Maryland · Adoption Tax Credit
Adoption Tax Credit in Maryland (2026)
Credit up to $17,670 per child for qualified adoption expenses in 2026 (up to $5,120 refundable). Maryland has a progressive income tax with a top rate of 6.5%, so a Maryland filer's combined marginal rate on the next dollar at $90,203 of income is about 26.75% (22% federal + 4.75% MD).
2026 savings example for Maryland
Planning estimate for a single filer earning $90,203 (Maryland median household income in LevyIO's state dataset) who claims a $5,000 credit. Federal tax uses the 2026 IRS brackets after the $16,100 standard deduction; MD tax uses the state brackets in LevyIO's dataset and assumes the state follows the federal treatment.
Estimated total savings
$5,000
Federal savings
$5,000
$11,015 → $6,015 · 22% bracket
MD state savings
$0
Federal credit only; check for a state credit
Combined marginal rate
26.75%
Credits do not depend on the bracket
Statutory maximum for this item in LevyIO's dataset: $17,670.
Federal × Maryland marginal rates (2026, single)
Gross-income ranges include the federal standard deduction. The MD column is the state marginal rate at the midpoint of each range. A credit saves its face value regardless of bracket.
| Federal bracket | Gross income (single) | MD marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 4.75% | 14.75% | $1,000 |
| 12% | $28,500 - $66,500 | 4.75% | 16.75% | $1,000 |
| 22% | $66,500 - $121,800 | 4.75% | 26.75% | $1,000 |
| 24% | $121,800 - $217,875 | 5.5% | 29.5% | $1,000 |
| 32% | $217,875 - $272,325 | 5.5% | 37.5% | $1,000 |
| 35% | $272,325 - $656,700 | 5.75% | 40.75% | $1,000 |
| 37% | Over $656,700 | 6.25% | 43.25% | $1,000 |
Eligibility & forms
Families adopting children
- Up to $17,670 per child (2026)
- Qualified adoption expenses
- Income phase-out from $265,080 to $305,080 MAGI (2026)
Federal forms: Form 8839
Maryland filing notes
Total tax includes state and county. County tax adds significantly. Both estate and inheritance taxes apply. Low standard deduction makes itemizing worthwhile. Retirement income subtraction available for 65+.
Common mistakes: Missing carryforward opportunity; Not claiming employer benefits.
Frequently asked questions
How much can the Adoption Tax Credit save a Maryland taxpayer in 2026?
Credits reduce tax dollar-for-dollar. In LevyIO's example, a single filer with $90,203 of income (the Maryland median household income in our state dataset) and a $5,000 credit would cut 2026 federal tax from $11,015 to $6,015, a $5,000 saving. Whether Maryland offers a matching state credit depends on the MD return, so the estimate counts federal savings only.
What is the Maryland income tax rate for 2026?
Maryland has a progressive income tax with a top rate of 6.5%. The MD standard deduction in LevyIO's dataset is $3,350 single / $6,700 married. 10 brackets from 2% to 6.5% (6.25% over $500k, 6.5% over $1M single). County taxes add 2.25-3.20%. Both estate AND inheritance tax. Low standard deduction.
Who qualifies for the Adoption Tax Credit in Maryland?
Families adopting children. The federal rules are the same in every state; the requirements are: Up to $17,670 per child (2026); Qualified adoption expenses; Income phase-out from $265,080 to $305,080 MAGI (2026). Maryland filers should confirm on the MD return whether the state follows the federal treatment.
Which forms do I file to claim the Adoption Tax Credit?
Federal: Form 8839. Maryland: check the Maryland Comptroller instructions for the matching state schedule. Common mistakes: Missing carryforward opportunity; Not claiming employer benefits.
Adoption Tax Credit in other states
Sources
Reviewed 2026-09-17. Estimates are educational planning figures computed from the IRS 2026 inflation adjustments and LevyIO's state bracket dataset; they are not tax advice.