Quick Maryland Tax Stats
| Tax Type | Rate / Info |
|---|---|
| Income Tax | Progressive 2% – 5.75% state income tax + local county tax (up to ~3.20%) |
| Sales Tax | 6% statewide |
| Jock Tax | Maryland taxes income earned from work performed in the state |
| Cost of Living (Range) | $85,000 – $175,000+ annual for single-person moderate-to-high lifestyle (Baltimore/DC suburbs) |
| Average Home Price | ~$450,000 – $550,000 (3-bed/2-bath in Baltimore / suburbs) |
Income Tax in Maryland
Maryland imposes a progressive income tax on earned income, including wages, bonuses, sponsorships and all/any other pass-through income.
What makes Maryland notable for high earners is the combination of:
- State tax (2%–5.75%)
- Local county tax (up to ~3.20%)
This means the effective top rate can approach ~8.95%+, among the highest in the U.S. for wage income.
For professional athletes, this can significantly reduce net take-home pay if they establish residency or spend a substantial part of their year earning in Maryland.
Example
A professional athlete earning $20 million annually while domiciled in a high county (e.g., Montgomery/Prince George’s) could owe ~$1.6–$1.8+ million just in state and local tax before federal obligation, a meaningful drag compared to tax-friendly states.
With combined local rates stacked on top of state tax, Maryland’s structure demands careful residency and earning-source planning for athletes seeking to maximize their net potential.
Sales Tax
Maryland’s 6% statewide sales tax applies to most goods and services, with no additional local surtaxes. While lower than some states, it still impacts discretionary and luxury spending:
- Vehicles
- Apparel
- Electronics
- Equipment
- Training gear
Athletes and high earners can reduce consumption tax drag by timing major purchases and optimizing purchases in lower-tax environments when possible.
Example
Purchasing a $120,000 luxury vehicle in Baltimore incurs $7,200 in sales tax, a meaningful outlay on consumption, especially when aggregated across lifestyle spending.
Jock Tax
Maryland taxes income earned from work performed in the state regardless of domicile. This includes:
- Games played in venues like Baltimore’s M&T Bank Stadium
- Practices and team activities held within the state
- Media appearances and appearances tied to compensation
Even athletes domiciled outside Maryland owe state tax on income apportioned to time and earnings earned within the state.
Example
An NFL player domiciled in Virginia but playing home games in Baltimore will owe Maryland tax on the income attributable to those games and any practices/events taxed under MD law.
Understanding Maryland’s jock tax rules is essential for multi-state athletes whose competitive calendars cross state lines.
Cost of Living and Housing
Maryland’s cost of living is elevated relative to many U.S. states, fueled by proximity to Washington D.C. and robust job markets.
- Baltimore / Washington Metro suburbs: Athlete lifestyle budgets often range $110k–$175k+ annually.
- Smaller towns: More modest budgets of $85k–$120k are possible outside high-cost corridors.
Housing
- Average 3-bed/2-bath homes in Baltimore metro range in the~$450,000 – $550,000 zone.
- Higher-end suburbs near D.C. (Bethesda, Chevy Chase) often exceed $800,000+ due to access to the commonwealth and capital city.
Housing costs, combined with state/local income tax, contribute to a higher living costs for athletes living in Maryland.
Property Tax
Maryland property tax rates are determined by a combination of state, county, and municipal rates, with an average effective rate of approximately 0.90%–0.95% on owner-occupied housing value.
While the state rate is generally low, high property values often result in higher annual tax payments compared to most states. Rates vary significantly by jurisdiction, with re-assessments occurring every 3 years.
For athletes, property taxes are a silent bank account and equity killer, when determining where to purchase property, as higher rates can mean higher interest rates, lesser appreciation rates and longer to pay off a home.
Residency Rules
Athletes domiciled in Maryland owe tax on worldwide earned income (state + local). Establishing residency requires:
- Maryland driver’s license/state ID
- Voter registration
- Physical domicile documentation
- Consistent presence
Residency decisions have large tax implications: being domiciled in Maryland means every dollar earned, home or away, is subject to state/local tax, increasing total lifetime tax exposure.
Example
An NBA player domiciled in Baltimore would owe full Maryland state/local tax on guaranteed contract earnings, even when playing away games. Proper residency planning, including domicile outside high-tax states/counties, can materially affect net earnings over a career.
Why Maryland is Athlete-Tax-Heavy
- Progressive state income tax + high tax creates higher marginal rates
- 6% sales tax impacts lifestyle consumption
- Jock tax applies to all in-state earnings regardless of residency
- Higher cost of living & housing raises baseline expenses
- Residency status dramatically influences net income trajectory
For athletes spending significant time in Maryland markets, whether home games, practices, or appearances, understanding the tax landscape is vital for net earnings planning.
Want Every APSM Report In One Place?
The APSM Master Report Bundle includes all current APSM reports:
- Why $100M Pro Contract Only Nets $35-$55M
- 7 Ways Athletes Go Broke Within 5-Years
- 7 Ways Athletes Build Generational Wealth
- (Will Include future additions of reports as APSM grows)
You’ll Get:
- Deep financial literacy designed through a sports lens
- Net worth projections, contract forecasts & tax modeling
- Wealth frameworks & risk analysis
- Lifetime value mapping for both athletes and professionals
The most valuable way to learn the game of money through APSM.
Next Athlete State Tax Reads
- Washington D.C. State Athlete Taxes
- Virginia State Athlete Taxes (The Commonwealth)
- West Virginia State Athlete Taxes
- Vermont State Athlete Taxes
- New Hampshire State Athlete Taxes
Next Reads
- Inside the Washington Commanders’ Stadium Fight
- Jackson Holliday’s Contract with the Baltimore Orioles: Taxes, Residency & Net Income Explained
- Trae Young Trade to Wizards Salary Implications, Cap Impact & Long-Term Financial Outlook
- Who Really Pays for NFL Stadiums? The Hidden Capital Stack Behind Billion-Dollar Deals
- Private Jets For Athletes: Flex, Asset, or Liability?
Credits
Sources: Maryland Comptroller’s Office, State & Local Tax Rates 2025, Zillow / Redfin Housing Data, APSM Proprietary Analysis
Disclaimer: This article contains general financial information for educational purposes and does not constitute professional advice.
Apostle Sports Media 