Maryland pay stubs: state and county tax withholding
Maryland paycheck withholding: graduated state income tax plus a county or Baltimore City local income tax, federal payroll taxes, and FAMLI timing.
Last reviewed
Rates on this page are for the 2026 tax year and are reviewed every January.
State income tax
Maryland uses graduated rates. The 2025 legislative session added new brackets at the top for high earners, so withholding for larger salaries changed. Employees give you Form MW507, Maryland's withholding exemption certificate.
Local taxes: every county has one
This is what makes Maryland different. Every county and Baltimore City charges a local income tax, and it is collected along with the state tax. Employers usually withhold one combined state-plus-local amount based on the employee's county of residence. Points to watch:
- The local rate depends on where the employee lives, so two people at the same desk can have different withholding.
- Counties set their own rates and can change them, so check the Comptroller's current withholding tables each year.
- Employees who live outside Maryland but work there have their own withholding rules. Check the Comptroller's guidance for those cases.
Other state payroll deductions
Maryland is building a paid leave program called FAMLI (Family and Medical Leave Insurance). After several delays, payroll contributions are scheduled to begin on January 1, 2027, with benefits planned for 2028. That means no FAMLI deduction in 2026. Watch the Maryland FAMLI site for updates. Maryland has no state disability insurance deduction, and state unemployment insurance is paid by employers.
Federal withholding still applies
- Federal income tax, per the employee's Form W-4
- Social Security, 6.2% of wages up to the annual Social Security wage base
- Medicare, 1.45% of all wages, plus 0.9% additional Medicare on wages over $200,000
Creating a Maryland pay stub with PayStubNest
Go to create a pay stub, enter hours and rate or a salary, and select Maryland. The calculator handles federal and state withholding and keeps year-to-date totals running across every stub. Because the county piece depends on where the employee lives, double-check that the local amount matches the employee's county. The exact figures on each stub depend on the pay amount, pay frequency, W-4 choices, deductions and year-to-date totals, and PayStubNest calculates all of it automatically. Preview for free, then pay only for the stubs you download.
Record-keeping tip
Store each employee's county of residence with their payroll record and ask them to tell you when they move. A move across a county line changes the local tax even when nothing else about the job changes. The Comptroller of Maryland publishes current withholding rules.