What this calculator does
More than half of the people who work in DC live in Maryland or Virginia, and where they live decides their income tax. DC residents pay DC income tax on graduated brackets from 4% to 10.75%. Because the Home Rule Act bars DC from taxing nonresidents' income, workers who live in Maryland or Virginia pay income tax to their home state instead, and a large share of DC's workforce commutes in from those states. This calculator compares take-home pay on the same DC salary in all three places.
How to use it
- Enter your salary and pre-tax deductions.
- Choose your filing status.
- Pick a Maryland county for the local income tax.
The formula
Take-home = salary − pre-tax deductions − federal income tax − FICA − home-state tax. DC: brackets from 4% to 10.75% after the standard deduction. Maryland: brackets from 2% to 6.5% after a $3,350 standard deduction and exemptions, plus county tax (3.2% in Montgomery and Prince George's). Virginia: 2% to 5.75% after an $8,750 standard deduction and $930 exemption.
Worked example
Using the default inputs shown in the calculator above:
| Where you live | State/local income tax | Take-home pay |
|---|---|---|
| Live in DC | $5,872 | $75,664 |
| Live in Maryland (Montgomery County) | $7,822 | $73,713 |
| Live in Virginia | $5,166 | $76,369 |
Highest take-home: Live in Virginia: $76,369. Difference between highest and lowest: $2,656 a year.
Your federal tax and FICA are the same wherever you live; the difference is the state (and Maryland county) tax. DC cannot tax commuters, so a Maryland or Virginia resident pays only their home state even though the job is in the District. Maryland's county tax is why it often costs more at this income, while Virginia's top 5.75% rate starts at just $17,000.
Beyond income tax
Income tax is only one piece. Housing costs, property tax, car ownership and commute time often differ more. Maryland and Virginia charge personal property tax on cars in many counties (Virginia especially), while DC's universal pre-K can save families thousands.
Common mistakes and tips
- Assuming DC taxes you because you work there.
- Forgetting Maryland's county income tax.
- Ignoring Virginia's car tax when comparing.
- Comparing gross salaries for jobs in different states without adjusting for tax.
Frequently asked questions
Does DC tax people who live in Maryland or Virginia?
No. The Home Rule Act bars DC from taxing nonresidents' income.
Where is take-home pay highest?
It depends on income; enter yours. At many incomes, Virginia comes out ahead of Maryland because Maryland adds a county tax.
What is Maryland's local income tax?
A county tax on taxable income; Montgomery and Prince George's use 3.2% in this estimate.
Why does DC have a high top rate?
DC funds both state- and city-level services from one budget and cannot tax commuters, so it relies more on residents.
Sources
Disclaimer
This calculator provides estimates for educational purposes only and is not financial, tax, legal, real estate, or insurance advice. Consult a licensed professional before making decisions.