Maryland LGBTQ+ Financial Planning Guide 2026
This guide covers financial planning issues specific to LGBTQ+ households in Maryland — the January 1, 2013 marriage equality date and its Social Security implications, Maryland's unique $25 domestic partnership registration with the Register of Wills and the inheritance tax exemption it triggers, the $5M Maryland estate tax exemption that diverges sharply from the $15M federal exemption after OBBBA, portability available for married same-sex spouses but not domestic partners, Maryland's 5.75%–6.5% state income tax plus county rates up to 3.2%, and FAMLI paid leave arriving January 2028 with domestic partners explicitly covered. Not legal or tax advice — your specific situation requires qualified professionals.
Maryland holds a specific place in LGBTQ+ history: it was the first state south of the Mason-Dixon line to legalize same-sex marriage through a popular vote, with Maryland voters approving Question 6 on November 6, 2012. Same-sex marriages began on January 1, 2013. For financial planning, that date matters because it has been running for over 13 years — well past the one-year spousal Social Security clock and, for couples who married early and have since divorced, approaching the 10-year divorced-spouse threshold. But beyond the historical significance, Maryland presents a planning environment with two issues that require immediate attention for domestic-partner households: a $25 Register of Wills registration that eliminates the state's 10% inheritance tax, and a Maryland estate tax capped at $5M while the federal exemption is $15M — a gap that exposes middle-wealthy Maryland households to state estate tax at the very moment they owe nothing federally.
1. January 1, 2013: Maryland's Marriage Equality Date and Social Security Implications
How Maryland got there — and why it matters in 2026
Maryland enacted the Civil Marriage Protection Act in 2012, which legalized same-sex marriage — but Maryland's constitution allowed opponents to put the law to a referendum. On November 6, 2012, Maryland voters approved Question 6 by a 52–48 margin, making Maryland the first state south of the Mason-Dixon line where voters themselves chose to extend marriage rights to same-sex couples. Same-sex marriages began in Maryland on January 1, 2013.1
The financial planning significance of that date is Social Security. The Social Security Administration uses the actual legal marriage date for benefit calculations — not Obergefell's June 26, 2015 date. For same-sex couples who married in Maryland on or after January 1, 2013:
- One-year spousal benefit clock: A couple married January 1, 2013 satisfied the one-year spousal clock by January 2, 2014 — over 11 years ago. If your SSA record incorrectly shows June 26, 2015 as your marriage date instead of your actual Maryland marriage date, contact the Social Security Administration with your Maryland marriage certificate. The spousal and survivor benefit calculation depends on your actual marriage date.
- Ten-year divorced-spouse clock: A Maryland same-sex couple who married January 1, 2013 and later divorced satisfies the 10-year divorced-spouse Social Security benefit rule on January 1, 2023 — if the marriage lasted continuously for 10 years. Pre-Obergefell Maryland same-sex marriages count from the actual Maryland marriage date for this calculation. Use our Same-Sex Couple Social Security Strategy Calculator to model divorced-spouse eligibility amounts and claiming strategy.
2. Maryland DP Registration: $25 with the Register of Wills — and Why It Matters
Maryland's unique DP registration mechanism
Maryland has no statewide domestic partnership registry in the traditional sense — there is no state agency that issues a DP card conferring legal status equivalent to marriage. However, Maryland has something more targeted and financially significant: domestic partners in Maryland can register with the Register of Wills in their county of residence by filing a notarized Declaration of Domestic Partnership and paying a $25 fee. This registration, created under Maryland law, has a specific and substantial financial effect: as of October 1, 2023, registered domestic partners are completely exempt from Maryland's 10% inheritance tax on all property inherited from the deceased partner.2
How to register
The process is straightforward. Both partners must prepare a Declaration of Domestic Partnership that states each partner's name, date of birth, home address, and Social Security number — and sign it before a notary public. The signed, notarized declaration is filed with the Register of Wills in the Maryland county where you reside, along with the $25 filing fee. The Register of Wills issues a Certificate of Registered Domestic Partnership. Keep the certificate with your estate documents.
Maryland counties with active Register of Wills offices for this purpose include Montgomery, Howard, Baltimore City, Prince George's, and others. The statewide Register of Wills website (registers.maryland.gov) provides county-specific contact information and the RW101 form.
What registration does — and does not — give you
Maryland DP registration via the Register of Wills is specifically designed to address the inheritance tax gap for domestic partners. As of October 1, 2023, a surviving registered domestic partner inherits all property from their deceased partner — whether through a will, a trust, as a named beneficiary, or any other mechanism — free of Maryland's 10% inheritance tax. This covers:
- Property passing through a will (personal property, investments, real estate)
- Assets passing via beneficiary designation (life insurance, IRAs, 401(k)s, bank POD accounts)
- Assets held in trust for the surviving partner
- Joint tenancy or survivorship property interests
What registration does NOT confer: Maryland Register of Wills DP registration does not create a legal marriage equivalent. It does not entitle domestic partners to Maryland estate tax portability (see Section 4), Social Security spousal or survivor benefits, federal ERISA protections, Medicaid community spouse protections, or federal tax joint-filing status. It is narrowly targeted at eliminating Maryland's 10% inheritance tax — and for that purpose, it is effective and worth doing immediately for any Maryland domestic-partner couple.
3. Maryland Inheritance Tax: 10% on Unregistered DPs, Zero on Registered DPs
Maryland is one of six states with both estate tax and inheritance tax
Maryland is one of only six states in the U.S. that imposes both a state estate tax (paid by the decedent's estate based on total estate size) and a state inheritance tax (paid by the recipient based on their relationship to the decedent). The Maryland inheritance tax rate is 10% of the "clear value" of property inherited by a non-exempt beneficiary. For LGBTQ+ households, the inheritance tax can create a more immediate planning burden than the estate tax for moderate-wealth couples because it applies to individual assets — life insurance proceeds, IRA accounts, personal property — regardless of the estate's total size.3
Who is exempt from Maryland inheritance tax
Maryland exempts these beneficiaries from inheritance tax:
- Surviving spouse of a legally married couple
- Children, grandchildren, great-grandchildren, stepchildren
- Parents, grandparents
- Siblings (including half-siblings)
- The spouse of a decedent's child
- Charities qualifying under §501(c)(3)
- Registered domestic partners (as of October 1, 2023)
Who pays Maryland inheritance tax — including unregistered DPs
Any beneficiary not on the exempt list pays 10% of what they inherit. For domestic partners who have NOT registered with the Maryland Register of Wills, this means every dollar that passes to a surviving domestic partner through a will, beneficiary designation, or trust is subject to 10% Maryland inheritance tax. A domestic partner who inherits a $200,000 IRA account and a $300,000 life insurance policy owes $50,000 in Maryland inheritance tax on those two assets alone — on top of any federal income tax owed on the IRA distributions.3
The only pre-2023 inheritance tax carve-out for unregistered DPs was for jointly-held primary residence property passing by right of survivorship — but this narrow exception did not cover individually-titled property, retirement accounts with beneficiary designations, or life insurance proceeds. After October 1, 2023, the cleanest solution is Register of Wills registration, which covers everything.
Interaction with beneficiary designations
Retirement accounts (IRAs, 401(k)s), life insurance policies, and bank POD/TOD accounts pass directly to named beneficiaries outside of probate — they bypass the will entirely. But Maryland inheritance tax still applies to these assets when a non-exempt beneficiary (including an unregistered domestic partner) is the named beneficiary. Registration eliminates this exposure. After registering, verify that your beneficiary designations name your registered domestic partner to ensure the property actually passes to them; the registration only creates the exemption — the beneficiary designation determines whether the partner receives the asset.
4. Maryland Estate Tax: $5M Exemption vs. $15M Federal — The $10M Planning Gap
Maryland's estate tax diverges sharply from federal after OBBBA
The One Big Beautiful Bill Act (OBBBA, July 2025) permanently raised the federal estate, gift, and GST tax exemption to $15M per person. Maryland's estate tax exemption is not linked to the federal exemption and was not changed by OBBBA. Maryland's estate tax exemption remains frozen at $5 million per person — not indexed for inflation, not adjusted for OBBBA. This creates a $10M planning gap: a Maryland resident with a $12M estate owes zero federal estate tax (under the $15M individual exemption) but owes Maryland estate tax on $7M above the $5M state exemption.4
Maryland estate tax rates: 0.8% to 16%
Maryland's estate tax follows a graduated rate schedule based on the pre-2001 federal estate tax table. Rates begin at 0.8% on the taxable estate just above the $5M exemption and escalate to a top rate of 16% on the portion of the taxable estate above approximately $10M. The effective combined Maryland estate tax rate on a $7M taxable estate (representing a $12M gross estate after the $5M exemption) is substantially lower than 16% because the lower brackets apply first. An estate of $15M would have a $10M taxable estate in Maryland and face rates blending from 0.8% through 16% — with a total Maryland estate tax of roughly $1.3M to $1.5M depending on deductions, while owing $0 in federal estate tax.4
Maryland estate tax portability: available for married same-sex spouses, not domestic partners
Maryland allows portability of the estate tax exemption for legally married surviving spouses. For decedents dying after December 31, 2018, the executor of a Maryland resident's estate can elect to transfer the deceased spouse's unused Maryland estate tax exemption (the "Deceased Spousal Unused Exclusion" or DSUE) to the surviving legally married spouse by filing a timely Maryland estate tax return (Form MET-1) — even if no estate tax is owed at the first death. The surviving spouse then has both their own $5M Maryland exemption and any unused exemption from the deceased spouse, allowing a married same-sex couple to shelter up to $10M from Maryland estate tax combined.5
Domestic partners — including registered domestic partners — cannot use Maryland estate tax portability. They are not legally married spouses for estate tax purposes. Each domestic partner has an individual $5M Maryland estate tax exemption, with no ability to pick up a deceased partner's unused exemption. For a domestic-partner household with combined net worth between $5M and $10M, this creates a specific planning problem:
- A married same-sex couple at $9M combined ($4.5M each) has no Maryland estate tax exposure — each estate is under the $5M exemption, or can combine exemptions via portability if assets are unequal.
- A domestic-partner household at $9M combined ($4.5M to the higher-wealth partner, $4.5M to the lower-wealth partner) has no estate tax if each individual estate stays under $5M — but if assets are unevenly split (one partner at $7M, one at $2M), the $7M partner's estate faces $2M of Maryland taxable estate with no ability to use the lower-wealth partner's unused exemption.
Credit shelter trust: the domestic-partner estate tax planning tool
Because domestic partners cannot use Maryland portability, DP households with combined net worth approaching $5M per partner need a credit shelter trust strategy. At the first partner's death, a credit shelter (or "bypass") trust can shelter the deceased partner's assets up to $5M in a trust that benefits the surviving partner during their lifetime — removing those assets from the surviving partner's taxable estate for Maryland purposes. Without this structure, assets passing outright to the surviving partner inflate the survivor's estate toward and beyond the $5M individual exemption. See our LGBTQ+ Trust Planning guide for the credit shelter trust mechanics and our Advanced Estate Planning guide for how SLATs and IDGTs serve as alternatives for domestic-partner households.
Federal marital deduction gap persists at $15M+
For the highest-wealth Maryland LGBTQ+ households — combined assets above $30M — the federal marital deduction gap becomes relevant again. The IRC §2056 unlimited marital deduction allows property to pass between legally married spouses free of estate tax regardless of amount. Domestic partners cannot use the marital deduction. At the current $15M individual federal exemption, a DP household would need a combined estate above $30M before federal exposure arises — but for Maryland purposes, the $5M threshold per person means Maryland estate tax exposure begins at a much lower combined wealth level. See our LGBTQ+ Inheritance and Estate Tax guide for the marital deduction analysis.
5. Income Tax: 5.75%–6.5% State + County, Roth Conversion Analysis, IRMAA, No SS Tax
Maryland income tax structure 2026
Maryland taxes income through a combination of state income tax and a county "piggyback" tax collected alongside the state return. The state income tax uses a progressive bracket structure with rates from 2% on the first $1,000 of taxable income through 5.75% on income above $250,000 (single filers). Maryland's 2025 legislature added two new top brackets that take effect for 2026: 6.25% on income above $500,000 and 6.5% on income above $1,000,000. County piggyback rates range from 1.75% (in lower-tax counties) to 3.2% (Montgomery County, Prince George's County, Howard County, and Baltimore City). The combined top state-plus-county rate for high earners in the Washington and Baltimore metro areas is 6.5% state + 3.2% county = 9.7% — among the highest combined rates in the mid-Atlantic region.6
Maryland's 2025 Budget Reconciliation Act also added a 2% capital gains surtax on Maryland residents with federal adjusted gross income above $350,000, bringing the effective Maryland capital gains rate to approximately 9.75% (7.75% base + 2% surtax) at those income levels before the county rate. Combined with federal long-term capital gains rates (0%, 15%, or 20%), the all-in rate on investment gains for high-income Maryland residents approaches 29.75% for earners above $350K.6
The Maryland standard deduction for single filers is $2,550 — one of the lowest standard deductions in any state. Most Maryland taxpayers above modest income levels itemize on their state returns or simply forgo this small deduction.
Maryland does not tax Social Security benefits
Maryland does not impose state income tax on Social Security benefits, regardless of income level. This is a meaningful advantage for Maryland retirees — particularly domestic partners who file as single filers in retirement and whose individual-filer status creates IRMAA exposure before married counterparts. Maryland's SS income tax exemption eliminates one planning complexity that states like Connecticut or Minnesota impose on retirees at certain income levels.
Domestic partners: single filers at the state and county level
Maryland domestic partners each file individual Maryland income tax returns as single filers. There is no Maryland DP joint return. Unlike California registered domestic partners (who can file a joint California return with community property income-splitting) or Oregon and New Jersey DPs (who file joint state returns), Maryland DPs receive no state-level bracket equalization. A DP couple where one partner earns $400,000 and the other earns $150,000 each pays Maryland tax on their individual income at the applicable state rate plus their county rate — the higher earner at up to 9.7% combined, the lower earner at approximately 8.95% combined — with no income averaging or bracket equalization available.
Roth conversion strategy for domestic partners at Maryland rates
Maryland's high combined rate (up to 9.7%) creates a significant Roth conversion cost — but domestic-partner households face an even more compelling reason to convert anyway. The 10-year inherited IRA forced-distribution rule means a surviving domestic partner must withdraw an entire inherited IRA over 10 years, paying both federal and Maryland income tax (up to 9.7% combined state+county) on every dollar — with no spousal rollover available. Pre-tax IRA balances converted to Roth now cost Maryland income tax at today's rate, but eliminate the 10-year forced distribution for the surviving partner. The question is whether today's Roth conversion rate plus federal marginal rate is lower than the expected combined federal + Maryland rate on distributions over the 10-year inherited IRA window.
Use our Roth Conversion Planner to model this tradeoff and our Domestic Partner Inherited IRA Tax Calculator to quantify the 10-year tax gap between the forced-distribution rule and a spousal rollover scenario. Factor in Maryland's combined rate when estimating the conversion cost for each scenario.
The IRMAA single-filer trap for Maryland domestic partners
Medicare IRMAA surcharges use different income thresholds for single filers ($109,000 MAGI) and married filing jointly ($218,000 MAGI). Maryland domestic partners each file as single filers — both for federal and for Maryland. A Roth conversion that pushes one partner's MAGI over $109,000 triggers IRMAA Part B and Part D surcharges on top of Maryland's income tax cost. For DP households planning multi-year Roth conversion programs, keeping each partner's individual MAGI below $109,000 per year avoids IRMAA exposure. Use our Medicare IRMAA Calculator to model the combined Maryland tax + IRMAA exposure at different conversion amounts for DP versus married filers.
6. FAMLI Paid Leave: Coming January 2028, Domestic Partners Explicitly Covered
Maryland's FAMLI program is not yet paying benefits
Maryland's Family and Medical Leave Insurance program (Maryland FAMLI) was enacted as the Time to Care Act, with several rounds of amendments to its implementation timeline. As of July 2026, FAMLI is not yet in effect. Payroll contributions (premiums) begin January 1, 2027. The program begins paying benefits on January 3, 2028. Until then, Maryland employees — including domestic partners who would be eligible for partner-caregiving leave — do not have access to Maryland FAMLI paid leave benefits.7
What FAMLI will provide starting January 2028
When Maryland FAMLI launches in 2028:
- Maximum weekly benefit: $1,000 per week (through at least mid-2027; adjusted annually thereafter)
- Maximum leave: 12 weeks per benefit year for most qualifying reasons; up to 24 weeks for a combination of the employee's own serious health condition and other qualifying reasons
- Domestic partner coverage: The 2023 Time to Care Act amendments explicitly include "domestic partner" in the definition of "family member." A Maryland employee can take paid FAMLI leave to care for a seriously ill domestic partner, bond with a new child, or address qualifying urgent family needs — with benefits at up to $1,000/week
- Eligibility: Employees who have worked at least 680 hours in Maryland over the prior 12 months
- Employee contribution rate: Set in 2027 based on program funding requirements; the contribution is an employee payroll deduction, similar to Social Security
The gap: what Maryland domestic partners do right now
Until January 2028, Maryland employees who need to take leave to care for a domestic partner have limited options:
- Federal FMLA: Covers legally married same-sex spouses for spousal caregiving. Does NOT cover domestic partners for partner caregiving — only for the employee's own health condition or for a qualifying biological/legal family member.
- Maryland state FMLA equivalent: Maryland does not currently have a state family and medical leave law that expands on federal FMLA to cover domestic partner caregiving for job protection purposes. The federal FMLA ceiling applies.
- Employer-specific policies: Some Maryland employers — particularly large federal contractors, tech companies, and nonprofits in the DC metro area — offer paid leave for domestic partner caregiving through their own employee benefit plans. Check your employer's leave policy and open enrollment documents before assuming you have no leave rights.
- Short-term disability insurance: Covers the employee's own health condition, not caregiving. But if a domestic partner also carries individual STD coverage, both partners have STD protection for their own health events without relying on employer-provided leave.
7. Medicaid CSRA: $162,660 for Married Spouses, Gap for Domestic Partners
Maryland Medicaid expansion
Maryland expanded Medicaid under the ACA (effective January 1, 2014), covering adults at or below 138% of the federal poverty level. Maryland's Medicaid program (HealthChoice and other managed care programs) covers a broad population, including gender-affirming care for eligible enrollees under Maryland's state-level protections — which continue to apply independently of the November 2025 federal ACA Section 1557 regulatory vacatur.8
Community Spouse Resource Allowance: married couples protected, domestic partners are not
The federal Medicaid Community Spouse Resource Allowance (CSRA) protects an at-home spouse from impoverishment when their legally married partner needs nursing-home-level Medicaid care. The 2026 federal CSRA floor is $162,660 in countable assets. For legally married same-sex spouses in Maryland, the CSRA applies fully — the community spouse can retain up to $162,660 in countable assets while the institutionalized spouse spends down to Medicaid eligibility. Maryland also provides the Minimum Monthly Maintenance Needs Allowance (MMMNA) to ensure the community spouse retains sufficient monthly income.
Maryland domestic partners — including those registered with the Register of Wills — are not treated as community spouses for Medicaid. The Medicaid CSRA is a federal protection defined by state law recognition of the marital relationship. Register of Wills DP registration creates the inheritance tax exemption but does not transform domestic partners into legal spouses for Medicaid purposes. If one partner in a Maryland DP household needs long-term care Medicaid, the other partner's assets are not protected by the CSRA. The Medicaid applicant must spend down to the individual asset limit without shielding the community partner's savings up to $162,660.
The practical planning implication: Maryland DP households need to account for the full individual spend-down scenario when sizing long-term care insurance needs — not the married-couple CSRA protection floor. Use our Medicare and Long-Term Care Planning guide for LTC insurance sizing and self-insurance reserve analysis for LGBTQ+ households. Use our Marriage vs. DP Financial Calculator to quantify the cumulative annual financial gap between Maryland DP status and marriage — including the Medicaid CSRA, SS spousal benefit, inherited IRA, and imputed income differentials.
Get matched with a Maryland LGBTQ+ financial advisor
Maryland presents a layered planning environment for LGBTQ+ households. The January 1, 2013 marriage equality date means many Maryland same-sex couples have a 13+ year SS marriage clock — verify your SSA record reflects your actual marriage date, not June 26, 2015. Maryland domestic partners should register with the Register of Wills for $25 to eliminate the 10% inheritance tax — the highest-ROI financial planning action available in Maryland right now. The $5M Maryland estate tax exemption sits $10M below the federal $15M threshold, with portability available for married same-sex spouses but not domestic partners — creating a planning gap that credit shelter trusts must address for DP households approaching $5M per partner. Maryland's 5.75%–6.5% state income tax plus county rates up to 3.2% makes Roth conversion cost-benefit analysis different than in lower-tax states, but the 10-year inherited IRA forced distribution for DPs still builds urgency for converting pre-tax balances before a partner's death. FAMLI arrives in January 2028 with DPs explicitly covered — but the gap today is real, and employer leave policies should be reviewed now. An LGBTQ+-affirming fee-only advisor who understands the interplay of Maryland's inheritance tax DP registration, the estate tax portability gap for DPs, and the Roth conversion calculus for high-combined-rate Maryland will build a more complete plan than a general advisor.
Sources
- Maryland Civil Marriage Protection Act: enacted 2012. Maryland Question 6: approved by voters November 6, 2012 (52–48%). Same-sex marriages effective January 1, 2013. Maryland State Archives — "Maryland Question 6 (2012)": msa.maryland.gov. Wikipedia — Same-sex marriage in Maryland: wikipedia.org. Social Security Administration — same-sex couples benefits: ssa.gov. SSA POMS: PR 02712.021 — Maryland. Obergefell v. Hodges, 576 U.S. 644 (June 26, 2015) — federal recognition of all state same-sex marriages. Pre-Obergefell state marriages recognized from actual state marriage date for SS calculations.
- Maryland Register of Wills domestic partnership registration: statewide process, $25 fee, notarized Declaration of Domestic Partnership (Form RW101). Maryland Register of Wills — Registered Domestic Partnerships: registers.maryland.gov. Maryland Register of Wills — Domestic Partnership Registration publication: registers.maryland.gov (PDF). As of October 1, 2023 (Maryland legislation): registered domestic partners are exempt from Maryland 10% inheritance tax on all property inherited from deceased partner, whether through will, trust, beneficiary designation, or right of survivorship. Previously, unregistered DPs were subject to the 10% inheritance tax except for jointly-held primary residence with right of survivorship.
- Maryland inheritance tax: 10% of clear value of inherited property for non-exempt beneficiaries. Tax-General Article, §§7-201 et seq. Exempt: surviving spouse of legally married couple, lineal descendants, lineal ancestors, siblings, spouse of decedent's child, §501(c)(3) charities, and (as of October 1, 2023) registered domestic partners. Unregistered domestic partners: 10% on all inherited property except jointly-held primary residence with right of survivorship. Maryland is one of 6 states with both estate tax and inheritance tax. Maryland Register of Wills — Inheritance Tax: registers.maryland.gov. Nolo — Maryland Inheritance Tax: nolo.com. Howard County Register of Wills — Domestic Partners Probate Procedures and Inheritance Taxes: registers.maryland.gov (PDF).
- Maryland estate tax 2026: $5,000,000 exemption per person (Tax-General Article §7-309); not indexed for inflation; not changed by OBBBA. Graduated rate schedule (0.8% to 16%) based on pre-2001 federal estate tax table. Maryland is one of a small number of states that did not link its exemption to the federal exemption post-OBBBA — a $10M gap vs. the federal $15M individual exemption. Federal OBBBA (One Big Beautiful Bill Act, July 2025): permanent $15M federal estate/gift/GST exemption. Scheuerman Law — "Maryland Estate Tax 2026: Exemptions, Planning, and Key Considerations": scheuermanlaw.com. Nolo — Maryland Estate Tax: nolo.com. SmartAsset — Maryland Estate Tax: smartasset.com. Frame & Frame — Maryland Estate Tax vs. Federal Estate Tax [2026]: frameandframe.com.
- Maryland estate tax portability: available for decedents dying after December 31, 2018. Surviving legally married spouse can elect to use deceased spouse's unused Maryland estate tax exemption (DSUE) by filing a timely Maryland estate tax return (MET-1), even if no tax is owed. Married same-sex couples: combined Maryland exemption up to $10M via portability election. Domestic partners (including Register of Wills registered DPs): not legally married spouses for estate tax purposes — portability not available; each partner has individual $5M Maryland exemption only. Credit shelter trust is standard planning tool for DP households with combined assets approaching $5M per partner. DBL Lawyers — "Federal and Maryland Estate Tax Portability in a Nutshell": dbllawyers.com. ZM Law Group — "Portability Estate Tax Strategies for Maryland Couples in 2026": zmatlaw.com. IRC §2056 — unlimited federal marital deduction (legally married spouses only). Rev. Proc. 2022-32 — 5-year federal portability election window (federal; Maryland has its own filing requirement).
- Maryland income tax 2026: progressive state rates 2%–5.75% (below $250K single), 6.25% on income $250,001–$1M, 6.5% on income above $1M (two new top brackets added by 2025 Maryland Budget Reconciliation Act). County piggyback rates: 1.75% (lower-tax counties) to 3.2% (Montgomery County, Prince George's County, Howard County, Baltimore City). Combined state + county top rate: 9.7% (6.5% + 3.2%) for highest earners in DC/Baltimore metro counties. 2025 BRA also added 2% Maryland capital gains surtax for filers with federal AGI above $350,000. Maryland standard deduction: $2,550 single. Maryland does not tax Social Security benefits. Maryland Comptroller — 2026 Maryland State and Local Income Tax Withholding: marylandcomptroller.gov. Maryland Comptroller — Tax Alert: Changes to Standard and Itemized Deductions and State and Local Income Tax Rates from 2025 Legislative Session: marylandcomptroller.gov (PDF). Tax Foundation — Maryland 2026: taxfoundation.org. 2026 federal IRMAA thresholds: $109,000 single / $218,000 MFJ (CMS). IRS Rev. Proc. 2025-32 — 2026 federal brackets.
- Maryland FAMLI (Time to Care Act): enacted 2022; amended 2023 (added domestic partner as "family member") and delayed implementation timeline. Payroll contributions (employee deductions) begin January 1, 2027. Benefits begin January 3, 2028. Maximum weekly benefit $1,000 for benefit period beginning July 1, 2026 (adjusted annually). 12 weeks paid leave per year (up to 24 weeks combining employee health condition with qualifying reasons). Eligibility: 680 hours worked in Maryland over prior 12 months. Domestic partner explicitly included in "family member" definition as of 2023 amendments. Maryland FAMLI official site: paidleave.maryland.gov. Maryland Department of Labor — contribution rate announcement: labor.maryland.gov. Federal FMLA: 29 U.S.C. §2611 — definition of "spouse" excludes domestic partners.
- Maryland Medicaid (HealthChoice): expanded under ACA, effective January 1, 2014 (138% FPL). Maryland CSRA 2026: $162,660 for legally married community spouses (2026 federal floor). Domestic partners — including Register of Wills registered DPs — not recognized as community spouses for Medicaid; individual asset limit applies to Medicaid applicant (~$2,500 countable assets for Maryland single individuals). Maryland Department of Health — Medicaid: health.maryland.gov. Federal CSRA: 42 U.S.C. §1396r-5 (community spouse protection; "spouse" defined by state law marriage recognition). Maryland ACA Section 1557: state-level gender-affirming care Medicaid coverage continues under Maryland's own non-discrimination provisions independent of federal regulatory vacatur (November 2025). SECURE 2.0 §107 — RMD age 73 (born 1951–1959) / 75 (born 1960+). T.D. 10001 (July 2024) — inherited IRA annual RMD rules for non-spouse beneficiaries past RBD. OBBBA (July 2025) — $15M federal estate/gift exemption permanent.
Values verified July 2026. Maryland same-sex marriage: January 1, 2013. Maryland Register of Wills DP registration: $25 fee, notarized Declaration of Domestic Partnership; eliminates 10% inheritance tax for registered DPs on all inherited assets as of October 1, 2023. Maryland inheritance tax: 10% on non-exempt beneficiaries including unregistered domestic partners; exempt beneficiaries include spouse, lineal family, siblings, and registered DPs (since 10/1/2023). Maryland estate tax 2026: $5M exemption per person, not indexed, not OBBBA-linked; graduated rates 0.8%–16%; portability available for legally married surviving spouses (not DPs). Maryland income tax 2026: state rates 2%–5.75% (under $250K single), 6.25% ($250K–$1M), 6.5% (above $1M); county rates 1.75%–3.2%; no state tax on Social Security benefits; 2% capital gains surtax for federal AGI above $350K; standard deduction $2,550 single. Maryland FAMLI: payroll contributions begin January 1, 2027; benefits begin January 3, 2028; $1,000/week maximum; 12 weeks; domestic partners covered as "family members." Medicaid CSRA 2026: $162,660 for legally married community spouses; not extended to domestic partners (including registered DPs). Federal IRMAA 2026: $109,000 single / $218,000 MFJ. IRS Rev. Proc. 2025-32 — 2026 federal brackets and limits. OBBBA (July 2025) — $15M permanent federal exemption.
Maryland LGBTQ+ Financial Planning Checklist
For married same-sex couples in Maryland
- Verify your SSA record shows your actual Maryland marriage date if you married between January 1, 2013 and June 25, 2015. Pre-Obergefell Maryland marriages are recognized for Social Security spousal, survivor, and divorced-spouse calculations from the actual marriage date. Log in to mySocialSecurity.gov and bring your Maryland marriage certificate to your local SSA office if the date shows June 26, 2015 instead of your actual ceremony date.
- Review your estate plan for the OBBBA impact. If your documents were drafted when the federal exemption was $5M–$12.92M and include credit shelter trust provisions triggered at the federal exemption amount, those trusts may now fund at $15M — not the $5M Maryland exemption you may still need to plan around. Your Maryland estate tax planning should be calibrated to the $5M Maryland threshold, even though federal exposure doesn't arise until $15M per person.
- Elect Maryland estate tax portability at the first spouse's death. The executor must file a Maryland estate tax return (MET-1) within the applicable time limit — even if no Maryland estate tax is owed — to transfer the deceased spouse's unused Maryland estate tax exemption to the surviving spouse. Filing is the only way to preserve portability; it is not automatic.
For domestic partners in Maryland
- Register with the Register of Wills immediately. File a notarized Declaration of Domestic Partnership with the Register of Wills in your Maryland county of residence ($25 fee). This single action eliminates Maryland's 10% inheritance tax on all property your partner inherits from you — through a will, beneficiary designation, trust, or right of survivorship. See Section 2 for the filing process.
- After registering, update your beneficiary designations on all retirement accounts, life insurance policies, and bank accounts to ensure your partner is named. Registration creates the inheritance tax exemption — beneficiary designations determine whether the assets actually pass to your partner rather than to your estate or biological heirs.
- Model the Maryland estate tax credit shelter trust need. If either partner's individual assets approach $5M, a credit shelter trust at the first partner's death can shelter the deceased partner's estate up to the $5M Maryland exemption in trust for the surviving partner's benefit — without being pulled into the surviving partner's taxable estate. See our LGBTQ+ Trust Planning guide.
- Model the Roth conversion math at Maryland's combined state + county rate. Use our Domestic Partner Inherited IRA Tax Calculator to quantify the 10-year forced-distribution tax gap for your partner, and our Roth Conversion Planner to size annual conversion amounts that stay below the $109K IRMAA single-filer threshold.
- Review your employer's leave policy for domestic partner caregiving coverage before January 2028. Maryland FAMLI launches in 2028 with DP coverage — but until then, your ability to take paid leave to care for a seriously ill partner depends on your employer's own leave policy, not Maryland law. Federal FMLA does not cover DP caregiving.
- Size long-term care insurance needs without the Medicaid CSRA floor. As an unmarried domestic partner in Maryland, you receive no Medicaid Community Spouse Resource Allowance — the $162,660 floor that protects married spouses when one needs nursing-home Medicaid. Model the full spend-down scenario using our Medicare and Long-Term Care Planning guide.
- Execute the five-document estate stack: Maryland durable financial power of attorney, Maryland healthcare proxy, Maryland HIPAA authorization, Maryland advance directive, and a last will and testament for each partner. Maryland intestacy defaults pass assets to biological and legal family — not a domestic partner. See our Powers of Attorney and Healthcare Proxy guide.