Updated September 4, 2026. Quick answer: Partially, and only if you are 65 or older (or totally disabled): Maryland’s Pension Exclusion shelters up to $41,200 of qualifying pension and 401(k)/403(b) income for 2025, reduced by Social Security received. Traditional and Roth IRAs do not qualify at all. Military retirement pay is separately, partially exempt up to $20,000 (age 55+) or $12,500 (under 55).
Federal civil service pensions in Maryland: does Maryland tax federal pensions.
State retirement-income forms, line by line: Maryland Form 502R.
Inherited an IRA? What the state’s own documents say about taxing those withdrawals: Maryland tax on inherited IRA withdrawals.
Hold a 403(b) or 457(b)? What the state’s own documents say about taxing those withdrawals: does Maryland tax 403(b) and 457(b) withdrawals.
Drawing a pension? Whether the state withholds tax from it, from its own documents: Maryland tax withholding on pension payments.
The Maryland Law Enforcement Officers’ Pension System options, DROP and refund rules, from the State Retirement Agency’s own documents: Maryland LEOPS retirement decisions.
Married, or planning for a spouse’s death? Whether the state is a community property state, from its own statutes: Is Maryland a community property state?.
Selling your home? How the state taxes the profit, from its own tax documents: Does Maryland tax the profit from selling your home?.
The Baltimore Fire and Police Employees’ Retirement System options, DROP and refund rules, from the system’s own documents: Baltimore fire and police retirement decisions.
The state’s income tax schedule: the Maryland tax brackets for 2026.
The Montgomery County Employees’ Retirement System options, refund and survivor rules, from the county’s own documents: Montgomery County Maryland retirement decisions.
Withdrawing from an IRA or 401(k)? Whether the state withholds tax from it, from its own documents: Maryland tax withholding on IRA and 401(k) withdrawals.
A pension earned in another state, or paid after a move, is covered here: does Maryland tax out-of-state pensions.
The Baltimore ERS payment options and refund rules, from the system’s own documents: Baltimore ERS retirement decisions.
Trusts have their own page: does Maryland tax trust income.
Dividends and interest have their own page: does Maryland tax dividends and interest.
Annuity payments have their own page: does Maryland tax annuity income.
Saving for a child’s college? The state’s 529 break has its own page: Maryland 529 plan tax deduction.
Military retired pay has its own page: does Maryland tax military retirement.
Selling stocks, funds or real estate has its own page: does Maryland tax capital gains.
Withdrawals from a 401(k) or IRA have their own page: does Maryland tax 401(k) and IRA withdrawals.
Related guides on this topic: Pension After a Layoff.
Related state retirement tax guides: Leaving Maryland in Retirement and District of Columbia to Maryland Retirement Taxes.
Confidence note: high. This page is scoped to pension, IRA and 401(k) taxation specifically. For the state’s full retirement-tax picture (Social Security, tax rates, estate and probate), see how Maryland taxes retirement income generally.
The rule in the source’s own words. Maryland Code, Tax-General, section 10-209(b): “equal to the lesser of: (1) the cumulative or total annuity, pension, or endowment income from an employee retirement system” (source, read October 5, 2026). This page’s governing citation: Md. Code Ann., Tax-General sec. 10-209(b).
How pensions and retirement-account withdrawals are taxed
| Public (state/local government) pensions | Partially exempt via the Pension Exclusion, up to $41,200 for 2025, available only if age 65+ or totally disabled, reduced dollar-for-dollar by Social Security and Railroad Retirement received. |
|---|---|
| Private (employer) pensions | Same $41,200 exclusion and 65+/disability gate as public pensions; the statute defines qualifying plans by federal tax code section, not by employer type. |
| Federal government pensions (FERS/CSRS) | Same Pension Exclusion as public and private pensions, since the statute’s definition is based on the type of plan, not the level of government. |
| Military retirement pay | Partially exempt via a separate subtraction: up to $20,000 for retirees 55 or older, or up to $12,500 for those under 55, not a full exemption. |
| IRA and 401(k)/403(b) distributions | 401(k) and 403(b) plans qualify for the Pension Exclusion above; traditional and Roth IRA distributions do not qualify at all and remain fully taxable regardless of age. |
| General retirement-income exclusion | The Pension Exclusion itself is the general exclusion: $41,200 for 2025, gated on age 65+ or total disability, reduced dollar-for-dollar by Social Security and Railroad Retirement benefits. A separate $1,000 additional personal exemption applies for age 65+ or blindness, and a distinct $15,000 exclusion exists for retired public-safety employees 55+. |
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Social Security is never taxed by Maryland, though it reduces the Pension Exclusion dollar-for-dollar. Social Security has its own rules in every state; see the full breakdown in how Maryland taxes retirement income generally.
Figures verified against the Maryland Comptroller 2025 Resident Instruction Booklet and Md. Code Ann., Tax-General sec. 10-209 and sec. 10-207 on September 30, 2026.
Statute and sources
Governing citation: Md. Code Ann., Tax-General sec. 10-209(b) (Pension Exclusion), sec. 10-207(q) (military retirement).
Read September 4, 2026.
Related: how Maryland taxes retirement income generally · does Maryland tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.