Maryland Payroll · Graduated State + County Tax · IRS Publication 15-T
Maryland Paycheck Calculator 2025
Estimate your Maryland take-home pay for hourly or salaried work. Maryland withholds a graduated state income tax after a flat $3,350 standard deduction and MW507 exemptions, plus a county income tax that applies to the same base, so both taxes fall together. All 24 jurisdictions are built in, including the graduated Anne Arundel and Frederick local rates. No employee unemployment tax. Uses 2025 IRS Publication 15-T rates.
Pay Details
Maryland maps Single and Married Filing Separately to its Single rate schedule, and Married Filing Jointly and Head of Household to its Joint schedule.
Check this on Form W-4 if you hold two jobs or your spouse also works. It switches to the higher federal Step 2 withholding schedule.
Pre-Tax Deductions (Optional)
Traditional elective deferral. Lowers federal, Maryland state, and county tax.
Cafeteria-plan medical premiums. Lowers federal, Maryland, county, and FICA wages.
Federal W-4 Adjustments (Optional)
Annual federal dependent credit total (e.g. $2,000 per child under 17)
Federal Step 4c additional withholding per paycheck
Maryland Withholding (Form MW507)
$3,200 each. Yourself, spouse, and dependents claimed on Form MW507.
Optional additional Maryland amount requested on Form MW507.
Maryland County Income Tax
Maryland withholds county tax at your county-of-residence rate. Rates for 2025 (Comptroller of Maryland Employer Withholding Guide). Anne Arundel and Frederick are graduated and computed automatically.
Auto-filled from the county above. Override it for a custom rate. Disabled for Anne Arundel and Frederick, which use their own graduated local schedules.
Maryland state tax is graduated (4.75% up to $100,000 single / $150,000 joint of taxable income, rising to 6.50%) applied after a flat $3,350 standard deduction and $3,200 per MW507 exemption. The county tax applies to the same reduced base. Maryland has no employee-paid unemployment tax and no state disability deduction.
Enter your pay details and click Calculate to see your take-home pay breakdown.
Want the full Maryland payroll picture, including the county tax mechanics, employer unemployment tax, Form MW507, and filing frequencies? Read the Maryland Payroll Taxes guide.
Maryland Payroll Taxes Guide →Short Answer
This Maryland paycheck calculator estimates net take-home pay after federal income tax withholding, Social Security (6.2%), Medicare (1.45%), Maryland income tax withheld on the graduated 2025 schedule after a flat $3,350 standard deduction and $3,200 per MW507 exemption, and your county income tax applied to that same reduced base. For a single filer earning $65,000 per year paid biweekly, claiming one MW507 exemption and living in Montgomery County (3.20%), gross pay is $2,500.00 per period, the Maryland state line is $106.78, the Montgomery County line is $71.94, and net take-home is approximately $1,902.57. Because the county tax shares the state's base, a traditional 401(k) deferral lowers both Maryland lines at once. Maryland has no employee unemployment contribution, but every one of the 24 jurisdictions levies a local income tax.
Key Takeaways
- Maryland withholds a graduated state income tax for 2025. The withholding schedule starts at 4.75% and rises through 5.00%, 5.25%, 5.50%, and 5.75% to two new brackets of 6.25% and 6.50% added by House Bill 352.
- Withholding uses a flat $3,350 standard deduction for every employee, plus $3,200 per MW507 exemption. HB 352 replaced the old sliding 15%-of-income standard deduction with this flat amount.
- Every one of the 24 jurisdictions levies its own income tax, withheld on the same wages as the state tax. For 2025 most fall between 2.25% (Worcester) and 3.30% (Dorchester); Montgomery, Baltimore City, and many others are 3.20%.
- Anne Arundel and Frederick are graduated local taxes and are the only two that are not flat. This calculator applies their schedules automatically when you select them.
- A traditional 401(k) deferral cuts BOTH the state and county tax, because Maryland starts from federal income and the county rides on the same base. A $7,800 deferral in a 3.20% county saves about $620 a year across both lines.
- Maryland has no employee-paid unemployment tax and no state disability deduction. Unemployment insurance is funded entirely by employers through the Division of Unemployment Insurance.
- A nonresident who works in Maryland pays no county tax but a special 2.25% nonresident rate in its place. Maryland has reciprocity with Virginia, DC, Pennsylvania, and West Virginia.
2025 Maryland Paycheck Tax Quick Reference
| Tax | Rate | Wage Base / Threshold | Notes |
|---|---|---|---|
| Federal Income Tax | 10%–37% | No cap | Graduated brackets. Based on W-4 filing status and Publication 15-T percentage method tables. |
| Social Security (OASDI) | 6.2% employee | $176,100 (2025) | Withholding stops at wage base. Employer matches 6.2%. |
| Medicare (HI) | 1.45% employee | No limit | Employer matches 1.45%. |
| Additional Medicare Tax | 0.9% | $200,000 single/HOH; $250,000 MFJ; $125,000 MFS | Employee only. Employer withholds once individual wages exceed $200,000. |
| Maryland Income Tax | 4.75% to 6.50% (2025) | No cap | Graduated withholding schedule. Applied after the $3,350 standard deduction and MW507 exemptions. |
| Maryland County Tax | 2.25% to 3.30% | No cap | All 24 jurisdictions. Same base as state tax. Residence-based. Anne Arundel and Frederick graduated. |
| MD Standard Deduction (withholding) | $3,350 flat | Reduces taxable wages | HB 352. Same amount for single and married. |
| MW507 Exemption | $3,200 each | Reduces taxable wages | Yourself, spouse, dependents claimed on Form MW507. |
| Nonresident Rate | 2.25% special | In place of county | Works in MD, lives elsewhere (nonreciprocal). Added to the state rate. |
| MD Unemployment (employee) | None | — | Maryland UI is employer-funded only. No employee deduction. |
How This Calculator Works
Hourly Mode: Gross Pay Per Period
Gross pay per period equals the hourly rate multiplied by hours worked per week, then scaled to the pay period. For biweekly pay: hourly rate × hours per week × 2. For weekly: hourly rate × hours per week. For semi-monthly and monthly: hourly rate × hours per week × (52 ÷ periods per year).
Salary Mode: Gross Pay Per Period
Gross pay per period equals annual salary divided by the number of pay periods per year. Weekly: ÷ 52. Biweekly: ÷ 26. Semi-monthly: ÷ 24. Monthly: ÷ 12.
Which Wages Maryland Taxes
Maryland income tax begins with your federal adjusted gross income, so the wages Maryland withholds on are the same wages that are subject to federal income tax withholding. The key structural point is that the county tax uses that same reduced base, so both Maryland taxes move together:
- Federal taxable wages = gross − Section 125 medical − 401(k) elective deferral.
- Maryland state AND county base = the same federal base, then reduced by the flat $3,350 standard deduction and the MW507 exemptions ($3,200 each). Both the graduated state schedule and your county rate apply to this one number.
- FICA wages (Social Security, Medicare) = gross − Section 125 medical. The 401(k) deferral does not reduce FICA.
Because Maryland starts from federal income and the county tax shares the state base, a traditional deferral lowers the federal line, the state line, and the county line, which is why the calculator shows a combined Maryland saving whenever you enter a 401(k) amount.
Social Security Tax
Social Security is 6.2% of annualized FICA wages up to the $176,100 wage base for 2025. The per-period amount is the annualized Social Security tax divided by pay periods. This calculator does not track year-to-date cumulative wages, so for workers approaching the wage base, actual withholding will stop mid-year once the limit is reached.
Medicare Tax
Standard Medicare is 1.45% on all FICA wages. The calculator adds the 0.9% Additional Medicare Tax on annualized FICA wages above $200,000, matching the employer withholding rule in IRS Topic 560: withholding starts once wages exceed $200,000 in a calendar year regardless of filing status. Final liability on Form 8959 uses filing-status thresholds ($200,000 single/HOH, $250,000 MFJ, $125,000 MFS).
Federal Income Tax Withholding
The calculator follows IRS Publication 15-T Worksheet 1A (Percentage Method for Automated Payroll Systems) for 2025:
- Annualize the per-period gross pay (multiply by pay periods per year).
- Subtract annualized Section 125 medical premiums and 401(k) elective deferrals to get federal taxable wages.
- Add Step 4a other income; subtract Step 4b additional deductions.
- Subtract the line 1g allowance: $12,900 for married filing jointly or $8,600 otherwise. If the W-4 Step 2 box is checked, subtract $0 instead. The result is the Adjusted Annual Wage Amount.
- Apply the Annual Percentage Method table for the W-4 filing status - the STANDARD schedule, or the Step 2 Checkbox schedule when the Step 2 box is checked - then divide the tentative annual withholding by pay periods.
- Subtract Step 3 dependent credits divided by pay periods, then add Step 4c extra withholding.
Maryland State and County Income Tax (Percentage Method)
Maryland follows the percentage method in the Comptroller of Maryland's Employer Withholding Guide. The employer annualizes wages, subtracts the flat standard deduction and the MW507 exemptions, then applies the graduated state schedule and, on the identical remainder, the county rate:
taxable = annual wages − $3,350 − ($3,200 × exemptions)
state tax = graduated schedule(taxable)
county tax = county rate × taxable (same base)
The 2025 state withholding schedule, effective under House Bill 352, runs 4.75% up to $100,000 of taxable income (single) or $150,000 (joint), then 5.00%, 5.25%, 5.50%, 5.75%, 6.25%, and a top rate of 6.50%. This calculator annualizes, applies the schedule, and divides across your pay periods. Maryland maps Single and Married Filing Separately to its Single schedule, and Married Filing Jointly and Head of Household to its Joint schedule. If annualized gross wages are under $5,000, Maryland withholds no state or county tax.
The Maryland County Tax
Every Maryland jurisdiction levies a local income tax, set by county of residence. Because the county tax uses the same standard-deduction-and-exemption-reduced base as the state tax, there is no separate county allowance to compute. Twenty-two jurisdictions use a flat rate. Anne Arundel uses a marginal graduated schedule (2.70%, 2.94%, then 3.20% at higher income), and Frederick uses a fixed-rate-by-tier schedule (2.25% to 3.20% depending on the income band). Select your county above and the calculator fills its 2025 rate, which you can override for a custom situation; the two graduated counties are computed automatically.
No Maryland Employee Unemployment Tax
Maryland collects no employee unemployment contribution; the entire cost of Maryland unemployment insurance falls on employers through the Division of Unemployment Insurance. Maryland also has no state disability insurance deduction, and the Family and Medical Leave Insurance (FAMLI) program's payroll contributions have not yet begun. That leaves a Maryland paycheck with federal taxes, the graduated state tax, and the county income tax, plus FICA.
Maryland County Income Tax Rates (2025)
All 24 Maryland jurisdictions, from the Comptroller of Maryland Employer Withholding Guide. Withholding uses your county of residence. These rates are added to the graduated state tax on the same base. Anne Arundel and Frederick are graduated; their top rate is 3.20%.
| Jurisdiction | Rate | Jurisdiction | Rate |
|---|---|---|---|
| Allegany | 3.03% | Harford | 3.06% |
| Anne Arundel | 2.70%–3.20% (grad.) | Howard | 3.20% |
| Baltimore County | 3.20% | Kent | 3.20% |
| Baltimore City | 3.20% | Montgomery | 3.20% |
| Calvert | 3.20% | Prince George's | 3.20% |
| Caroline | 3.20% | Queen Anne's | 3.20% |
| Carroll | 3.03% | St. Mary's | 3.20% |
| Cecil | 2.74% | Somerset | 3.20% |
| Charles | 3.03% | Talbot | 2.40% |
| Dorchester | 3.30% | Washington | 2.95% |
| Frederick | 2.25%–3.20% (grad.) | Wicomico | 3.20% |
| Garrett | 2.65% | Worcester | 2.25% |
Real-World Paycheck Scenarios
Scenario 1: Salaried Single Filer in Montgomery County
Devin earns $65,000 per year in Rockville, paid biweekly, filing single with a standard federal W-4 and claiming one exemption on Form MW507. He lives in Montgomery County, so his county rate is 3.20%. He has no 401(k) deferral and no cafeteria-plan premiums. His biweekly gross is $65,000 ÷ 26 = $2,500.00.
Maryland detail: Devin's annual wages of $65,000 are reduced by the $3,350 standard deduction and one $3,200 exemption to $58,450, the shared Maryland base. The state tax falls in the 4.75% band, so it is $58,450 × 4.75% = $2,776.38 annual, divided by 26 = $106.78 per period. The Montgomery County tax is the same $58,450 × 3.20% = $1,870.40 annual, divided by 26 = $71.94. His combined Maryland rate is about 7.1% of gross. A worker in low-rate Worcester County (2.25%) would pay only about $50.60 of county tax instead, while a Dorchester resident (3.30%) would pay about $74.20, on the same salary.
Scenario 2: The 401(k) Deferral That Cuts State AND County Tax
Renee earns $85,000 per year in Silver Spring, paid biweekly, filing single with one MW507 exemption, and lives in Montgomery County (3.20%). She defers $300 per period to a traditional 401(k) ($7,800 per year). The deferral lowers her federal, Maryland state, and Maryland county wages, because the county rides on the same base as the state.
Renee's Maryland base is her $77,200 federal wages minus the $3,350 standard deduction and one $3,200 exemption, or $70,650. Her state tax of $129.07 is $70,650 × 4.75% ÷ 26, and her county tax of $86.95 is that same $70,650 × 3.20% ÷ 26. If she stopped the deferral, her Maryland base would rise by $7,800, so the deferral saves her $7,800 × 4.75% = $370.50 of state tax and $7,800 × 3.20% = $249.60 of county tax, about $620 a year combined. Her Social Security and Medicare stay on the full $85,000 because a 401(k) deferral never reduces FICA. See the Pension and Annuity Income Tax Guide for how distributions are treated at the back end.
Practitioner Insight
The Maryland item that surprises new residents is that the county tax is not a small add-on. In a 3.20% county like Montgomery or Baltimore City, the local piece is nearly as large as the state piece on a middle income, because the state schedule sits at 4.75% for most workers while the county adds another 3.20% on the identical base. A Maryland worker in a top-rate county effectively pays close to 8% state-plus-local on wages, which is more than many people expect from a state with a modest headline rate.
The second recurring item is the shared base. Because both the state and the county tax come off the same standard-deduction-and-exemption-reduced wages, a client who bumps their 401(k) sees both Maryland lines drop, not just the state line. We show savers the combined number, because in a 3.20% county the county piece of the deferral saving is almost as large as the state piece.
Third is the House Bill 352 change. Payroll systems that were not updated for 2025 can still be using the old sliding standard deduction or the old 5.75% top rate, so we check high earners' stubs against the new 6.25% and 6.50% brackets and the flat $3,350 deduction. For most workers the flat deduction is close to the old one, but for a two-earner household the difference between the withholding tables and the actual return can be a few hundred dollars.
When This Calculator Gives a Less Accurate Estimate
- Wrong county on file: The calculator uses the county rate you select. If your employer keyed a different county on your MW507, or you moved and did not update it, your actual county line will differ. The controlling county is where you live.
- Nonresident work situation: If you work in Maryland but live in another state, select the special nonresident option (2.25%) instead of a county. Residents of Virginia, Washington DC, Pennsylvania, or West Virginia can file for reciprocity and have no Maryland state tax withheld.
- Anne Arundel and Frederick: These two use graduated local schedules, applied automatically. The editable rate field is disabled for them; a custom flat rate cannot represent a graduated schedule.
- Very low earners with several exemptions: Once the $3,350 standard deduction and your MW507 exemptions exceed annual wages, both the Maryland state and county lines are zero, and annualized gross under $5,000 is exempt. The calculator floors them at zero, which is correct.
- Roth 401(k) contributions: A Roth deferral is a post-tax deduction. It reduces neither federal nor Maryland taxable wages. Do not enter it in the 401(k) field, which models traditional pre-tax deferrals only.
- Year-to-date tracking and variable hours: The calculator annualizes a single consistent pay period. Social Security stops mid-year at the wage base, overtime and seasonal hours vary, and bonuses use supplemental federal withholding rules.
Frequently Asked Questions
What is the Maryland state income tax withholding method for 2025?
Maryland withholds state income tax on a graduated percentage-method schedule. For 2025 the employer annualizes wages, subtracts a flat $3,350 standard deduction and $3,200 for each MW507 exemption, then applies the state rate schedule. Under House Bill 352 (2025), the withholding schedule starts at 4.75% and rises through 5.00%, 5.25%, 5.50%, and 5.75% to two new top brackets of 6.25% and 6.50%. The 4.75% base band runs to $100,000 of taxable income for single filers and $150,000 for joint filers. Source: Comptroller of Maryland, Employer Withholding Guide, and USDA National Finance Center bulletin NFC-25-1756838508.
Does Maryland have a county income tax?
Yes. Every Maryland jurisdiction levies a local income tax, and it is withheld on the same wages as the state tax. Your rate is set by where you live, not where you work. For 2025 most counties fall between 2.25% and 3.30%. Worcester is the lowest at 2.25% and Dorchester is the highest at 3.30%; Montgomery, Baltimore City, Baltimore County, Prince George's, Howard, and several others are 3.20%. Anne Arundel and Frederick use their own graduated local schedules. The county tax applies to wages after the same $3,350 standard deduction and $3,200 exemptions used for the state tax, so both taxes share one base. Source: Comptroller of Maryland, Employer Withholding Guide.
How much is the Maryland standard deduction and exemption for withholding?
Under House Bill 352, Maryland withholding now uses a flat standard deduction of $3,350 a year for every employee, single or married. This replaced the old sliding 15%-of-income deduction. Each exemption claimed on Form MW507 removes an additional $3,200 of annual wages. The employer prorates both amounts to your pay period and subtracts them before applying the state rate schedule and your county rate. If you do not file a Form MW507, the employer withholds as single with zero exemptions. Source: Comptroller of Maryland, Employer Withholding Guide.
Does a 401(k) contribution reduce Maryland state and county tax?
Yes, both. Maryland income tax starts from your federal adjusted gross income, and a traditional 401(k) or 403(b) elective deferral is already excluded from federal taxable wages, so it is excluded from the Maryland base too. Because the county tax rides on that same standard-deduction-and-exemption-reduced base, a deferral lowers the state tax AND the county tax. A worker in Montgomery County (3.20%) deferring $7,800 to a traditional 401(k) saves about $370 of state tax plus about $250 of county tax, roughly $620 a year across both Maryland lines. The deferral does not reduce Social Security and Medicare wages.
Do Maryland employees pay state unemployment tax?
No. Maryland unemployment insurance is funded entirely by employer contributions to the Division of Unemployment Insurance. Employees pay nothing toward Maryland unemployment, so there is no employee unemployment line on a Maryland paycheck. Maryland also has no state disability insurance or paid-family-leave payroll deduction from wages yet; the state's Family and Medical Leave Insurance (FAMLI) program contributions are scheduled to begin in a later year. Source: Maryland Department of Labor.
Which Maryland county has the highest and lowest income tax?
For 2025, Dorchester County has the highest flat local income tax at 3.30%, followed by a large group of counties at 3.20% including Montgomery, Baltimore City, Baltimore County, Prince George's, Howard, Calvert, Caroline, Kent, Queen Anne's, St. Mary's, Somerset, and Wicomico. Worcester County has the lowest at 2.25%, with Talbot next at 2.40%. Anne Arundel and Frederick use graduated local schedules that top out at 3.20%. Because the county tax is added to the graduated state tax on the same base, a resident of a 3.20% county pays a combined Maryland rate of roughly 7% to 9% depending on income. Source: Comptroller of Maryland, Employer Withholding Guide.
How do Anne Arundel and Frederick county taxes work?
Anne Arundel and Frederick are the only two Maryland jurisdictions with graduated local income taxes. Anne Arundel uses a marginal schedule: for single filers, 2.70% on the first $50,000 of Maryland taxable income, 2.94% from $50,001 to $400,000, and 3.20% above that; the joint brackets are $75,000 and $480,000. Frederick uses a fixed-rate-by-tier schedule where a single flat rate applies to the whole taxable income based on which bracket it falls in: for single filers 2.25% up to $25,000, 2.75% to $50,000, 2.96% to $150,000, and 3.20% above; the joint tiers are $25,000, $100,000, and $250,000. This calculator applies each schedule automatically when you select those counties. Source: Comptroller of Maryland, Employer Withholding Guide.
What is the special Maryland nonresident tax rate?
A person who works in Maryland but lives in another (nonreciprocal) state does not pay a county tax. Instead Maryland applies a special nonresident tax rate of 2.25% in place of the local tax, on top of the graduated state rate. Maryland has reciprocity with Virginia, Washington DC, Pennsylvania, and West Virginia, so residents of those jurisdictions who work in Maryland can file to have no Maryland state tax withheld. To model a nonresident, select the special nonresident option, which applies 2.25% in the county position. Source: Comptroller of Maryland, Employer Withholding Guide.
Does Maryland tax health insurance premiums paid through a cafeteria plan?
No. Employer-sponsored medical premiums paid through an IRC Section 125 cafeteria plan are excluded from federal taxable wages, and because Maryland income tax begins with federal adjusted gross income, they are excluded from the Maryland base as well. Section 125 medical premiums also reduce Social Security and Medicare wages. Both a traditional 401(k) deferral and a Section 125 medical premium reduce the Maryland state and county taxable base.
How does a Maryland paycheck compare to other states?
At the same gross salary, a Maryland worker takes home less than a worker in Texas or Florida, which levy no state income tax, because Maryland adds a graduated state line plus a county tax on the same base. Compared with a flat-rate state, Maryland's combined burden in a 3.20% county is higher than Pennsylvania's flat 3.07% or Indiana's flat 3.00% state-plus-county because Maryland's state schedule reaches 4.75% for most workers before the local tax is added. Compare directly with the Virginia, Pennsylvania, New Jersey, North Carolina, and Indiana calculators.
Why does my actual Maryland paycheck differ from this estimate?
This calculator estimates standard federal withholding, FICA, the graduated Maryland state withholding after the $3,350 standard deduction and MW507 exemptions, and the county tax at the rate for the jurisdiction you select. Actual paychecks also reflect post-tax deductions such as Roth 401(k) contributions and garnishments, year-to-date cumulative Social Security tracking, your exact county of residence, employer-specific payroll adjustments, mid-year MW507 changes, and any additional Maryland withholding you requested. The calculator assumes consistent pay each period and does not track cumulative wages across the year.
What To Do Next
Start by confirming three Maryland-specific lines on your most recent pay stub. First, check the state line: it should reflect the graduated schedule applied to your wages after the $3,350 standard deduction and your MW507 exemptions. Second, check the county line: it should equal your county-of-residence rate times the same base as the state tax. Third, confirm the county on file matches where you live, since that is what controls the rate.
If the county or the exemption count is wrong, the fix is a new Form MW507 submitted to your employer. If you work in Maryland but live in Virginia, DC, Pennsylvania, or West Virginia, ask about the reciprocity exemption so no Maryland state tax is withheld; a nonresident from any other state should see the special 2.25% nonresident rate in place of a county line.
For the full Maryland employer picture, including the county tax, the state unemployment wage base, and filing frequencies, read the Maryland Payroll Taxes guide. To understand how withholding connects to your year-end liability, see How Payroll Taxes Work and W-4 Withholding Explained. To decode every line on the stub itself, use How to Read a Pay Stub. If you also have self-employment income, the 1099 Tax Calculator estimates the federal side including self-employment tax.
Sources & Editorial Disclosure
- Comptroller of Maryland, Employer Withholding Guide (2025) (graduated state withholding schedule; flat $3,350 standard deduction; $3,200 exemption; all 24 county rates; Anne Arundel and Frederick graduated schedules; special 2.25% nonresident rate; filing-status-to-schedule mapping)
- USDA National Finance Center, Bulletin NFC-25-1756838508 (Maryland State and Local Income Tax Withholding) (HB 352 changes: flat $3,350 standard deduction, two new brackets, top rate 5.75% to 6.50%; full state and county withholding formula)
- Comptroller of Maryland (income tax rate schedule and local tax administration)
- Maryland Department of Labor, Division of Unemployment Insurance (employer-funded unemployment insurance; no employee contribution)
- IRS Publication 15-T (2025), Employer's Tax Guide to Federal Income Tax Withholding
- IRS Topic 751, Social Security and Medicare Withholding Rates
- IRS Topic 560, Additional Medicare Tax
- Social Security Administration, 2025 Wage Base ($176,100)
- Authored by Munib Ur Rehman · Reviewed by Nausheen Shahid, LMN Tax Inc. Not affiliated with the IRS or the State of Maryland. For informational purposes only.