How the Maryland Paycheck Calculator Works

This calculator breaks down your Maryland paycheck by accounting for federal income tax, Maryland state income tax (progressive rates from 2% to 5.75%), county income tax (2.25% to 3.2% depending on county), and FICA taxes. Maryland is unique because every county levies its own local income tax on top of state tax.

The calculation follows this formula:

Here’s what happens. Your gross pay gets reduced first by pre-tax deductions (401(k), health insurance, HSA). Federal income tax applies using 2025 IRS brackets. Maryland state tax applies using progressive brackets from 2% to 5.75%. County tax applies based on where you work (Montgomery, Baltimore County, Howard, and Prince George’s have the highest at 3.2%). Social Security takes 6.2% up to $176,100. Medicare takes 1.45% plus 0.9% additional on high earners. What’s left is your net pay.

Understanding Maryland State and County Taxes

MD Progressive State Tax

Maryland uses progressive tax brackets. Single filers pay 2% on the first $1,000, scaling up to 4.75% on income from $100,001 to $125,000, then 5% on income from $125,001 to $150,000, and topping out at 5.75% on income over $250,000. Most middle-income earners pay an effective state rate of 4-5%.

Unlike flat-tax states, Maryland’s progressive system means higher earners pay higher percentages. A $60,000 earner pays roughly 4.5% effective state tax. A $150,000 earner pays closer to 5.2%.

County Income Tax Explained

Maryland is one of the few states where every county levies its own income tax. Rates range from 2.25% (lowest) to 3.2% (highest). Montgomery County, Baltimore County, Howard County, and Prince George’s County charge the maximum 3.2%. Anne Arundel charges 2.81%. Baltimore City charges 3.05%.

You pay county tax based on where you work, not where you live (with some exceptions). If you live in Anne Arundel but work in Montgomery, you pay Montgomery’s 3.2% rate. This adds 2-3% to your total tax burden on top of state and federal taxes.

Combined MD Tax Burden

Maryland state plus county tax typically totals 7-9% of income. A $100,000 earner in Montgomery County pays roughly 4.8% state tax plus 3.2% county tax, for 8% combined Maryland tax. Add federal and FICA, and total tax burden hits 30-35%.

Real Maryland Paycheck Examples

Annual Salary	County	Gross Biweekly	Total Tax	Net Biweekly
$60,000	Montgomery (3.2%)	$2,307.69	$640.00	$1,667.69
$60,000	Anne Arundel (2.81%)	$2,307.69	$620.00	$1,687.69
$100,000	Montgomery (3.2%)	$3,846.15	$1,255.00	$2,591.15
$100,000	Baltimore City (3.05%)	$3,846.15	$1,240.00	$2,606.15
$150,000	Howard (3.2%)	$5,769.23	$2,130.00	$3,639.23

Note: Examples assume single filing status, 1 federal allowance, no pre-tax deductions. Actual amounts vary.

Maryland vs. Other States Comparison

State/Location	State + Local Tax	$100k Net Pay	vs. MD
MD (Montgomery)	~8%	$70,000	Baseline
Virginia	~5.75%	$72,000	+$2,000
DC	~8.5%	$69,000	-$1,000
Pennsylvania	~4%	$72,000	+$2,000
Texas	0%	$76,000	+$6,000

Maryland’s combined state and county taxes put it in the higher-tax category. Virginia and Pennsylvania offer lower tax burdens nearby. Texas and Florida save you 6-8% annually, but you lose proximity to DC and federal jobs.

Edge Cases and Common Questions

What If I Live in Maryland But Work in DC?

You pay DC income tax (up to 10.75%) on income earned in DC. Maryland gives you a credit for taxes paid to DC so you don’t get double-taxed. You still might owe some Maryland tax if DC’s rate is lower than MD’s combined rate. Most people end up paying DC tax since it’s higher.

What If I Live in Virginia But Work in Maryland?

Maryland withholds state and county tax from your paycheck. Virginia then gives you a credit for taxes paid to Maryland. You typically pay whichever state has the higher rate. Since MD rates (7-9%) usually exceed VA rates (5.75%), you pay Maryland and get credit from Virginia.

What If I Move Between Maryland Counties Mid-Year?

You pay county tax based on where you work on January 1st of that year (for the whole year). If you change jobs mid-year, the new county’s rate applies from that point forward. Update your MW-507 form with your new employer to ensure correct county withholding.

What About Baltimore City vs. Baltimore County?

They’re separate jurisdictions with different tax rates. Baltimore City charges 3.05% county tax. Baltimore County charges 3.2%. Make sure you select the correct one on the calculator and on your MW-507 form.

What If Maryland Raises Tax Rates?

Maryland occasionally adjusts state or county rates, especially during budget shortfalls. If your county raises its rate from 3.2% to 3.5%, you lose an extra 0.3% of gross income. On a $100,000 salary, that’s $300 annually or about $12 per biweekly paycheck. Watch for local budget announcements.

What If I’m Self-Employed in Maryland?

Self-employed individuals pay both halves of FICA (15.3%) plus Maryland state tax (up to 5.75%) plus county tax (2.25-3.2%). You make quarterly estimated tax payments. Total tax burden can hit 35-40% for self-employed individuals in high-rate counties.

What If I Retire in Maryland?

Maryland taxes most retirement income. 401(k) withdrawals, IRA distributions, and pensions are taxed at state rates, though there are some exemptions for older retirees and military pensions. Social Security is exempt from Maryland state tax. This makes Maryland moderately retirement-friendly compared to states that tax all retirement income.

Understanding Gross vs. Net in Maryland

The 30-35% Rule

Expect to lose roughly 30-35% of gross pay to all taxes in Maryland (federal, state, county, FICA). A $90,000 salary nets around $60,000-63,000 after taxes. That’s $5,000-5,250 per month take-home. Always budget with net pay, not gross.

Pre-Tax Benefits Save More in Maryland

Maryland’s combined state and county tax makes pre-tax deductions extra valuable. If you’re in the 22% federal bracket, 4.8% MD state bracket, and 3.2% county bracket, every $1,000 contributed to a 401(k) saves you $220 federal + $48 state + $32 county + $76.50 FICA = $376.50 in taxes. That’s a 37.65% immediate return.

Should You Work in Maryland?

When It Makes Sense

Maryland offers proximity to Washington DC and federal jobs. Many federal employees, contractors, and military personnel live in Maryland for access to DC, Pentagon, NSA, NIH, and other agencies. The 7-9% state and county tax is worth paying for career opportunities in biotech, cybersecurity, and government contracting.

Maryland also has excellent public schools in Montgomery, Howard, and Anne Arundel counties, making it attractive for families despite higher taxes.

When It Doesn’t Make Sense

Don’t move to Maryland for a marginal salary increase without accounting for taxes and cost of living. A $110,000 offer in Maryland nets roughly the same as $100,000 in Virginia or $95,000 in Pennsylvania after taxes. Housing costs in Montgomery and Howard counties are also very high.

Frequently Asked Questions

Does Maryland Tax Retirement Income?

Partially. Maryland exempts Social Security from state tax. Other retirement income (401(k), IRA, pensions) is taxed but may qualify for exemptions if you’re over 65 or meet other criteria. Military pensions get special exemptions. Check with a tax professional for your specific situation.

What’s the Difference Between State and County Tax?

Maryland state tax (2-5.75%) goes to the state. County tax (2.25-3.2%) goes to your local county. They’re separate taxes, both withheld from your paycheck. Combined, they add 7-9% to your tax burden.

Which Maryland County Has the Lowest Tax?

Worcester and Somerset counties have the lowest at 2.25%. Most rural counties charge 2.25-2.8%. Montgomery, Baltimore County, Howard, and Prince George’s charge the maximum 3.2%.

How Accurate Is This Calculator?

Very accurate for standard W-2 employees using 2025 tax tables. Where it might differ: specific county rate variations, unusual deductions, or employer-specific withholding. Small differences (under $50 per paycheck) are normal. For precise numbers, check your actual paystub.

Do I Pay Tax to My Residence County or Work County?

Usually your work county. If you live in Frederick but work in Montgomery, you pay Montgomery’s 3.2% rate. There are exceptions if you live and work in different states. Check Maryland’s tax guidance or consult a tax professional.

What’s the MW-507 Form?

Maryland’s Employee Withholding Exemption Certificate. It’s similar to the federal W-4 but for Maryland state and county tax withholding. You give it to your employer to indicate filing status and any exemptions. Make sure your county is correct on this form.

Maximizing Your Maryland Take-Home Pay

Max All Pre-Tax Accounts

Contribute to 401(k) ($23,500 in 2025), HSA ($4,300 single, $8,550 family), and FSA ($3,300). In Maryland’s combined 8% state and county rate, these save 30-38% in total taxes. On a $100,000 salary, maxing a 401(k) saves roughly $8,800 in taxes.

Consider Living in Lower-Tax County

If your job allows flexibility in work location, consider counties with lower rates. Anne Arundel (2.81%) versus Montgomery (3.2%) saves 0.39% annually. On a $100,000 salary, that’s $390 saved per year. Small but meaningful over time.

Verify MW-507 County Selection

Many employees accidentally have the wrong county on their MW-507 form, leading to over or under-withholding. Verify your work county is correct with your employer. Fixing this prevents surprise tax bills or lost refund money.

Related Tools

Need to calculate other aspects of your Maryland income? Check out these related calculators:

• Maryland Salary Calculator (annual salary breakdown)
• Hourly to Salary Calculator (convert hourly wage to annual income)
• Cost of Living Calculator (compare Baltimore, Rockville, Annapolis, Columbia)
• Bonus Tax Calculator (see how bonuses get taxed)
• County Tax Comparison Tool (compare MD counties)