Free Maryland Payroll Tax Calculator

How to Use the Maryland Payroll Tax Calculator (Step-by-Step)

Understanding your paycheck is crucial, and our Maryland Payroll Tax Calculator simplifies the process. Follow these easy steps to get an accurate estimate of your net pay:

Step 1: Enter Your Location and Filing Status

Country: Ensure “United States” is selected. (This is pre-filled.)
Province/State: Choose “Maryland” from the dropdown menu. (This is pre-filled.)
Federal Filing Status: Select your current federal filing status (e.g., Single, Married Filing Jointly, etc.) from the dropdown. This reflects how you file your federal taxes.
Federal Allowances: Enter the number of federal allowances you are claiming. This number affects the amount of federal income tax withheld from your paycheck. (Use your W-4 form as a guide.)
State Filing Status: Choose your current Maryland state filing status from the dropdown. It may be the same as your federal status, but confirm based on your state tax situation.
State Allowances: Enter the number of state allowances you are claiming. This number affects the amount of Maryland state income tax withheld from your paycheck.

Step 2: Input Your Pay Information

Annual Pay Periods: Select how often you receive your paycheck (e.g., Bi-Weekly (26), Weekly, Monthly) from the dropdown. This is essential for accurate annual calculations.
Gross Wage/Pay Period: Enter your total earnings before any deductions for the pay period. This is your gross pay.
Pay Date: Select the pay date using the calendar tool. This is for your reference and does not affect the tax calculations.

Step 3: Calculate Your Taxes

Click the “Calculate” button.
The calculator will instantly display your estimated:
- Pay Period Section:
  - Taxable Income: The portion of your income subject to taxes for the pay period.
  - Federal Tax: The estimated federal income tax withheld for the pay period.
  - State Tax: The estimated Maryland state income tax withheld for the pay period.
  - Total Tax: The sum of federal and state taxes for the pay period.
- Annual Section:
  - Taxable Income: Your estimated annual taxable income.
  - Federal Tax: Your estimated annual federal income tax.
  - State Tax: Your estimated annual Maryland state income tax.
  - Total Tax: Your estimated total annual taxes.

Step 4: Review and Adjust (If Needed)

Carefully review the calculated results.
If you need to make changes, adjust the input fields and click “Calculate” again.
To start a new calculation with different parameters, click the “New Calculation” button.

Important Notes:

This calculator provides estimates based on the information you provide.
Actual tax amounts may vary based on individual circumstances and additional deductions.
For precise tax calculations, consult a tax professional or refer to official IRS and Maryland Comptroller resources.
Keep your W-4 form updated to ensure accurate tax withholding.

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Maryland State Income Tax (SIT) – 2025 Rates
All Filers
$0 - $1,000	2.00% of excess over $0
$1,000 - $2,000	$20.00 + 3.00% of excess over $1,000
$2,000 - $3,000	$50.00 + 4.00% of excess over $2,000
Single / Married (Filed Separately)
$3,000 - $100,000	$90.00 + 4.75% of excess over $3,000
$100,000 - $125,000	$4,697.50 + 5.00% of excess over $100,000
$125,000 - $150,000	$5,947.50 + 5.25% of excess over $125,000
$150,000 - $250,000	$7,260.00 + 5.50% of excess over $150,000
$250,000 or greater	$12,760.00 + 5.75% of excess over $250,000
Head of Household / Married (Filed Jointly)
$3,000 - $150,000	$90.00 + 4.75% of excess over $3,000
$150,000 - $175,000	$7,072.50 + 5.00% of excess over $150,000
$175,000 - $225,000	$8,322.50 + 5.25% of excess over $175,000
$225,000 - $300,000	$10,947.50 + 5.50% of excess over $225,000
$300,000 or greater	$15,072.50 + 5.75% of excess over $300,000
Additional Maryland SIT Details
Valid Filing Statuses	S = Single M = Married D = Employed in Delaware or other nonreciprocal state N = Nonresident single NM = Nonresident married
Exemptions	Individuals not subject to withholding under the Internal Revenue Code Interstate carrier employees Low-income singles and students Low-wage employees Persons owing no Maryland taxes Nonresidents from reciprocating states (D.C., PA, VA, WV) Spouses of nonresident military servicepersons Emergency service providers in designated state-of-emergency areas
Form W-4	Form MW507
Reconciliation Frequency	Annual

Understanding Maryland State Income Tax (SIT)

Maryland’s state income tax (SIT) operates on a progressive tax system. This means that as your income increases, the tax rate applied to those higher earnings also increases. To accurately calculate your Maryland SIT, it’s essential to understand the tax brackets and your filing status.

Maryland Income Tax Brackets for 2025

The following outlines the Maryland state income tax rates for the 2025 tax year, categorized by filing status and income brackets:

All Filers:
- $0 – $1,000: 2.00% of the excess over $0
- $1,000 – $2,000: $20.00 + 3.00% of the excess over $1,000
- $2,000 – $3,000: $50.00 + 4.00% of the excess over $2,000
Single / Married (filed separately):
- $3,000 – $100,000: $90.00 + 4.75% of the excess over $3,000
- $100,000 – $125,000: $4,697.50 + 5.00% of the excess over $100,000
- $125,000 – $150,000: $5,947.50 + 5.25% of the excess over $125,000
- $150,000 – $250,000: $7,260.00 + 5.50% of the excess over $150,000
- $250,000 or greater: $12,760.00 + 5.75% of the excess over $250,000
Head of Household / Married (filed jointly):
- $3,000 – $150,000: $90.00 + 4.75% of the excess over $3,000
- $150,000 – $175,000: $7,072.50 + 5.00% of the excess over $150,000
- $175,000 – $225,000: $8,322.50 + 5.25% of the excess over $175,000
- $225,000 – $300,000: $10,947.50 + 5.50% of the excess over $225,000
- $300,000 or greater: $15,072.50 + 5.75% of the excess over $300,000

Additional Maryland SIT Details:

Valid Filing Statuses:
- S = Single
- M = Married
- D = Employed in Delaware or other nonreciprocal state
- N = Nonresident single
- NM = Nonresident married
Exemptions:
- Services or individuals not subject to withholding under the Internal Revenue Code.
- Certain interstate carrier employees.
- Low-income singles and students.
- Low-wage employees.
- Persons who owed and expect to owe no Maryland taxes.
- Nonresidents from reciprocating states (D.C., PA, VA, and WV).
- Spouses of nonresident military servicepersons.
- Providers of emergency services in an area covered under a state of emergency, if requirements are met.
Required Forms:
- Federal Form W-4
- Maryland Form MW507
Reconciliation Frequency:
- Annual

Maryland State Unemployment Insurance (SUI)

Maryland’s State Unemployment Insurance (SUI) program provides essential unemployment benefits to workers who find themselves unemployed through no fault of their own, provided they meet the specific eligibility requirements set forth by state law. This program is designed to offer temporary financial assistance to those who have lost their jobs, helping them bridge the gap until they secure new employment.

Maryland SUI Tax Specifics:

The taxable wage base for Maryland SUI is set at $8,500. This means that employers are required to pay SUI taxes on the first $8,500 of each employee’s wages. Importantly, employees in Maryland are not subject to SUI tax deductions; the responsibility for these taxes falls solely on the employer.

Experienced employers in Maryland face SUI tax rates that range from 0.30% to 7.50%. These rates are determined by the employer’s history of unemployment claims, with those having fewer claims generally paying lower rates. New employers, on the other hand, are assigned a fixed rate of 2.60%.

The effective period for Maryland SUI taxes aligns with the calendar year. Furthermore, Maryland does not allow for voluntary contributions to the SUI fund.

Maryland State Disability Insurance (SDI)

State Disability Insurance (SDI) programs are designed to provide financial support to employees who are unable to work due to non-work-related illnesses or injuries. Typically, these programs are funded through mandatory payroll deductions collected from employees’ paychecks. However, Maryland does not mandate employers to collect an SDI tax. Consequently, there is no state-required SDI deduction from employee wages in Maryland.

Maryland State Unemployment Insurance (SUI)
Purpose	Provides unemployment benefits to eligible workers who are unemployed through no fault of their own and meet the state’s eligibility requirements.
Taxable Wage Base	$8,500
Employee Subject to Tax	No
Rates for Experienced Employers	0.30% – 7.50%
Rates for New Employers	2.60%
Effective Period	Calendar Year
Voluntary Contributions Allowed	No
Maryland State Disability Insurance (SDI)
Employee Payroll Deduction	Not required in Maryland
Employer Requirement	No SDI tax collection required

Maryland Paid Sick Leave (PSL) Tax
Employer Requirement	Maryland does not require employers to collect PSL taxes, but employers must provide leave to eligible employees.
Covered Employers	Employers with 15 or more employees must provide paid sick and safe leave. Those with fewer employees must provide unpaid leave.
Covered Employees	Employees working at least 12 hours per week (with limited exceptions).
Accrual Method	One hour for every 30 hours worked.
Annual Accrual Maximum	40 hours per 12-month period, based on the employee's anniversary.
Carryover Maximum	40 hours.
Frontloading Allowed	Yes, 40 hours at the beginning of each year.
FAQs	Safe and Sick Leave FAQs
Maryland Paid Family and Medical Leave (PFML) Tax
Program Start	Maryland will begin collecting contributions on July 1, 2025. Benefits will become available on July 1, 2026.
Covered Employers	All employers who pay a salary or wage to at least one person working in Maryland, except for federal government employers.
Covered Employees	Employees who have worked at least 680 hours in the 12 months prior to the start of leave.
Tax Rate	No greater than 1.2% of the employee’s wages, split evenly between employers and employees.
Maximum Leave Available	12 weeks annually. Up to 24 weeks annually if leave is for pregnancy or after childbirth.
Wage Replacement	90% of wages, up to a maximum of $1,000 per week.
FAQs	PFML FAQs for Employers

Maryland Paid Sick Leave (PSL) Regulations

Maryland has established regulations regarding paid sick leave, although it does not impose a specific PSL tax on employers. Instead, the state mandates that certain employers provide paid sick and safe leave to their employees.

Maryland PSL Details:

Covered Employers: Any employer with 15 or more employees is required to provide paid sick and safe leave. Employers with fewer than 15 employees must still provide unpaid sick and safe leave.
Covered Employees: Any employee who works at least 12 hours or more per week is covered under these regulations, with limited exceptions.
Accrual Method: Employees accrue paid sick leave at a rate of one hour for every 30 hours worked.
Annual Accrual Maximum: Employees can accrue a maximum of 40 hours of paid sick leave per 12-month period, based on their employment anniversary.
Carryover Maximum: Employees may carry over a maximum of 40 hours of accrued but unused sick leave.
Frontloading: Employers are permitted to frontload paid sick leave, providing employees with 40 hours at the beginning of each year.
Additional Resources: For more detailed information, refer to the Maryland Safe and Sick Leave FAQs.

Maryland Paid Family and Medical Leave (PFML) Program

Maryland is implementing a new Paid Family and Medical Leave (PFML) program, with contributions beginning on July 1, 2025, and benefits becoming available on July 1, 2026. This program will provide eligible employees with paid leave for qualifying family and medical reasons.

Maryland PFML Details:

Covered Employers: All employers who pay a salary or wage to at least one person working in Maryland are covered, with the exception of federal government employers.
Covered Employees: Employees who have worked at least 680 hours over the 12 months prior to the start of the leave are eligible for PFML benefits.
Tax Rate: The contribution rate will be no greater than 1.2% of the employee’s wages, and this cost will be split evenly between employers and employees, unless the employer chooses to pay the entire amount.
Maximum Leave Available:
- Employees can take up to 12 weeks of leave annually.
- Employees can take up to 24 weeks of leave annually if the leave is for pregnancy or after childbirth.
Wage Replacement: Employees will receive 90% of their wages, up to a maximum of $1,000 per week.
Additional Resources: For more detailed information, refer to the PFML FAQs for Employers.

Maryland Local Taxes

In addition to the state income tax, residents of Maryland are also subject to local income taxes. Twenty-three counties within Maryland, as well as the city of Baltimore, impose a local income tax. This local tax ranges from 2.25% to 3.20% of taxable income, adding to the overall tax burden for Maryland residents.

Miscellaneous Maryland Tax Information

Maryland Reciprocal Agreements:
- Maryland has reciprocal agreements with Pennsylvania, Virginia, Washington D.C., and West Virginia. These agreements mean that individuals who live in one of these states and work in Maryland (or vice versa) are only required to pay income tax to their state of residence.
- Nonresidents who commute to Maryland daily for work are exempt from Maryland State Income Tax (SIT) withholding, but they must file Form MW507 to certify their non-residency.
- Nonresidents who commute to Maryland less frequently may be eligible for a partial exemption from Maryland SIT.
Maryland Minimum Wage Rates:
- The Maryland state minimum wage is $15.00 per hour, which is higher than the federal minimum wage of $7.25 per hour.
- The Maryland tipped minimum wage is $3.63 per hour, with an actual tip credit of $11.37.
- However, some local jurisdictions have established higher minimum wage rates:
  - Howard County: $16.00 per hour.
  - Montgomery County:
    - $15.00 per hour for employers with 10 or fewer employees.
    - $15.50 per hour for employers with 11-50 employees.
    - $17.15 per hour for employers with 51 or more employees.
  - Montgomery County tipped minimum wage is $4.00 per hour.
  - Montgomery County tip credit varies by the number of employees.

Paying Payroll Taxes in Maryland

Maryland Employer Registration:

Employers in Maryland must register with the state for payroll tax purposes.
For withholding tax-related matters, contact the Comptroller of Maryland at (800) 638-2937.
For unemployment tax-related matters, contact the Division of Unemployment Insurance at (410) 767-2414.
Online registration is available through the Combined Registration Application and the Employer Registration Portal.
Employers can also register using Form CRA.
Account numbers for each tax type are issued separately.
Employers can use the bFile Login Page for Comptroller related services, and the BEACON login page for unemployment services.

Maryland Local Taxes
Local Income Tax	23 counties and the City of Baltimore impose local income taxes ranging from 2.25% to 3.20%.
Maryland Reciprocal Agreements
States with Agreements	Maryland has reciprocal tax agreements with: Pennsylvania Virginia Washington, D.C. West Virginia
Nonresident Withholding	Daily commuters to Maryland from reciprocal states do not need Maryland SIT withheld. They must submit Form MW507 to claim non-residency. Nonresidents commuting less frequently may be eligible for partial exemption.
Maryland Minimum Wage Rates
Wage Type	Maryland Rates	Federal Rates
Minimum Wage	$15.00	$7.25
Tipped Minimum Wage	$3.63	$2.13
Actual Tip Credit	$11.37	$5.12
City-Specific Minimum Wage Rates
Wage Type	Howard County	Montgomery County
Minimum Wage	$16.00	$15.00 (10 or fewer employees) $15.50 (11-50 employees) $17.15 (51+ employees)
Tipped Minimum Wage	$3.63	$4.00
Actual Tip Credit	$12.37	$11.00 (10 or fewer employees) $11.50 (11-50 employees) $13.15 (51+ employees)
Paying Payroll Taxes in Maryland
Agency	Comptroller of Maryland	Division of Unemployment Insurance
Phone	(800) 638-2937	(410) 767-2414
Online Registration	Combined Registration Application	Employer Registration Portal
Employer Self-Service Login	bFile Login Page	BEACON Login Page

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