Maryland does not tax Social Security benefits
Maryland exempts all Social Security income from state income tax. This means the monthly payments you receive from Social Security — whether from retirement, disability, or survivor benefits — are not subject to Maryland's income tax. You will not owe state tax on these payments, and you do not need to report them on your Maryland tax return.
This exemption applies to everyone who receives Social Security in Maryland, regardless of your total income or filing status. Even if you have other income that pushes you into a higher tax bracket, your Social Security payments themselves remain untaxed at the state level.
Key Takeaways
- Maryland does not tax Social Security retirement, disability, or survivor benefits under state law.
- You do not report Social Security income on your Maryland state tax return, even if you file federally.
- The federal government may tax Social Security depending on your combined income, but Maryland adds no state tax on top of that.
- Other retirement income — pensions, 401(k) withdrawals, investment gains — may be taxed by Maryland depending on the source.
How federal taxation of Social Security works
While Maryland does not tax Social Security, the federal government may. Whether your Social Security is taxed federally depends on your "combined income," which is your adjusted gross income plus nontaxable interest plus half your Social Security benefits.
If your combined income exceeds $25,000 (single filer) or $32,000 (married filing jointly), up to 50 percent of your benefits may be subject to federal income tax. If it exceeds $34,000 (single) or $44,000 (married filing jointly), up to 85 percent may be taxed. These thresholds have not changed since 1984, so more retirees fall into them each year as incomes rise.
You will see this federal tax reflected on your Form 1040 when you file your federal return. Maryland's exemption does not change this — it only means you do not owe Maryland state tax on the same income.
Other retirement income Maryland does tax
Social Security is one of the few retirement income sources Maryland leaves untaxed. Pensions, 401(k) withdrawals, and individual retirement account (IRA) distributions are generally taxable by Maryland unless they fall into a specific exemption.
Military pensions and certain government employee pensions have their own exemptions under Maryland law. If you receive a pension from the federal government, a state government, or a local government, you may not owe Maryland tax on it — but the rules vary by employer and by when you started receiving payments. A tax professional or the Maryland Department of Revenue can tell you whether your specific pension qualifies.
Investment income, including interest, dividends, and capital gains, is taxed by Maryland. Rental income and self-employment income are also taxable. The Social Security exemption does not extend to any of these sources.
What to do on your Maryland tax return
If you receive only Social Security and no other income, you typically do not need to file a Maryland state return. Maryland's filing threshold is higher than the federal threshold, and Social Security does not count toward it.
If you have other income — a pension, part-time work, investment earnings — you may need to file a Maryland return even though your Social Security is exempt. When you file, you straightforward do not include Social Security on the income lines. The Maryland Form 502 (the main individual income tax return) has no line for Social Security income because it is not taxable.
Keep your Social Security statements and any correspondence from the Social Security Administration showing your annual benefit amount. You do not need to attach these to your return, but they serve as documentation if Maryland's tax department ever questions your filing.
States with different Social Security rules
Maryland is one of 39 states that do not tax Social Security benefits. Thirteen states tax Social Security under certain conditions: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. Each has different income thresholds and rules about which benefits are taxed.
If you moved to Maryland from one of these states, or plan to move away, your Social Security tax situation will change. The same applies if you receive benefits while living part of the year in another state — residency rules determine which state's tax law applies.
How to verify your Social Security income
The Social Security Administration sends a statement each year showing your annual benefit amount. You can also create a my Social Security account at ssa.gov to view your earnings record and benefit estimates at any time.
For tax purposes, you will receive a Form SSA-1099 each January showing the total benefits paid to you in the previous year. This form is for your records and for federal tax filing — you do not send it to Maryland. Keep it with your tax documents in case you need to reference it later.
Frequently Asked Questions
Do I have to report my Social Security on my Maryland return?
No. Maryland does not require you to report Social Security income on your state tax return because it is not taxable. If you have other income, you report that, but Social Security stays off the form entirely.
What if I moved to Maryland from a state that taxes Social Security?
Once you become a Maryland resident, Maryland's exemption applies to your Social Security going forward. Your previous state may tax benefits you received while you lived there, but Maryland will not. Check with your former state's tax department if you received a bill after moving.
Does the Maryland exemption explore to my spouse's Social Security too?
Yes. Maryland exempts all Social Security benefits received by anyone living in the state, whether you are the primary earner or receiving spousal or survivor benefits. The exemption applies to the entire household's Social Security income.
If I work part-time and get Social Security, do I owe Maryland tax?
You owe Maryland tax on the wages from your part-time job, but not on your Social Security. Report only the wages on your Maryland return. Your Social Security remains exempt even though your total income is higher.
Are there any income limits that affect the Social Security exemption?
No. Maryland exempts Social Security regardless of how much other income you have. The exemption does not phase out or disappear at higher income levels. Your Social Security is always tax-free at the state level in Maryland.