Using the Maryland Paycheck Calculator
The Maryland paycheck calculator is designed to help employees in the Old Line State estimate their actual take-home pay after all mandatory deductions. Maryland is unique because it features a "piggyback" tax system where local counties and Baltimore City levy their own income taxes in addition to the state tax.
To use this calculator, simply enter your gross earnings, select your pay frequency (how often you get paid), and choose the Maryland county where you reside. The calculator will automatically apply the specific local tax rate for that jurisdiction.
- Gross Pay Per Period
- This is the amount you earn before any taxes or benefits are deducted. For example, if you have a $65,000 annual salary paid bi-weekly, your gross pay per period is $2,500.
- Maryland County
- Maryland residents pay a local income tax based on their county of residence. Rates range from 2.25% in Worcester County to 3.20% in jurisdictions like Baltimore City and Montgomery County.
- Filing Status
- Your tax brackets for both Federal and Maryland state taxes change depending on whether you file as Single or Married.
How Maryland Paycheck Taxes Work
Calculating a Maryland paycheck requires four main components: Federal Income Tax, FICA taxes, Maryland State Income Tax, and Maryland Local County Income Tax. The formula used is:
Net Pay = Gross Pay – (Fed Tax + FICA + MD State Tax + MD County Tax)
- FICA (7.65%): Includes 6.2% for Social Security and 1.45% for Medicare.
- Maryland State Tax: A graduated tax ranging from 2% to 5.75%. Most residents fall into the 4.75% bracket for taxable income between $3,001 and $100,000.
- Local Tax: This is calculated as a percentage of your taxable income. In Maryland, this is collected by the State and distributed to the counties.
Calculation Example
Example: An employee living in Baltimore County earns $2,500 bi-weekly (approx. $65,000/year) as a single filer.
Step-by-step solution:
- Gross Pay = $2,500.00
- FICA Tax (7.65%) = $191.25
- Estimated Federal Tax = $300.00 (based on 12% effective rate)
- Maryland State Tax (approx 4.75%) = $118.75
- Baltimore County Tax (3.20%) = $80.00
- Net Pay = $2,500 – (191.25 + 300 + 118.75 + 80)
- Result = $1,810.00
Common Questions
Why is my Maryland tax higher than other states?
Maryland's "piggyback" county taxes often make the total state and local tax burden higher than in states with only a flat state income tax. When you combine the top state rate (5.75%) with the top local rate (3.2%), the marginal rate can exceed 8.95%.
What if I work in Maryland but live in another state?
Maryland has reciprocal tax agreements with Virginia, West Virginia, Pennsylvania, and the District of Columbia. If you live in these areas, you generally only pay taxes to your home state, but you must file Form MW507 with your Maryland employer.
Does the calculator include health insurance premiums?
No, this specific calculator focuses on mandatory government taxes. Voluntary deductions like 401(k) contributions or health insurance are usually pre-tax and would further reduce your taxable gross pay and net take-home pay.