Maryland Tax Law Citations (2026)
Maryland personal income tax derives from the Tax-General Article (TG) of the Annotated Code of Maryland, Title 10 — "Income Tax." State-rate authority sits in TG § 10-105; county-level "piggyback" income taxes derive from TG § 10-103 and TG § 10-106; withholding from TG §§ 10-901 to 10-922. The Maryland Comptroller administers withholding and publishes the Withholding Tax Facts annually, with statewide and county-specific tax tables. Official portal: marylandtaxes.gov; 2026 withholding guide: marylandcomptroller.gov 2026-maryland-state-and-local-withholding-information.pdf.
2026 income tax bracket structure. Maryland uses graduated state rates from 2.0% to 6.50% — with two new high-income brackets added by the FY 2026 Budget Reconciliation Act effective tax year 2025 (filed in 2026). Single-filer brackets: 2.0% on first $1,000; 3.0% from $1,000–$2,000; 4.0% from $2,000–$3,000; 4.75% from $3,000–$100,000; 5.0% from $100,000–$125,000; 5.25% from $125,000–$150,000; 5.50% from $150,000–$250,000; 5.75% from $250,000–$500,000; 6.25% from $500,000–$1,000,000 (new); and 6.50% above $1,000,000 (new). Joint filers use roughly 1.5x to 2x thresholds.
Recent legislation (2024–2026). The most consequential change is the FY 2026 Budget Reconciliation Act (Senate Bill 357 of 2025), which created the new 6.25%/6.50% top brackets and raised the maximum local "piggyback" rate cap from 3.20% to 3.30%. The default local withholding rate (when no certificate is filed) is now 3.30% for 2026. Maryland's Family and Medical Leave Insurance (FAMLI) program, codified at Labor and Employment Article § 3-1301 et seq., has had its contribution start date repeatedly pushed; current statutory schedule places contributions starting July 1, 2026 at a combined 0.90% (split equally employer/employee for businesses with 15+ workers).
Maryland BLS Wage Data (May 2024 OEWS)
Maryland's proximity to the federal government drives high wages. Per the BLS OEWS program, Maryland's statewide median annual wage was approximately $59,860 in May 2024 — substantially above the U.S. median of $49,500. Source: bls.gov/oes/current/oes_md.htm. The Washington-Arlington-Alexandria MD-VA-WV MSA median sits near $73,200 and Bethesda-Rockville-Frederick metro near $73,800. Top occupations include registered nurses (~$87,200), software developers (~$140,400), and management analysts (~$112,800), reflecting the federal contractor and biotech corridor.
Practitioner Insight: What Sets Maryland Apart
What sets Maryland apart for payroll calculations is the two-layer state-plus-county "piggyback" income tax structure with the cap raised to 3.30% for 2026. Unlike Indiana's flat-state-plus-county model or New York's state-plus-NYC overlay, Maryland's piggyback applies in every jurisdiction at meaningful rates (minimum 2.25%, no opt-out), and the effective top combined rate of ~9.80% rivals New York City and Oregon. The 2025 legislative changes — new 6.25%/6.50% high-income state brackets plus a 3.30% local cap — make 2026 the most progressive Maryland tax year in recent memory. Employers with employees living in different Maryland counties must run county-specific withholding tables, and a Worcester County resident commuting into Montgomery County for work pays Worcester's 2.25%, not Montgomery's 3.20%. The pending FAMLI contribution starting July 1, 2026 will add another 0.45% to employee pay slips mid-year — a transition that requires payroll system reconfiguration around the half-year mark.
Editor's Note
Last reviewed by Mustafa Bilgic on 2026-05-05. Maryland state tax law verified against the Maryland Comptroller (marylandtaxes.gov), the 2026 Maryland State and Local Withholding Information memo (marylandcomptroller.gov), Maryland FAMLI Division (dllr.maryland.gov/labor/famli/), and IRS Publication 15-T (2026 edition). Mustafa Bilgic is the sole proprietor of PayrollCalculator.us, registered at Malazgirt No: 225, 02000 Adıyaman, Türkiye.