Taxes in Gaithersburg, Maryland
Complete tax guide for Gaithersburg, MD. State income tax up to 5.75%, 1.07% property tax, 7.26% sales tax. Calculate your total tax burden.
State Income Tax
5.75%
Maryland
Property Tax
1.07%
Effective rate
Sales Tax
7.26%
Combined rate
Tax Burden
High
Gaithersburg, MD Tax Overview
Population
67,417
Median Income
$82,000
Cost of Living
118.5 (100 = avg)
State Income Tax
5.75%
Local Income Tax
1.27%
Median Home Price
$445,000
Gaithersburg Tax Calculator
Pre-filled with Gaithersburg median: $82,000
Total Tax Burden in Gaithersburg
$21,683
Take-Home: $60,317 · Effective Rate: 26.44%
Federal Tax
$9,654
11.77% eff.
MD State + Local
$5,756
7.02% eff.
FICA
$6,273
7.65% eff.
Take-Home
$60,317
73.56% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $82,000.00 | $6,833.33 |
| Federal Income Tax | -$9,654.00 | -$804.50 |
| Maryland State Tax | -$4,715.00 | -$392.92 |
| Gaithersburg Local Tax (1.27%) | -$1,041.40 | -$86.78 |
| Social Security (6.2%) | -$5,084.00 | -$423.67 |
| Medicare (1.45%) | -$1,189.00 | -$99.08 |
| Take-Home Pay | $60,316.60 | $5,026.38 |
Property Tax in Gaithersburg
Median Home
$445,000
Annual Tax
$4,762
Monthly Tax
$397
Effective Rate
1.07%
Sales Tax in Gaithersburg
Combined Rate
7.26%
State Portion
~4.8%
Local Portion
~2.5%
The combined sales tax rate in Gaithersburg is 7.26%, which is above the national average of 7.12%. On a $100 purchase, you would pay $7.26 in sales tax.
Tax Burden Comparison
| Tax Type | Gaithersburg | Maryland Avg | National Avg |
|---|---|---|---|
| Income Tax | 5.75% + 1.27% | 5.75% | 4.6% |
| Property Tax | 1.07% | ~1.07% | 1.1% |
| Sales Tax | 7.26% | ~7.26% | 7.12% |
| Overall Burden | High | — | Moderate |
Tax Saving Tips for Gaithersburg 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.
- Gaithersburg has a local income tax of 1.27%. 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 Gaithersburg (1.07%) is below the national average of 1.1%. This makes homeownership more affordable here relative to property tax burden.
- 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 Gaithersburg, MD?
Gaithersburg, Maryland has a state income tax rate up to 5.75%, plus a local income tax of 1.27%. The property tax rate is 1.07% and the combined sales tax rate is 7.26%.
How much is property tax in Gaithersburg?
The effective property tax rate in Gaithersburg is 1.07%. On the median home price of $445,000, this equals approximately $4,762 per year or $397 per month. This is below the national average of 1.1%.
What is the sales tax rate in Gaithersburg?
The combined sales tax rate in Gaithersburg is 7.26%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Gaithersburg's tax burden compare to other cities?
Gaithersburg has a high overall tax burden. The effective total tax rate for a median-income household is approximately 30.2%. The combination of 5.75% state income tax, 1.07% property tax, and 7.26% sales tax determines the total burden. Cost of living index is 118.5 (100 = national average).
Are there any local taxes in Gaithersburg?
Yes. Gaithersburg imposes a local income tax of 1.27% in addition to the state income tax of 5.75%.