🏛️ MD — Updated 2026

Maryland Payroll Calculator

Calculate your take-home pay in Maryland with accurate state income tax (2-5.75%), federal withholding, and FICA deductions.

2-5.75%
State Income Tax
$15.00
Minimum Wage
6.2M
Population

💰 Free Payroll Calculator — 2026 Tax Year

Calculate your take-home pay with federal & state taxes

🏛️ Maryland Payroll Tax Overview for 2026

Maryland levies a state income tax with rates ranging from 2-5.75%. When calculating payroll in Maryland, employers must withhold both federal and state income taxes, along with FICA contributions (Social Security at 6.2% and Medicare at 1.45%).

Maryland Income Tax Brackets (2026)

Income RangeTax Rate
$0.00$1,000.002%
$1,000.00$2,000.003%
$2,000.00$3,000.004%
$3,000.00$100,000.004.75%
$100,000.00$125,000.005%
$125,000.00$150,000.005.25%
$150,000.00$250,000.005.5%
$250,000.00and above5.75%

Additional Maryland Payroll Information

  • Minimum Wage (2026): $15.00 per hour
  • State Unemployment Insurance (SUI): 0.3-7.5% (employer-paid)
  • Capital: Annapolis
  • Population: 6.2M

Note: County taxes also apply (2.25-3.2%). Complex payroll state.

📊 Maryland Take-Home Pay Examples

See how much you'd take home at different salary levels in Maryland (single filer, 2026 tax year):

Annual SalaryFederal TaxState TaxFICATake-HomeEff. Rate
$50,000.00$3,877.50$2,322.50$3,825.00$39,975.0020.05%
$75,000.00$7,960.00$3,510.00$5,737.50$57,792.5022.94%
$100,000.00$13,460.00$4,697.50$7,650.00$74,192.5025.81%

🏢 Employer Payroll Tax Cost in Maryland

Employers in Maryland must pay additional payroll taxes on top of each employee's salary. Here's the employer cost breakdown for a $75,000 salary:

Employer SS (6.2%)
$4,650.00
Employer Medicare (1.45%)
$1,087.50
FUTA (0.6%)
$42.00
Total Employer Cost
$80,779.50
+7.71% above salary

Maryland Payroll FAQ

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Disclaimer: This Maryland payroll calculator provides estimates for informational purposes only. Actual tax withholdings may vary based on local taxes, additional deductions, and individual circumstances. Maryland tax rates are based on 2026 figures from the IRS and Maryland Department of Revenue. Consult a qualified tax professional for accurate payroll advice.
Disclaimer: NOT tax advice. Mustafa Bilgic is not a CPA, EA, or tax preparer. Consult a qualified tax professional before relying on these estimates.

Maryland Payroll Tax Reference: Statutory Citations and 2026 Specifics

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 2026 Payroll-Specific Numbers

  • State Unemployment Insurance (SUI): Maryland Department of Labor administers UI under Labor and Employment Article § 8-101 et seq.. For 2026, experience-rated employer rates range 0.30% to 7.50% on the first $8,500 of wages per employee (Maryland UI taxable wage base unchanged). New employers pay 2.60%.
  • Local Income Tax ("Piggyback"): All 23 Maryland counties plus Baltimore City levy local income taxes ranging from 2.25% (Worcester County) to 3.20%/3.30% (multiple counties at the new statutory cap) in 2026. Withholding is by county of legal residence, not work location. Combined state-plus-local effective top rates can reach approximately 9.80% for Maryland's highest earners.
  • Family and Medical Leave Insurance (FAMLI): Per Time to Care Act of 2022, contributions begin July 1, 2026 at a combined 0.90% of wages (employer 0.45%, employee 0.45%) up to the SSA wage base. Employers with fewer than 15 employees are exempt from the employer share. Benefits begin January 2028.
  • Workers' Compensation: Maryland Workers' Compensation Commission administers under Labor and Employment Article § 9-101 et seq. 2026 voluntary loss-cost approximately $0.55 per $100 for clerical (Class 8810).
  • State-Specific Items: Maryland's Earned Income Credit matches 50% of the federal EITC for low-to-moderate-income workers (TG § 10-704). The Personal Exemption phases out at higher incomes. Maryland does not have a state-mandated short-term disability program separate from FAMLI.

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.

Citations & Official Sources

  1. Maryland Tax-General Article Title 10 (Income Tax) — mgaleg.maryland.gov/Laws/StatuteText article=gtg section=10-105
  2. Maryland Comptroller, 2026 Withholding Information — marylandcomptroller.gov 2026 Withholding Memo
  3. Maryland FY 2026 Tax Alert (changes from 2025 legislative session) — marylandcomptroller.gov Tax Alert 2025 Session
  4. Maryland FAMLI Division — dllr.maryland.gov/labor/famli/
  5. Maryland Department of Labor, UI Employer Tax — dllr.state.md.us/uitax/
  6. U.S. Bureau of Labor Statistics, Maryland OEWS May 2024 — bls.gov/oes/current/oes_md.htm
  7. IRS Publication 15-T (2026) — irs.gov/pub/irs-pdf/p15t.pdf