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Military Combat Zone Pay Exclusion in Baltimore, MD 2026

Calculate your military combat zone pay exclusion tax savings in Baltimore, Maryland. With Maryland's 5.75% state tax rate, your combined savings are higher.

Maryland Tax Context

State Income Tax
5.75%
Local Income Tax
3.2%
Property Tax Rate
1.04%
Tax Burden
Moderate

Baltimore City piggyback income tax rate of 3.2% (highest in MD); all MD counties levy piggyback tax

$1,548
Est. Total Savings
No Limit
Max Deduction
Above-the-Line
Deduction Type
30.9%
Combined Tax Rate

Military Combat Zone Pay Exclusion Savings Calculator for Baltimore

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Federal Savings

$1,100

22% bracket

Maryland State

$288

5.75% rate

Local Tax

$160

3.2% rate

Total Savings

$1,548

30.9% combined

At a 30.9% combined tax rate in Baltimore, every $1,000 in deductions saves you $310 in taxes.

Savings by Tax Bracket in Baltimore

10%
$948
12%
$1,048
22%
$1,548
24%
$1,648
32%
$2,048
35%
$2,198
37%
$2,298

Includes 5.75% Maryland state tax + 3.2% local 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 5.75% additional savings)
  • !Not checking if Baltimore's local income tax allows this deduction (3.2% potential additional savings)

Required Tax Forms

Form W-2Form 1040

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 Baltimore, MD

Tax Preparation Fees Deduction

Other

~$563
est. savings

AMT Credit Carryforward

Other

~$3,000
est. savings

Hobby Loss Rules & Deductions

Other

~$0
est. savings

Federally Declared Disaster Loss

Other

~$11,255
est. savings

Professional Gambler Business Deduction

Other

~$7,034
est. savings

Innocent Spouse Relief

Other

~$7,034
est. savings

Estimated Tax Penalty Waiver

Other

~$703
est. savings

Mortgage Interest Deduction

Housing

~$4,924
est. savings

Military Combat Zone Pay Exclusion in Other Maryland Cities

Columbia, MD

5.75% state + 3.2% local

~$11,255
+9,707 vs Baltimore

Germantown, MD

5.75% state + 3.2% local

~$11,255
+9,707 vs Baltimore

Silver Spring, MD

5.75% state + 3.2% local

~$11,255
+9,707 vs Baltimore

Frederick, MD

5.75% state + 2.96% local

~$11,167
+9,619 vs Baltimore

Waldorf, MD

5.75% state + 0.6% local

~$10,309
+8,761 vs Baltimore

Ellicott City, MD

5.75% state + 1.68% local

~$10,702
+9,154 vs Baltimore

Glen Burnie, MD

5.75% state + 2.76% local

~$11,095
+9,547 vs Baltimore

Rockville, MD

5.75% state + 3.2% local

~$11,255
+9,707 vs Baltimore

Calculate Your Full Tax Savings in Baltimore

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

Income Tax CalculatorTaxes in BaltimoreFull Military Combat Zone Pay Exclusion Guide

Frequently Asked Questions

How much can I save with the Military Combat Zone Pay Exclusion in Baltimore, MD?

In Baltimore, Maryland, the military combat zone pay exclusion can save you an estimated $1,548 per year. This includes $1,100 in federal tax savings and $288 in Maryland state tax savings plus $160 in local tax savings. The national average savings is $8,000/year.

What is the Maryland state income tax rate for Baltimore residents?

Maryland has a 5.75% state income tax rate. Baltimore residents also pay a 3.2% local income tax, bringing the combined state/local rate to 8.9%. Baltimore City piggyback income tax rate of 3.2% (highest in MD); all MD counties levy piggyback tax

Who qualifies for the Military Combat Zone Pay Exclusion in Baltimore?

Military personnel serving in designated combat zones. The eligibility requirements are the same whether you live in Baltimore or elsewhere in the U.S., as this is a federal tax deduction. However, your savings amount will vary based on Maryland's 5.75% 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, which could provide an additional 5.75% savings. Filing status affects your deduction limits and tax bracket.

Is the Military Combat Zone Pay Exclusion better in Baltimore than in states without income tax?

Yes, Baltimore residents benefit more because Maryland's 5.75% state income tax 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 30.9% means more savings per dollar deducted.

Related Calculators

Tax Preparation Fees Deduction in Baltimore

Avg savings: $400/year

AMT Credit Carryforward in Baltimore

Avg savings: $3,000/year

Hobby Loss Rules & Deductions in Baltimore

Avg savings: $0/year

Federally Declared Disaster Loss in Baltimore

Avg savings: $8,000/year

Professional Gambler Business Deduction in Baltimore

Avg savings: $5,000/year

Innocent Spouse Relief in Baltimore

Avg savings: $5,000/year