try this
    public static Image ScaleImage(Image image, int maxWidth, int maxHeight)
    {
        var ratioX = (double)maxWidth / image.Width;
        var ratioY = (double)maxHeight / image.Height;
        var ratio = Math.Min(ratioX, ratioY);
        var newWidth = (int)(image.Width * ratio);
        var newHeight = (int)(image.Height * ratio);
        var newImage = new Bitmap(newWidth, newHeight);
        Graphics.FromImage(newImage).DrawImage(image, 0, 0, newWidth, newHeight);
        return newImage;
    }
Usage
        Image img = Image.FromStream(stream);
        Image thumb = ScaleImage(img);
        stream.Close();
        stream.Dispose();
        stream = new MemoryStream();
        thumb.Save(stream, System.Drawing.Imaging.ImageFormat.Png);