Maryland Paycheck Calculator

Maryland Paycheck Calculator

Maryland Paycheck Quick Facts

• Maryland income tax rate: 2.00% - 5.75%
• Median household income: $98,678 (U.S. Census Bureau)
• Number of cities with local income taxes: 1, plus every Maryland county

How Your Maryland Paycheck Works

If you look at your pay stubs, you’ll notice that not all of your salary goes into your bank account on payday. Some of it is withheld for FICA taxes, income taxes and other deductions and contributions. Every pay period, 6.2% of your earnings goes toward Social Security taxes and 1.45% goes toward Medicare taxes. Together, these taxes are called FICA taxes and your employer matches the amount you pay in FICA taxes. Those contributions help Social Security and Medicare stay afloat. 

You may also pay the Additional Medicare Tax on certain income. If your filing status is single, head of household of qualifying widow(er), your earnings in excess of $200,000 are subject to the 0.9% Medicare surtax, not matched by your employer. This threshold is $250,000 if you're married and file jointly and $125,000 if you're married and file separately.

Your employer also deducts money from your paycheck to cover your federal income taxes. Instead of paying your income taxes all at once in April, you pay in smaller installments throughout the year.

Just how much your employer withholds from each paycheck depends on the information you provide on your W-4 form. This is where you declare your marital status, list additional income or jobs and claim dependents. If you have too much money withheld from your paychecks, you won’t receive that money during the year, but you’ll have a lower tax bill in April or a sizable refund. If you have too little money withheld, you’ll owe the IRS come tax time.

The Form W-4 has changed in recent years, as it now no longer uses allowances. Instead, it requires you to enter annual dollar amounts for things such as income tax credits, non-wage income, total annual taxable wages and itemized and other deductions. The form also uses a five-step process where filers must indicate additional income, enter personal information and claim dependents.

FICA taxes and income taxes aren’t the only things that can be taken out of your earnings. If you pay anything for health insurance, life insurance or disability insurance premiums through your employer, you’ll see those monthly contributions taken out of your earnings. The same goes for contributions to retirement accounts or commuter benefits.

The more frequent your paychecks, the smaller they’ll be, assuming your wage or salary is constant. That makes it easier to budget your money. If you get paid monthly you’ll have to be extra careful that you don’t run out of money before the month is out.

In Maryland, your employer will withhold money for your state and local income taxes, too. Maryland has a progressive state income tax system with eight tax brackets. On top of the state income taxes, Maryland counties and the city of Baltimore charge each their own local income tax. You can pay the relevant taxes on your Maryland state income tax return, as there is no separate tax form for county or city income taxes. Local rates range from 2.25% to 3.20%. The local tax rate you’ll pay in Maryland is based on where you live, not where you work.

A financial advisor can help you understand how taxes fit into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals,, get started now.

If you’re not a resident of Maryland but you have a Maryland income source, you may or may not owe Maryland taxes. It depends on whether your state of residence has a reciprocal agreement with Maryland, and on the type of income you earn in Maryland. If your Maryland earnings are subject to income taxes, your employer will withhold that money from your paychecks, at the special nonresident rate of 2.25%.

How You Can Affect Your Maryland Paycheck

If you think you’ll owe a lot at tax time and would rather increase your paycheck withholding to avoid getting a large bill, you can request an additional dollar amount of withholding on both forms. This can be useful if you have an income source outside of your job that could leave you with a big tax bill in April.

In Maryland, supplemental wages (like bonuses and commissions) are subject to withholding and taxation at normal state income tax rates - unlike in some states, which tax supplemental wages at a lower rate.

If you are relocating to Maryland, take a look at our Maryland mortgage rates guide, where you’ll find the details necessary to make a more informed decision.

Another useful way to change the size of your paycheck is to make pre-tax contributions. This is money that comes out of your paycheck before income taxes are removed. The result is that it lowers how much of your pay is actually subject to taxes. Accounts that take pre-tax money include 401(k) and 403(b) plans. So if your employer offers one of these retirement accounts, it’s a great way to save for your future while also lowering your income taxes in the present. You can also put pre-tax money into select medical accounts like health savings accounts (HSAs) and flexible spending accounts (FSAs). Just keep in mind that you can only roll over $610 in an FSA from 2023 into 2024 and $640 from 2024 into 2025. That means if you don’t use your money by the end of the year, you risk losing it.