $173,920 | $183,264 | +$9,344 | Texas |
| $300K | $204,116 | $215,329 | +$11,213 | Texas |
Cost of Living: Maryland (112) vs Texas (93)
Take-home pay only tells part of the story. Maryland has a cost of living index of 112 while Texas is at 93 (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 $85,081 in Texas. Texas 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 $80,973 in Maryland and $84,710 in Texas \u2014 a difference of $3,738. The gap remains similar regardless of filing status.
Should You Move from Maryland to Texas?
On paper, moving from Maryland to Texas 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.