Military Combat Zone Pay Exclusion in Maryland 2026
Calculate your military combat zone pay exclusion tax savings in Maryland. With Maryland's 5.75% top state tax rate, your combined savings are higher.
Maryland Tax Overview
8 brackets. County taxes add 2.25-3.20%. Both estate AND inheritance tax. Low standard deduction.
Maryland Income Tax Brackets (Single)
Military Combat Zone Pay Exclusion Savings Calculator for Maryland
Federal Savings
$1,100
22% bracket
Maryland State
$238
4.75% rate
Total Savings
$1,338
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
Includes 4.75% Maryland state tax on top of federal savings.
Eligibility Requirements
Military personnel serving in designated combat zones
- 1Must serve in a combat zone designated by Executive Order
- 2Enlisted members: all compensation is tax-free
- 3Officers: exclusion capped at highest enlisted pay plus hostile fire pay
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
- !Not extending filing deadlines for combat zone service
- !Forgetting that combat zone extends to qualifying hazardous duty areas
- !Missing the option to include combat pay for EITC calculation
- !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
File these forms with your federal tax return to claim the military combat zone pay exclusion. Maryland may require additional state-specific forms.
Other Tax Deductions in Maryland
Tax Preparation Fees Deduction
Other
AMT Credit Carryforward
Other
Hobby Loss Rules & Deductions
Other
Federally Declared Disaster Loss
Other
Professional Gambler Business Deduction
Other
Innocent Spouse Relief
Other
Estimated Tax Penalty Waiver
Other
Mortgage Interest Deduction
Housing
Military Combat Zone Pay Exclusion in Neighboring States
Pennsylvania
3.07% top rate (flat)
Delaware
6.6% top rate (progressive)
Virginia
5.75% top rate (progressive)
West Virginia
5.12% top rate (progressive)
District of Columbia
10.75% top rate (progressive)
Tax Calculators for Maryland Cities
Calculate Your Full Tax Savings in Maryland
Use our free tax calculators to optimize your entire tax return for Maryland.
Frequently Asked Questions
How much can I save with the Military Combat Zone Pay Exclusion in Maryland?
In Maryland, the military combat zone pay exclusion can save you an estimated $1,338 per year on a $5,000 deduction. This includes $1,100 in federal tax savings and $238 in Maryland state tax savings at the 4.75% marginal rate. The national average savings is $8,000/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 Military Combat Zone Pay Exclusion in Maryland?
Military personnel serving in designated combat zones. 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 Military Combat Zone Pay Exclusion in Maryland?
To claim the military combat zone pay exclusion, you need to file Form W-2 and Form 1040 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 Military Combat Zone Pay Exclusion 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
Tax Preparation Fees Deduction in Maryland
Avg savings: $400/year
AMT Credit Carryforward in Maryland
Avg savings: $3,000/year
Hobby Loss Rules & Deductions in Maryland
Avg savings: $0/year
Federally Declared Disaster Loss in Maryland
Avg savings: $8,000/year
Professional Gambler Business Deduction in Maryland
Avg savings: $5,000/year
Innocent Spouse Relief in Maryland
Avg savings: $5,000/year