Moving from Maryland

About 198,800 people left Maryland for other states in 2023, and about 162,700 moved in.

  • Two exit steps have a set order.
  • Return the license plates to the MVA first, then cancel the Maryland insurance.
  • For taxes, you file one part-year return that covers both state and county income tax.
  • This page covers every Maryland-origin route we track.
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Maryland at a Glance

Taxes

State income tax6.5%
State sales tax6%
Property tax (eff.)0.92%

Climate

Avg annual temp54°F
Annual precipitation43″

Humid subtropical with hot, humid summers and cold winters.

Cost of Living

COL index121.1 (US=100)
Avg electric bill$166/mo

Why People Move from Maryland

Most Marylanders who leave stay close.

  • In 2023 Virginia took about 28,200, Pennsylvania about 20,700, Florida about 17,400, Texas about 16,100, North Carolina about 12,600, and the District of Columbia about 12,600.
  • Virginia and the District sent a lot of people back, about 21,700 and 20,300, so those routes run both ways.
  • Florida and Texas sent far fewer back, about 8,200 and 5,600.

Maryland costs more than most states.

  • The MERIC first quarter 2026 series put the cost of living index at 121.1, ranked 47th of 51, with housing at 149.1.
  • The Tax Foundation lists state income tax rates from 2.00 to 6.50 percent, plus county income taxes of up to 3.3 percent.
  • The effective property tax rate on owner-occupied homes is 0.92 percent.
  • Maryland also has both an estate tax and an inheritance tax.

Before You Leave Maryland

File Form 502 as a part-year resident

If you end Maryland residency during the year, file Form 502. Put a "P" in the Part-Year box and enter your dates of Maryland residency. Your Maryland year ends the day before you become a resident of another state. Report all federal income, then subtract the income you received after you left. Use the county where you lived on your last day in Maryland for local tax.

Source: Comptroller of Maryland, 2025 Resident Tax Booklet, Instruction 26

Return your license plates

Maryland requires you to return your plates when you move out of the state. Remove both plates. Drop them in a 24-hour tag return box at an MVA office, or mail them. Include the Tag Return Form (VR-027). Keep your receipt or tracking number.

Source: Maryland MVA, Returning Your License Plates

Keep the insurance until MVA closes the plates

Do not cancel your Maryland insurance until you have the tag return receipt. A registered vehicle with no insurance can get an insurance violation notice and a penalty. Unpaid penalties can lead to a suspended registration. They can also go to the state Central Collections Unit, which adds 17%.

Source: Maryland MVA, Auto Insurance Violation Penalties

Expect tax withholding if you sell a Maryland home later

When a nonresident sells Maryland real property, a tax payment on the net proceeds is usually due before the deed can be recorded. The payment counts toward your Maryland income tax for that year. File a Maryland return for the year of the sale to report the gain and claim the payment.

Source: Maryland Tax-General Article 10-912

Tell SDAT if you keep a home here

The Homestead Tax Credit is only for your principal residence. You must live there at least six months of the year, including July 1. If the home is no longer your principal residence, email or call your local Assessment Office.

Source: Maryland SDAT, Homestead Property Tax Credit

Maryland DMV & Registration

Maryland requires you to return your license plates when you move out of the state.

  • Remove both plates and drop them in a 24-hour tag return box at an MVA office with the Tag Return Form (VR-027), or mail them.
  • Keep the insurance until you have the tag return receipt.
  • A registered vehicle without insurance can get an insurance violation penalty.
  • If the registration has more than 12 months left, you can ask for a partial refund on Form VR-021.
  • Your new state sets its own deadline for the license and plates.
Official Maryland DMV →

Frequently Asked Questions

Do I file a Maryland part-year resident tax return?

Yes, if you ended Maryland residency during the year.

  • File Form 502, the same form full-year residents use.
  • Put a "P" in the Part-Year box and enter your dates of Maryland residency.
  • Your Maryland tax year ends the day before you became a resident of another state.
  • Report your full federal adjusted gross income, then subtract the income you received after you left.
  • The Comptroller explains the steps in Instruction 26 of the resident tax booklet.

Does Maryland have an exit tax?

No separate tax applies when you move out.

  • You file a part-year Form 502 for the year you leave.
  • County income tax is part of that return.
  • Use the county where you lived on your last day in Maryland.
  • If you later sell Maryland real property as a nonresident, a tax payment is usually due before the deed can be recorded.
  • That payment counts toward your Maryland income tax for the year of the sale.

Do I have to return my Maryland license plates?

Yes.

  • The MVA requires you to return your plates when you move out of Maryland.
  • You do not need an appointment.
  • Put the plates and the Tag Return Form (VR-027) in a 24-hour tag return box, or mail them.
  • The MVA recommends certified mail with a return receipt.
  • Allow 72 hours, counted in business days, before you look for the tag return receipt on myMVA.

When can I cancel my Maryland car insurance?

After the MVA closes the plates.

  • Keep the insurance active until you have the tag return receipt.
  • Maryland requires insurance for as long as a vehicle is registered, even if you do not drive it.
  • If the MVA finds a gap, you get an insurance violation notice and a penalty.
  • Unpaid penalties can lead to a suspended registration, and the Central Collections Unit adds 17%.

Can I get a refund on my Maryland registration?

Sometimes.

  • You may be eligible if the plates expire more than 12 months from now.
  • Send the Registration Plate Refund Application (VR-021) with the plates.
  • Unused plates with the sticker not on them get a 100% refund.
  • Plates with more than one year left get 50%.
  • The Comptroller sends the refund, usually within 6 weeks.

Where do people move when they leave Maryland?

Using Census ACS 2023 state-to-state flows: Virginia (about 28,200), Pennsylvania (about 20,700), Florida (about 17,400), Texas (about 16,100), North Carolina (about 12,600), and the District of Columbia (about 12,600).

  • The District sent more people to Maryland than it received.
  • Florida and North Carolina each took about twice as many as they sent back, and Texas almost three times as many.