As of January 2019 Maryland allows seniors receiving pension income to exclude $30,600 from taxable income. The table below compares the state tax burden for the District of Columbia and Maryland for seniors earning the same income. The amount of the exclusion is adjusted annually.

 

*A single person age 65 or older with $59,200 civil/service/military pension income living in Maryland would pay $1,710 in MD state tax whereas, that same person living in the District of Columbia would pay $2,566 in DC state tax. The person living in Maryland is able to exclude $30,600 of their pension income.  

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**A married couple 65 or older with $ 96,400 civil service/military pension income living in Maryland would pay $1,626 in MD state tax whereas, that same couple living in the District of Columbia would pay $3,792 in DC state tax. The married couple living in Maryland is able to exclude $61,200 of their pension income.

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***Tax liability is the total amount of tax debt owned by an individual to the state based on the taxable income.