County income tax is local income tax paid by Montgomery County residents through Maryland’s income tax system.
It is part of the county’s tax revenue, along with property tax and other taxes. The FY27 Recommended fiscal plan says the County Executive proposes a local personal income tax rate of 3.3 percent, up from 3.2 percent, if adopted, effective January 2027.
Why It Matters
Income tax is one of the major local revenue sources in the county budget. It should be read separately from property tax because it works through Maryland’s income tax system.
Common Misunderstanding
County income tax is not the same thing as property tax. It is a separate revenue source, and the state administers collection as part of Maryland income tax.