Updated for 2026

Maryland Salary & Paycheck Calculator 2026

Maryland has 10 state brackets running 2%–6.5% — the 2025 Budget Reconciliation Act (BRA) added two new top brackets (6.25% over $500K single / $600K MFJ and 6.5% over $1M). But the more important number for most workers is the LOCAL tax. Every Maryland county and Baltimore City imposes a separate local income tax of 2.25%–3.20% — collected with state taxes via the same return. A Maryland W-2 worker faces combined state + local rates of 5%–9.7% across the income spectrum. Maryland's small standard deduction ($2,550 single / $5,150 MFJ) makes the effective tax burden appreciably higher than headline rates suggest.

Maryland: 10 state brackets (top 6.5% at $1M, post-2025 BRA) + every county 2.25%–3.20%
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No state income tax

Showing all 50 states + DC — every jurisdiction has a dedicated paycheck page; picking another navigates there. Use the home calculator →

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Common: 100% up to 4%, or 50% up to 6%. For tiered formulas, switch to Tiered.Match dollars don't change your take-home (they go to the 401(k), not your paycheck) — but they show up below as "Total comp".

Additional Pre-Tax Deductions

Maryland levies a 2% surtax on net capital gains when federal AGI exceeds $350,000 (MD Comptroller Technical Bulletin 58, per the 2025 Budget Reconciliation Act). Primary-residence sale gain under $1.5M and retirement-account assets are exempt — leave this $0 if those are your only gains.

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Annual Take-Home

$56,268

$4,689/mo · $2,164/biweekly · effective rate 19.98%

Includes Howard County local tax of $2,400/yr

+ $3,000/yr employer 401(k) match → $78,000 total compensation

Tax Breakdown

Federal Income Tax$6,845
FICA (SS + Medicare)$5,738
Maryland State Tax$0 (no state tax)
Howard County Local Tax$2,400
401(k) Contribution$3,750
Total Deductions$18,733
Estimates only — not tax advice. · Full disclaimer →

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Maryland State Tax Facts (2026)

Tax Structure

Progressive (10 brackets) + county tax

Top Rate

6.5% state + up to 3.20% county (over $1M single / $1M MFJ)

Standard Deduction

$2,550 single / $5,150 MFJ (capped, much smaller than federal)

Other State Payroll

Every county + Baltimore City imposes 2.25%–3.20% local income tax

Notable Maryland payroll feature

Maryland's 2025 Budget Reconciliation Act added two new top brackets — 6.25% on income over $500K (single) / $600K (MFJ) and 6.5% on income over $1M. Combined with the local county income tax (2.25%–3.20%), high earners in Howard, Montgomery, or Baltimore City now face a combined marginal rate near 9.7%. Maryland's standard deduction is capped at $2,550 single / $5,150 MFJ — much smaller than federal.

How a Maryland paycheck actually works

Withholding on a Maryland paycheck flows through Form MW507, which captures both your filing status and your county of residence — the latter determines which county's local income tax (2.25%–3.20%) gets withheld alongside the state portion. Maryland is one of only three states where local income tax follows the worker home rather than to the workplace, so a Howard County resident commuting to a Washington DC job still owes Howard's 3.20% local tax (with a credit for any DC tax actually paid). Updating MW507 promptly after a county move avoids a year of misallocated withholding showing up at filing.

Take-home math at three tiers, Maryland Montgomery County single filer 2026 (3.20% local rate, post-2025 BRA): $60,000 → about $4,400 federal + $4,590 FICA + $2,640 MD state + $1,920 county = $13,550 deductions, take-home $46,450 (77%). $100,000 → $11,800 federal + $7,650 FICA + $5,000 MD state + $3,200 county = $27,650, take-home $72,350 (72%). $150,000 → $24,000 federal + $9,275 FICA + $8,250 MD state + $4,800 county = $46,325, take-home $103,675 (69%). The combined 9.7% state+local marginal rate at the top end approaches NJ-without-property-tax territory; Maryland's small $2,550 standard deduction also pulls more income into the bracket schedule than a federal-conforming state would.

Maryland's 2025 Budget Reconciliation Act added two new state brackets — 6.25% over $500K single / $600K MFJ and 6.5% over $1M — and a 2% capital-gains surtax on net cap-gains when federal AGI exceeds $350,000. Stack the surtax on top of the new top bracket and the Howard/Baltimore/Montgomery/PG 3.20% county rate, and a high-earning Maryland resident pays an effective marginal 11.7% on long-term capital gains above $1M (6.5% state + 3.2% local + 2% surtax). Primary-residence sale gain under $1.5M and retirement account distributions are exempt from the surtax. Federal-job density along the I-95/270 corridor (NSA, NIH, FDA, NIST, Hopkins) means a disproportionate share of MD W-2 workers are GS-grade federal employees with locality pay; the MD PTET election doesn't help that population, but maxing 401(k) + HSA does.

The single highest-leverage tactic for Maryland W-2 earners is exploiting the federal-conforming pre-tax retirement and HSA shelters since Maryland follows federal §401(k) and §125 cafeteria treatment. A federal employee in the 24% federal bracket living in a 3.20% county saves about $33 in MD state+local tax per $1,000 of 401(k) deferral — modest, but it stacks across $24,500 + $4,400 HSA. The bigger lever is for high earners crossing the new $500K BRA threshold: the marginal 6.25%–6.5% jump above $500K makes pre-tax deferrals materially more valuable than they were pre-2025. Self-employed and partnership-income Marylanders should also evaluate the MD PTET election as a SALT-cap workaround.

Maryland tax quirks worth knowing

  • 2025 BRA reform added two new brackets: 6.25% over $500K single / $600K MFJ and 6.5% over $1M — affects roughly the top 1% of MD filers.
  • 2% capital-gains surtax on net capital gains when federal AGI > $350,000 (same threshold for ALL filing statuses), effective tax year 2025. Stacks on top of regular MD state + local tax — so a high-earner MD resident pays an effective marginal rate ~11.7% on capital gains (6.5% state + 3.2% local + 2% surtax). Exemptions: primary-residence sale gain under $1.5M, retirement-account assets. The capital-gains input on this calculator above triggers it when state = MD.
  • 23 counties + Baltimore City each impose local income tax (LIT) — 2.25% (Worcester) up to 3.20% (Howard, Baltimore City, Montgomery, Prince George's). Most major suburbs sit at 3.20%.
  • MD standard deduction is capped at $2,550 single / $5,150 MFJ (15% of income, capped) — much smaller than federal $16,100 / $32,200.
  • MD does NOT conform to federal §199A QBI deduction at the state level — self-employed Marylanders lose that benefit. Local tax is determined by COUNTY OF RESIDENCE, not employer location.

Sources: federal brackets + standard deduction from IRS Rev. Proc. 2025-32; retirement contribution limits ($24,500 401(k), $4,400 HSA, $7,500 IRA) from IRS Notice 2025-67; FICA limits from the SSA 2026 Fact Sheet;Maryland state brackets verified against the Tax Foundation 2026 State Income Tax Rates compilation and the official Maryland Resident Tax Booklet (Comptroller of Maryland). Recent Maryland reforms referenced: MD HB 352 / 2025 Budget Reconciliation Act — added 6.25% / 6.5% brackets + 2% capital-gains surtax over $350K AGI. Always cross-check with your state DOR before relying on any number for filing.

Federal payroll tax reference

Above-the-state-line, every Maryland paycheck owes federal income tax + FICA (Social Security + Medicare). The breakdowns:

Maryland Salary & Paycheck Calculator FAQ