Taxes in Bethesda, Maryland
Complete tax guide for Bethesda, MD. State income tax up to 5.75%, 1.06% property tax, 8.16% sales tax. Calculate your total tax burden.
State Income Tax
5.75%
Maryland
Property Tax
1.06%
Effective rate
Sales Tax
8.16%
Combined rate
Tax Burden
High
Bethesda, MD Tax Overview
Population
68,056
Median Income
$83,500
Cost of Living
116.7 (100 = avg)
State Income Tax
5.75%
Local Income Tax
2.41%
Median Home Price
$412,000
Bethesda Tax Calculator
Pre-filled with Bethesda median: $83,500
Total Tax Burden in Bethesda
$23,185
Take-Home: $60,315 · Effective Rate: 27.77%
Federal Tax
$9,984
11.96% eff.
MD State + Local
$6,814
8.16% eff.
FICA
$6,388
7.65% eff.
Take-Home
$60,315
72.23% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $83,500.00 | $6,958.33 |
| Federal Income Tax | -$9,984.00 | -$832.00 |
| Maryland State Tax | -$4,801.25 | -$400.10 |
| Bethesda Local Tax (2.41%) | -$2,012.35 | -$167.70 |
| Social Security (6.2%) | -$5,177.00 | -$431.42 |
| Medicare (1.45%) | -$1,210.75 | -$100.90 |
| Take-Home Pay | $60,314.65 | $5,026.22 |
Property Tax in Bethesda
Median Home
$412,000
Annual Tax
$4,367
Monthly Tax
$364
Effective Rate
1.06%
Sales Tax in Bethesda
Combined Rate
8.16%
State Portion
~5.7%
Local Portion
~2.5%
The combined sales tax rate in Bethesda is 8.16%, which is above the national average of 7.12%. On a $100 purchase, you would pay $8.16 in sales tax.
Tax Burden Comparison
| Tax Type | Bethesda | Maryland Avg | National Avg |
|---|---|---|---|
| Income Tax | 5.75% + 2.41% | 5.75% | 4.6% |
| Property Tax | 1.06% | ~1.06% | 1.1% |
| Sales Tax | 8.16% | ~8.16% | 7.12% |
| Overall Burden | High | — | Moderate |
Tax Saving Tips for Bethesda Residents
- Maryland's income tax rate of 5.75% is above average. Maximize pre-tax retirement contributions (401k up to $23,500, IRA up to $7,000) to reduce both federal and state taxable income.
- Bethesda has a local income tax of 2.41%. If you work remotely, verify whether you owe city tax based on where you work or where you live. Some cities only tax people who work within city limits.
- Property tax in Bethesda (1.06%) is below the national average of 1.1%. This makes homeownership more affordable here relative to property tax burden.
- The combined sales tax rate of 8.16% is relatively high. Consider making large purchases in lower-tax jurisdictions or online retailers that do not charge local tax rates.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
Other Cities in Maryland
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HighCalculate Your Full Maryland Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Bethesda, MD?
Bethesda, Maryland has a state income tax rate up to 5.75%, plus a local income tax of 2.41%. The property tax rate is 1.06% and the combined sales tax rate is 8.16%.
How much is property tax in Bethesda?
The effective property tax rate in Bethesda is 1.06%. On the median home price of $412,000, this equals approximately $4,367 per year or $364 per month. This is below the national average of 1.1%.
What is the sales tax rate in Bethesda?
The combined sales tax rate in Bethesda is 8.16%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Bethesda's tax burden compare to other cities?
Bethesda has a high overall tax burden. The effective total tax rate for a median-income household is approximately 31.1%. The combination of 5.75% state income tax, 1.06% property tax, and 8.16% sales tax determines the total burden. Cost of living index is 116.7 (100 = national average).
Are there any local taxes in Bethesda?
Yes. Bethesda imposes a local income tax of 2.41% in addition to the state income tax of 5.75%.