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State Abbreviation: |
MD |
State Tax Withholding State Code: |
24 |
Acceptable Exemption Form: |
MW 507 |
Basis for Withholding: |
State Exemptions |
Acceptable Exemption Data: |
S, M/Number of Allowances |
TSP Deferred: |
Yes |
Special Coding: |
Determine the Total Number of Allowances Claimed field as follows: First Position - S = Single; M = Married. Second or Third Positions - Enter the number of exemptions claimed. |
Additional Information: |
The Maryland State income tax formula contains a computation for Maryland county tax. Residents of the State of Maryland are required to pay the appropriate county tax in addition to the State income tax. Nonresidents of Maryland pay only the State income tax. Refer to the withholding formula for information on the individual county rates. |
Additional Resources: |
TAXES 13-34, Maryland State and County Income Tax Withholding |
Withholding Formula 
(Effective Pay Period 25, 2013)
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.1
1 If gross annual wages are less than $5,000, taxes will not be withheld.
- Determine the standard deduction by applying the following guideline and subtract this amount from the gross annual wages computed in step 4.
Standard Deduction2 = 15 percent x Annual Wages
2 Minimum of $1,500/Maximum of $2,000
- Determine the dependent allowance by applying the following guideline and subtract this amount from the result of step 5 to determine the taxable income.
Exemption Allowance = $3,200 x Number of Exemptions
- Apply the taxable income computed in step 6 to the following table to determine the annual Maryland tax withholding.
Maryland Nonresident Not Subject to Maryland County Tax
Married
If the Amount of
Taxable Income Is:The Amount of Maryland
Tax Withholding Should Be:Over:
But Not Over:
Of Excess Over:
$0
$150,000
$0
plus
6.00%
$0
150,000
175,000
9,000.00
plus
6.25%
150,000
175,000
225,000
10,562.50
plus
6.50%
175,000
225,000
300,000
13,812.50
plus
6.75%
225,000
300,000
and over
18,875.00
plus
7.00%
300,000
Single
If the Amount of
Taxable Income Is:The Amount of Maryland
Tax Withholding Should Be:Over:
But Not Over:
Of Excess Over:
$0
$100,000
$0
plus
6.00%
$0
100,000
125,000
6,000.00
plus
6.25%
100,000
125,000
150,000
7,562.50
plus
6.50%
125,000
150,000
250,000
9,187.50
plus
6.75%
150,000
250,000
and over
15,937.50
plus
7.00%
250,000
All Other Employees
Married
If the Amount of
Taxable Income Is:The Amount of Maryland
Tax Withholding Should Be:Over:
But Not Over:
Of Excess Over:
$0
$150,000
$0
plus
4.75%
$0
150,000
175,000
7,125
plus
5.00%
150,000
175,000
225,000
8,375
plus
5.25%
175,000
225,000
300,000
11,000
plus
5.50%
225,000
300,000
and over
15,125
plus
5.75%
300,000
Single
If the Amount of
Taxable Income Is:The Amount of Maryland
Tax Withholding Should Be:Over:
But Not Over:
Of Excess Over:
$0
$100,000
$0
plus
4.75%
$0
100,000
125,000
4,750.00
plus
5.00%
100,000
125,000
150,000
6,000.00
plus
5.25%
125,000
150,000
250,000
7,312.50
plus
5.50%
150,000
250,000
and over
12,812.50
plus
5.75%
250,000
- Divide the result of step 7 by 26 to obtain the biweekly Maryland State tax. Residents of Maryland are to proceed to step 9 to compute Maryland county tax.
- If the employee is a resident of the State of Maryland, compute the annual county tax withholding as follows:
- Repeat steps 1 through 5.
- Determine the dependent allowance by applying the following guideline and subtract this amount from the result of step 9a to determine the taxable county income.
Exemption Allowance = $3,200 x Number of Exemptions
- Apply the taxable income computed in 9b to the following guideline to determine the appropriate county income tax:
- Divide the result of step 9c by 26 to obtain the biweekly Maryland county tax.
- Add the results of steps 8 and 9d to determine the resident’s biweekly Maryland State and county tax combined withholding.
Compute the Annual Income Tax Withholding For:
By Multiplying the Annual Taxable Wage By:
Allegany
3.05%
Anne Arundel
2.56%
Baltimore
2.83%
Baltimore City
3.20%
Calvert
2.80%
Caroline2.73%
Carroll3.04%
Cecil
2.80%
Charles3.03%
Dorchester
2.62%
Fredrick
2.96%
Garrett
2.65%
Harford
3.06%
Howard
3.20%
Kent
2.85%
Montgomery
3.20%
Prince George's
3.20%
Queen Anne's
3.20%
St. Mary's
3.00%
Somerset
3.15%
Talbot
2.40%
Washington
2.80%
Wicomico
3.20%
Worcester
1.25%