Does Maryland have a special capital gains rate?

No. Unlike the federal system, Maryland taxes capital gains as ordinary income at its graduated state rates from 2% to 5.75%. On top of that, your county charges a local income tax of roughly 2.25% to 3.20% on the same gain.

How are long-term gains taxed federally?

Federal long-term gains on assets held more than a year use preferential brackets of 0%, 15%, and 20% for 2025. The gain stacks on top of your other taxable income, so a large gain can push part of itself into the 15% or 20% band.

What about short-term gains?

Federally, short-term gains on assets held a year or less are taxed at your ordinary income marginal rate, not the preferential brackets. Enter your federal marginal rate when you select short-term, and Maryland taxes them the same as any other income.

What is the 3.8% NIIT?

The Net Investment Income Tax adds 3.8% on investment income once your modified adjusted gross income exceeds $200,000 single or $250,000 married filing jointly. Toggle it on if you are above those thresholds; the tool applies it only to the portion of the gain over the threshold.

Which county rate should I use?

Maryland counties set their own local income tax rates between 2.25% and 3.20% for 2025. Montgomery, Howard, and several others sit near the 3.20% top; Worcester is at the 2.25% floor. Use the rate for the county where you live.

Maryland Capital Gains Tax Calculator

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Maryland is one of the states that gives capital gains no special treatment. Where the federal system rewards long holding periods with preferential 0/15/20% brackets, Maryland folds your gain into ordinary income and taxes it at state graduated rates plus your county’s local income tax. This calculator combines all three layers so you can see the real bite on a sale.

How it works

The gain is layered on top of your other income and each layer is taxed in its own brackets:

federal (long-term) = gain taxed in the 0/15/20% brackets, stacked on income
federal (short-term)= gain × your federal marginal rate
NIIT (optional)     = 3.8% × portion of gain above the MAGI threshold
Maryland state      = gain taxed in MD's 2%–5.75% brackets, stacked on income
Maryland local      = gain × county rate (2.25%–3.20%)
total               = federal + NIIT + state + local

Because both federal long-term rates and the Maryland state schedule are progressive, the gain is stacked above your existing income — a $50,000 gain on top of a $90,000 salary is taxed at the marginal rates that band reaches, not from zero.

Example and notes

A single filer with $90,000 of income realizing a $50,000 long-term gain pays 15% federally on the gain, roughly 5.5% Maryland state, and around 3.2% county — an effective rate near 24% before any NIIT. Short-term gains are worse because they lose the preferential federal rate entirely. Use your own county’s local rate and confirm current figures with the Maryland Comptroller and the IRS; this is a planning estimate, not tax advice.