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Flexible Spending Account (FSA) in Maryland 2026

Calculate your flexible spending account (fsa) tax savings in Maryland. With Maryland's 5.75% top state tax rate, your combined savings are higher.

Maryland Tax Overview

State Income Tax
5.75%
progressive
Sales Tax
6%
avg combined: 6%
Property Tax Rate
1.05%
Median Income
$90,203

8 brackets. County taxes add 2.25-3.20%. Both estate AND inheritance tax. Low standard deduction.

Maryland Income Tax Brackets (Single)

2%
$0 - $1,000
3%
$1,000 - $2,000
4%
$2,000 - $3,000
4.75%
$3,000 - $100,000
Your bracket
5%
$100,000 - $125,000
5.25%
$125,000 - $150,000
5.5%
$150,000 - $250,000
5.75%
$250,000 +
$856
Est. Total Savings
$3,200
Max Deduction
Pre-Tax
Deduction Type
26.8%
Combined Tax Rate

Flexible Spending Account (FSA) Savings Calculator for Maryland

$
$

Federal Savings

$704

22% bracket

Maryland State

$152

4.75% rate

Total Savings

$856

26.8% combined

At a 26.8% combined tax rate in Maryland, every $1,000 in deductions saves you $268 in taxes.

Savings by Tax Bracket in Maryland

10%
$738
12%
$838
22%
$1,338
24%
$1,438
32%
$1,838
35%
$1,988
37%
$2,088

Includes 4.75% Maryland state tax on top of federal savings.

Eligibility Requirements

Employees with employer-offered FSA

  • 1$3,200 limit 2024
  • 2Use it or lose it (with carryover)
  • 3Employer plan required

Maryland residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 5.75%.

Common Mistakes to Avoid

  • !Over-contributing
  • !Not using funds by deadline
  • !Forgetting to claim the deduction on your Maryland state return (missing up to 5.75% additional savings)

Maryland Filing Tips

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+.

Required Tax Forms

W-2

File these forms with your federal tax return to claim the flexible spending account (fsa). Maryland may require additional state-specific forms.

Other Tax Deductions in Maryland

Medical & Dental Expenses

Medical

~$3,648
est. savings

Self-Employed Health Insurance

Medical

~$6,080
est. savings

HSA Contribution Deduction

Medical

~$2,189
est. savings

Long-Term Care Insurance

Medical

~$2,432
est. savings

Medical Travel Expenses

Medical

~$973
est. savings

Medical Equipment & Devices

Medical

~$1,824
est. savings

Therapy & Counseling

Medical

~$2,432
est. savings

Dental & Vision Expenses

Medical

~$1,459
est. savings

Flexible Spending Account (FSA) in Neighboring States

Pennsylvania

3.07% top rate (flat)

~$1,026
+170 vs Maryland

Delaware

6.6% top rate (progressive)

~$1,170
+314 vs Maryland

Virginia

5.75% top rate (progressive)

~$1,135
+279 vs Maryland

West Virginia

5.12% top rate (progressive)

~$1,109
+253 vs Maryland

District of Columbia

10.75% top rate (progressive)

~$1,340
+484 vs Maryland

Tax Calculators for Maryland Cities

BaltimoreColumbiaGermantownSilver SpringFrederickWaldorfEllicott CityGlen BurnieRockvilleBethesda

Calculate Your Full Tax Savings in Maryland

Use our free tax calculators to optimize your entire tax return for Maryland.

Income Tax CalculatorMaryland Income TaxFull Flexible Spending Account (FSA) Guide

Frequently Asked Questions

How much can I save with the Flexible Spending Account (FSA) in Maryland?

In Maryland, the flexible spending account (fsa) can save you an estimated $856 per year on a $5,000 deduction. This includes $704 in federal tax savings and $152 in Maryland state tax savings at the 4.75% marginal rate. The national average savings is $900/year.

What is the Maryland state income tax rate?

Maryland has a progressive income tax system with a top rate of 5.75%. 8 brackets. County taxes add 2.25-3.20%. Both estate AND inheritance tax. Low standard deduction.

Who qualifies for the Flexible Spending Account (FSA) in Maryland?

Employees with employer-offered FSA. The eligibility requirements are the same whether you live in Maryland or another state, as this is a federal tax deduction. However, your total savings will vary based on Maryland's 5.75% top state tax rate.

What tax forms do I need to claim the Flexible Spending Account (FSA) in Maryland?

To claim the flexible spending account (fsa), you need to file W-2 with your federal return. Maryland residents should also check if the state allows this deduction on their state return for additional savings of up to 5.75%. Filing status affects your deduction limits and tax bracket.

Is the Flexible Spending Account (FSA) better in Maryland than in states without income tax?

Yes, Maryland residents benefit more because the state's 5.75% top income tax rate means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 26.8% means more savings per dollar deducted.

What is the standard deduction in Maryland for 2026?

Maryland's standard deduction is $2,550 for single filers and $5,150 for married filing jointly. 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+.

Related Calculators

Medical & Dental Expenses in Maryland

Avg savings: $3,000/year

Self-Employed Health Insurance in Maryland

Avg savings: $5,000/year

HSA Contribution Deduction in Maryland

Avg savings: $1,800/year

Long-Term Care Insurance in Maryland

Avg savings: $2,000/year

Medical Travel Expenses in Maryland

Avg savings: $800/year

Medical Equipment & Devices in Maryland

Avg savings: $1,500/year