Maryland Mileage Deduction 2026: State + County Piggyback Tax

Maryland has state income tax up to 5.75% and every county adds a "piggyback" tax of 2.25% to 3.3%. Combined, Maryland residents can face effective rates approaching 9%. Your mileage deduction reduces both layers.

Combined Rates

Most populous counties (Montgomery, Prince George's, Baltimore County, Howard) charge the maximum 3.2% (increasing to 3.3% in 2026). Combined with a mid-bracket state rate of 5%:

The DC Commuter Angle

Many Maryland residents are self-employed consultants, contractors, or gig workers who serve clients in DC and Virginia. If you live in Montgomery or Prince George's County and drive to client sites in DC, those miles are deductible business trips (assuming your home office is your primary place of business).

How to File

Deduct on federal Schedule C, Line 9 at 72.5¢/mile. Maryland starts with your federal adjusted gross income, so the deduction flows through to your state return. The county piggyback tax is calculated automatically on the same return, no separate county filing needed. Keep a mileage log with the date, destination, purpose, and miles for each trip.

Employer Reimbursement

Maryland does not require private employers to reimburse mileage.

FAQ

Does my mileage deduction reduce the Maryland county piggyback tax?

Yes. The county tax is calculated on the same income base as the state tax. Your Schedule C mileage deduction reduces both layers automatically.

Does my mileage deduction reduce Maryland state taxes?

Yes. Maryland uses your federal AGI as the starting point. Your Schedule C mileage deduction reduces that number, which directly reduces your state tax (up to 5.75%) and county tax (up to 3.3%).

Can W-2 employees deduct mileage in Maryland?

No. The mileage deduction for W-2 employees was permanently eliminated under the One Big Beautiful Bill. Maryland does not require employer reimbursement, so if your employer does not reimburse, you have no tax remedy.

State tax plus county tax. Every mile saves twice. Start free →