Moving from Maryland to St. Augustine

Maryland has a state income tax plus a county income tax — one of the few states that layers both. Moving to Florida eliminates the combined burden on most retirement income.

Maryland is one of the more expensive states for retirees in the mid-Atlantic region, for a reason that most retirement tax guides understate: Maryland charges both a state income tax and a county income tax, collected together on your Maryland return. Most states have one or the other. Maryland has both. The combined effective rate for many retirees in Montgomery, Howard, and Anne Arundel counties runs 7%–9% on taxable income — comparable to New York State rates. Moving to Florida eliminates the combined bill on retirement income that Maryland taxes.

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Maryland's Two-Layer Income Tax

Maryland State + County Income Tax (2025)Maryland state income tax: 2%–5.75% graduated rates. Maryland county income tax: 2.25%–3.2% depending on county (collected on your state return). Combined top rate for most suburban Maryland counties: approximately 8.0%–8.95%. Maryland exempts Social Security for taxpayers with federal AGI under $100,000 (single) or $150,000 (MFJ) — above those thresholds, Social Security is taxed. Maryland also provides a pension exclusion of up to $36,200 for retirees 65+ (or $34,300 for ages 62–64). Retirement income above those exclusions is taxable at the combined state + county rate.
Annual Taxable Retirement Income (after exclusions)MD State Tax (~5.5%)MD County Tax (~3.0%, est. Montgomery)Combined MD TaxFlorida TaxAnnual Savings
$30,000$1,650$900$2,550$0$2,550
$50,000$2,750$1,500$4,250$0$4,250
$70,000$3,850$2,100$5,950$0$5,950
$90,000$4,950$2,700$7,650$0$7,650

For a Maryland retiree with $70,000 in taxable retirement income (pension and IRA distributions above MD exclusions), the combined state + county tax savings from moving to Florida is approximately $5,950/year. Over 10 years: $59,500 before accounting for any property tax comparison. This is a meaningful number — larger than many buyers expect from a state often perceived as "not that bad" for taxes.

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Property Tax: Maryland vs St. Johns County

Maryland property tax rates vary by county. Montgomery County, Prince George's, and Anne Arundel commonly run $3,500–$8,000/year on homes in the $400,000–$600,000 range. The District of Columbia suburbs carry some of the highest residential tax bills in the region due to high home values.

Home ValueMaryland Suburban (est. 1.1% effective)St. Johns County Year-1 TaxAnnual Difference
$400,000$4,400$4,715FL higher by $315
$450,000$4,950$5,388FL higher by $438
$500,000$5,500$6,062FL higher by $562

Maryland's property tax rates for suburban counties are actually lower than St. Johns County on an effective rate basis — which means property tax is not where Maryland movers save money. The income tax savings are what drive the financial case. The Save Our Homes cap then protects your Florida bill from future increases — which Maryland property taxes do not have an equivalent for.

Where Maryland Buyers Look in St. Augustine

Maryland buyers from the DC suburbs (Montgomery, Prince George's, Howard, Anne Arundel counties) tend to expect quality construction, cultural amenities nearby, and professional community management comparable to HOA-governed communities in Maryland. Proximity to a major airport is also important — Jacksonville International serves the market with flights to BWI, DCA, and IAD. Communities that fit this profile: WaterSong at RiverTown (larger community, river amenity profile) and Reverie at Silverleaf (active new construction, transparent cost structure).

The combined Maryland state + county income tax is the savings that surprises most MD buyers when they actually run the numbers. An agent can help you quantify the full move before you commit.

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Maryland income tax rates and county income tax rates sourced from Maryland Comptroller's office. Pension exclusion amounts for 2025: verify at marylandtaxes.gov. Social Security exemption income thresholds approximate — verify current limits. Property tax rates approximate — vary by county. St. Johns County millage 13.47 mills. Consult a CPA for your specific situation. This page is for research purposes only.

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