Taxes in Towson, Maryland
Complete tax guide for Towson, MD. State income tax up to 5.75%, 1.04% property tax, 6.33% sales tax. Calculate your total tax burden.
State Income Tax
5.75%
Maryland
Property Tax
1.04%
Effective rate
Sales Tax
6.33%
Combined rate
Tax Burden
High
Towson, MD Tax Overview
Population
57,542
Median Income
$87,100
Cost of Living
116.3 (100 = avg)
State Income Tax
5.75%
Local Income Tax
2.72%
Median Home Price
$386,000
Towson Tax Calculator
Pre-filled with Towson median: $87,100
Total Tax Burden in Towson
$24,817
Take-Home: $62,283 · Effective Rate: 28.49%
Federal Tax
$10,776
12.37% eff.
MD State + Local
$7,377
8.47% eff.
FICA
$6,663
7.65% eff.
Take-Home
$62,283
71.51% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $87,100.00 | $7,258.33 |
| Federal Income Tax | -$10,776.00 | -$898.00 |
| Maryland State Tax | -$5,008.25 | -$417.35 |
| Towson Local Tax (2.72%) | -$2,369.12 | -$197.43 |
| Social Security (6.2%) | -$5,400.20 | -$450.02 |
| Medicare (1.45%) | -$1,262.95 | -$105.25 |
| Take-Home Pay | $62,283.48 | $5,190.29 |
Property Tax in Towson
Median Home
$386,000
Annual Tax
$4,014
Monthly Tax
$335
Effective Rate
1.04%
Sales Tax in Towson
Combined Rate
6.33%
State Portion
~3.8%
Local Portion
~2.5%
The combined sales tax rate in Towson is 6.33%, which is below the national average of 7.12%. On a $100 purchase, you would pay $6.33 in sales tax.
Tax Burden Comparison
| Tax Type | Towson | Maryland Avg | National Avg |
|---|---|---|---|
| Income Tax | 5.75% + 2.72% | 5.75% | 4.6% |
| Property Tax | 1.04% | ~1.04% | 1.1% |
| Sales Tax | 6.33% | ~6.33% | 7.12% |
| Overall Burden | High | — | Moderate |
Tax Saving Tips for Towson 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.
- Towson has a local income tax of 2.72%. 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 Towson (1.04%) 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.
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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 Towson, MD?
Towson, Maryland has a state income tax rate up to 5.75%, plus a local income tax of 2.72%. The property tax rate is 1.04% and the combined sales tax rate is 6.33%.
How much is property tax in Towson?
The effective property tax rate in Towson is 1.04%. On the median home price of $386,000, this equals approximately $4,014 per year or $335 per month. This is below the national average of 1.1%.
What is the sales tax rate in Towson?
The combined sales tax rate in Towson is 6.33%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Towson's tax burden compare to other cities?
Towson 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, 1.04% property tax, and 6.33% sales tax determines the total burden. Cost of living index is 116.3 (100 = national average).
Are there any local taxes in Towson?
Yes. Towson imposes a local income tax of 2.72% in addition to the state income tax of 5.75%.