Does Maryland tax pensions and retirement income?
Taxed, with a retirement exclusion
Partly. If you are 65 or older or totally disabled, Maryland lets you subtract taxable pension income up to $41,200. IRAs do not qualify for it.
In the state's own words
Copied word for word from the official document linked below each quote:
“If you are 65 or older or totally disabled (or your spouse is totally disabled), you may be able to subtract some of your taxable pension and retirement annuity income.”
“Maryland's maximum pension exclusion is $41,200.”
Details worth knowing
- Maryland says a traditional IRA, a Roth IRA, a SEP, a Keogh plan or an ineligible deferred compensation plan does not qualify for the exclusion.
And Social Security?
No. Maryland exempts the Social Security that is taxed on your federal return. The Maryland Social Security page quotes the rule.
Federal tax still applies
Whatever Maryland does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) matter. Check with the Comptroller of Maryland before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- Seniors and Retirees Frequently Asked QuestionsComptroller of Maryland. Read on November 12, 2026.