Maryland payroll taxes

Maryland state income tax: Progressive brackets. Employers withhold using your MW507 and the latest Maryland tables.
Local (county) income tax: Every county (and Baltimore City) sets its own percentage of Maryland taxable income; employers withhold based on residence/locality.
FICA (federal): Social Security and Medicare—see the FICA section below.
Federal income tax (FIT): Withheld using IRS rules from your federal Form W-4.
State Unemployment Insurance (SUI): Employer-paid only; employees do not pay Maryland UI from wages.
Pre-tax deductions: 401(k), HSA/FSA, and Section 125 premiums may reduce taxable wages (FIT/state and sometimes FICA).
Post-tax deductions: Roth 401(k), garnishments, union dues, and other after-tax items reduce net pay.

How Your Maryland Paycheck Works

Start with gross pay (salary for the period or hourly rate × hours; include overtime when due).
Subtract pre-tax items (traditional 401(k), HSA/FSA, cafeteria plans) to determine taxable wages.
Compute FICA (Social Security to the annual wage base; Medicare on all wages; Additional Medicare for high earners).
Calculate federal withholding using IRS methods and your W-4.
Calculate Maryland state withholding using MW507 and current state tables.
Apply the correct local county rate (residence or work locality rules as applicable).
Employer separately pays Maryland SUI—this does not reduce your net pay.
Subtract any post-tax deductions to reach net pay.

Maryland unemployment insurance (SUI) — 10-year snapshot

Employees do not pay Maryland UI from wages. Employers contribute on a taxable wage base at experience or new-employer rates; confirm exact figures on your annual rate notice.

Year	Employee UI Rate	Employee Pays?	Employer Taxable Wage Base (approx.)	New Employer Rate (typ.)	Experienced Rate Range (approx.)
2016	0%	No	$8,500	~2.6%	~0.3%–7.5%
2017	0%	No	$8,500	~2.6%	~0.3%–7.5%
2018	0%	No	$8,500	~2.6%	~0.3%–7.5%
2019	0%	No	$8,500	~2.6%	~0.3%–7.5%
2020	0%	No	$8,500	~2.6%	~0.3%–7.5%
2021	0%	No	$8,500	~2.6%	~0.3%–7.5%
2022	0%	No	$8,500	~2.6%	~0.3%–7.5%
2023	0%	No	$8,500	~2.6%	~0.3%–7.5%
2024	0%	No	$8,500	~2.6%	~0.3%–8.0%
2025	0%	No	$8,500	~2.6%	~0.3%–8.2%

Maryland salary threshold

Maryland generally follows federal FLSA white-collar rules. Exempt status requires meeting the current federal salary threshold and applicable duties tests. If either is not met, overtime is due after 40 hours in a workweek. Some Maryland localities set higher minimum wages, but exemption tests remain tied to federal standards.

Median Household Income — Maryland (10 years, current dollars)

Illustrative nominal values showing trend; consult the latest ACS release for official statistics.

Year	Median Household Income
2015	$76,200
2016	$78,600
2017	$80,900
2018	$83,200
2019	$86,700
2020	$86,100
2021	$90,300
2022	$95,400
2023	$99,200
2024	$101,300

Maryland Federal Insurance Contributions Act (FICA)

Social Security: 6.2% employee + 6.2% employer, up to the federal wage base.
Medicare: 1.45% employee + 1.45% employer on all wages.
Additional Medicare: 0.9% employee-only on wages above $200,000 (employer remains 1.45%).

Number of cities that have local income taxes

Maryland administers local income taxes at the county level (plus Baltimore City). Rates are a percentage of Maryland taxable income and vary by locality, typically around the low-to-mid 3% range. Employers withhold the correct county rate based on the employee’s residence/locality on file; verify annually to ensure accurate withholding.

Local income tax table (selected examples)

County/Locality	Approx. Local Tax Rate	Notes
Baltimore City	~3.2%	Treated as a county for local tax; employer withholds
Montgomery County	~3.2%	One of the higher Maryland county rates
Prince George’s County	~3.2%	Verify current year’s rate
Anne Arundel County	~2.8%–3.2%	Varies by year; check MD tables
Howard County	~3.2%	Employer withholds by residence/locality
Frederick County	~2.9%–3.0%	Confirm current schedule
Statewide (others)	~2.25%–3.2%	Range across remaining counties; verify annually

Maryland Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Most non-exempt employees earn 1.5× after 40 hours/week (FLSA standard).
Minimum wage: Maryland sets a statewide minimum wage by statute (some counties/cities adopt higher local rates); check the rate effective for your pay period.
Pay frequency: Regular, established paydays required (weekly/biweekly/semimonthly common) with timely final pay at separation as required by law.
Meals/rests: Follow federal and state rules; minors and certain sectors may have additional protections.

Additional Maryland forms

MW507 — Employee Maryland Withholding Exemption Certificate.
Withholding returns — Employer deposit schedule (monthly/quarterly) and annual reconciliation with W-2 filing.
UI Employer Registration & Rate Notice — Maryland Department of Labor account setup and rate assignment.
New Hire Reporting — Report hires/rehires within the required timeframe.
Required workplace posters — Minimum wage, wage payment, unemployment, and federal postings.

FAQs — Maryland Salary Paycheck Calculator

How do I use a Maryland Salary Paycheck Calculator to estimate net pay?

Enter gross pay and pay frequency, your W-4 and MW507 elections, and pre-/post-tax deductions. The calculator applies FICA, federal withholding, Maryland state tax, and your county’s local rate to estimate per-paycheck and annual take-home. Employer UI is not deducted from wages.

Why is there a county tax on my Maryland pay stub?

Maryland collects local income taxes at the county level (plus Baltimore City). Employers must withhold your county’s rate based on your residence/locality. Rates vary each year—verify your address and rate.

Do Maryland employees pay unemployment tax from wages?

No. Maryland Unemployment Insurance is funded by employer contributions only. You will not see a state UI deduction on your pay stub.

What salary makes me exempt from overtime in Maryland?

Maryland generally follows federal FLSA rules. Exempt status requires meeting the current federal salary threshold and the applicable duties tests. Otherwise, overtime is due after 40 hours in a workweek.

How are bonuses and commissions taxed on a Maryland paycheck?

They’re subject to federal withholding (IRS supplemental methods), FICA, Maryland state withholding, and your local county tax. Employer SUI remains an employer expense and does not reduce your net pay.

Which form changes my Maryland state withholding?

Use MW507 to set or update Maryland withholding elections—especially after life events or when you have multiple jobs. Ensure HR has your correct county/locality for accurate local withholding.

Why is my coworker’s take-home different even at the same salary?

Differences in W-4/MW507 elections, county rates, pre-tax benefits, Roth vs. traditional contributions, supplemental wage methods, and garnishments can materially change taxable wages and withholding.

How often must I be paid in Maryland?

Employers must maintain regular, posted paydays and pay on time. Weekly, biweekly, and semimonthly schedules are common; final-pay timing depends on separation circumstances and law.

Does the calculator handle HSA/FSA and 401(k) pre-tax deductions?

Yes. Enter those amounts; they reduce taxable wages for FIT/state and sometimes FICA, generally increasing take-home versus taking the same deductions after tax.

How do I pick the correct local rate if I moved counties mid-year?

Update your address with HR and on MW507. Payroll should begin withholding at the correct county rate going forward; your tax return will reconcile any differences for partial-year residency.

Maryland Salary Paycheck Calculator