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Premium Tax Credit (ACA) in Maryland 2026

Calculate your premium tax credit (aca) 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 +
$5,000
Est. Total Savings
No Limit
Max Deduction
Tax Credit
Deduction Type
26.8%
Combined Tax Rate

Premium Tax Credit (ACA) Savings Calculator for Maryland

$
$

Federal Savings

$5,000

22% bracket

Maryland State

$0

4.75% rate

Total Savings

$5,000

26.8% combined

Tax credits reduce your tax bill dollar-for-dollar, regardless of your tax bracket.

Savings by Tax Bracket in Maryland

10%
$5,000
12%
$5,000
22%
$5,000
24%
$5,000
32%
$5,000
35%
$5,000
37%
$5,000

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

Eligibility Requirements

Individuals who purchased health insurance through the ACA Marketplace

  • 1Household income 100-400% of federal poverty level
  • 2Not eligible for employer coverage or Medicare
  • 3Purchased through Healthcare.gov or state exchange

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 reconciling advance payments at tax time
  • !Forgetting to report life changes that affect eligibility
  • !Not filing Form 8962 and losing the credit
  • !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

Form 8962Form 1095-A

File these forms with your federal tax return to claim the premium tax credit (aca). 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

Flexible Spending Account (FSA)

Medical

~$1,094
est. savings

Medical Equipment & Devices

Medical

~$1,824
est. savings

Therapy & Counseling

Medical

~$2,432
est. savings

Premium Tax Credit (ACA) in Neighboring States

Pennsylvania

3.07% top rate (flat)

~$6,800
+1,800 vs Maryland

Delaware

6.6% top rate (progressive)

~$6,800
+1,800 vs Maryland

Virginia

5.75% top rate (progressive)

~$6,800
+1,800 vs Maryland

West Virginia

5.12% top rate (progressive)

~$6,800
+1,800 vs Maryland

District of Columbia

10.75% top rate (progressive)

~$6,800
+1,800 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 Premium Tax Credit (ACA) Guide

Frequently Asked Questions

How much can I save with the Premium Tax Credit (ACA) in Maryland?

In Maryland, the premium tax credit (aca) can save you an estimated $5,000 per year on a $5,000 deduction. This includes $5,000 in federal tax savings and $0 in Maryland state tax savings at the 4.75% marginal rate. The national average savings is $6,800/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 Premium Tax Credit (ACA) in Maryland?

Individuals who purchased health insurance through the ACA Marketplace. The eligibility requirements are the same whether you live in Maryland or another state, as this is a federal tax credit. 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 Premium Tax Credit (ACA) in Maryland?

To claim the premium tax credit (aca), you need to file Form 8962 and Form 1095-A 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 Premium Tax Credit (ACA) 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

Flexible Spending Account (FSA) in Maryland

Avg savings: $900/year