Maryland income tax on a pay stub generally includes state withholding and, for Maryland residents, county or Baltimore City income-tax withholding. The amount depends on taxable wages, payroll frequency, the employee’s MW507 certificate, and the applicable locality. Maryland’s published withholding tables combine the state and local components. A single “MD tax” deduction can therefore include both; a missing separate county line does not establish that county tax was omitted.
This guide was reviewed October 8, 2026, for wages paid in 2026. It explains the current county rates, the difference between an actual local rate and a payroll-table rate, a complete fictional monthly calculation, nonresident exceptions, and a records-based correction process. It does not calculate a final Maryland return, a refund, or complete take-home pay. The Comptroller’s employer-withholding guidance describes withholding as tax collected during the year rather than a separate additional income tax.
What does Maryland withholding on a pay stub mean?
First identify what each deduction code represents. An employer may display the combined Maryland income-tax deduction, show state and county components separately, or use an abbreviation that needs a payroll explanation. Federal income tax and employee Social Security and Medicare taxes are different obligations. A county component calculated inside the Maryland deduction should not be subtracted from earnings a second time.
| Possible line | Meaning | Useful confirmation |
|---|---|---|
| MD tax / Maryland withholding | May include state and local income tax together | Ask whether the displayed amount is combined. |
| County / local withholding | A separately displayed local component | Check the locality and whether it is already included in another total. |
| Federal income tax / FICA | Separate federal deductions | Do not treat them as Maryland income-tax payments. |
| Employer payroll-tax cost | An informational cost may belong to the employer | Confirm whether it actually reduces the employee’s cash pay. |
For resident employees, the local jurisdiction is generally where the employee lives, rather than the county containing the office. Baltimore City and Baltimore County are separate jurisdictions even though both currently have a 3.20% local rate. The Comptroller’s rate and withholding-table directory explains the residence-based selection and links the current calculations.
Start with the employer’s supported Maryland wage amount, not automatically the deposit or every earnings total on the statement. The current employer guidance includes salary, commissions, bonuses, vacation pay, and other taxable compensation; specific exclusions can change the starting wages. Retirement and benefit deductions require their own tax treatment. Our gross versus taxable wages guide explains why one paycheck can have several wage bases. Our pre-tax and post-tax deductions guide provides a benefit-by-benefit review. The example below deliberately assumes no benefit exclusions or noncash wage adjustments.
What are Maryland’s county income-tax rates for 2026?
The official January–December 2026 Withholding Tax Facts lists local rates ranging from 2.25% to 3.30%. These percentages apply to taxable income, not to the amount of Maryland state tax. The publication identifies Allegany and Kent as counties with changes for 2026.
For payroll lookup, the Comptroller groups local rates into published tables. Choose the matching table or the nearest available rate above the actual rate, as instructed; do not round to a lower group. For example, Carroll’s actual 3.03% corresponds to the 3.05% table, while Harford’s 3.06% corresponds to 3.10%. This table grouping does not change the county’s actual return tax rate.
| Resident locality | Actual local rate | Table group |
|---|---|---|
| Allegany | 3.20% | 3.20% |
| Anne Arundel | Tiered* | See below* |
| Baltimore City | 3.20% | 3.20% |
| Baltimore County | 3.20% | 3.20% |
| Calvert | 3.20% | 3.20% |
| Caroline | 3.20% | 3.20% |
| Carroll | 3.03% | 3.05% |
| Cecil | 2.74% | 2.75% |
| Charles | 3.03% | 3.05% |
| Dorchester | 3.30% | 3.30% |
| Frederick | Tiered* | See below* |
| Garrett | 2.65% | 2.65% |
| Harford | 3.06% | 3.10% |
| Howard | 3.20% | 3.20% |
| Kent | 3.30% | 3.30% |
| Montgomery | 3.20% | 3.20% |
| Prince George’s | 3.20% | 3.20% |
| Queen Anne’s | 3.20% | 3.20% |
| St. Mary’s | 3.20% | 3.20% |
| Somerset | 3.20% | 3.20% |
| Talbot | 2.40% | 2.40% |
| Washington | 2.95% | 3.00% |
| Wicomico | 3.20% | 3.20% |
| Worcester | 2.25% | 2.25% |
Anne Arundel and Frederick require an income and filing-status check
Anne Arundel: the 2026 publication lists 2.70%, 2.94%, and 3.20% tiers. For single, married-separate, and dependent taxpayers, the stated taxable-net-income boundaries are $50,000 and $400,000. For joint filers, heads of household, and qualifying surviving spouses, they are $75,000 and $480,000. The corresponding published payroll groups are 2.75%, 3.00%, and 3.20%.
Frederick: the listed tiers are 2.25%, 2.75%, 2.96%, and 3.20%. The single/married-separate/dependent boundaries are $25,000, $50,000, and $150,000; the joint/head-of-household/qualifying-surviving-spouse boundaries are $25,000, $100,000, and $250,000. The corresponding payroll groups are 2.25%, 2.75%, 3.00%, and 3.20%.
These are annual taxable-net-income classifications, not monthly gross-pay cutoffs. Identify the applicable tier and current instructions before choosing a table; the highest rate is not automatically the correct ordinary-payroll choice for everyone in a tiered county. The rate-directory footnotes and 2026 Tax Facts supply the annual categories. A midyear move also needs a return-residency review rather than assuming a payroll address change resolves annual allocation.
How does Form MW507 affect Maryland paycheck taxes?
Use the 2026 Employee’s Maryland Withholding Exemption Certificate, MW507. It records the employee’s address, residence county, withholding status, exemption count, and any agreed additional withholding. A current federal W-4 is a different certificate; its settings do not replace the Maryland worksheet.
Line 1 is a count of supported withholding exemptions. Line 2 is extra dollars per pay period. The percentage schedules value each payroll exemption at $3,200 annually, allocated across the published payroll periods. One exemption therefore reduces monthly calculation wages by $266.67; it does not reduce monthly tax by $266.67. Extra dollars on line 2 are added to the withholding result, not subtracted from wages.
Complete the personal-exemption worksheet when required, including higher-income adjustments. The form calls for it above $100,000 of adjusted gross income for single or married-separate taxpayers and above $150,000 for joint or head-of-household filers, or when claiming additional exemptions. Its phaseout table and other permitted worksheet entries determine the final count. A dependent taxpayer cannot claim themself, and the worksheet’s final division requires dropping the fraction rather than rounding up.
Do not repeat the same exemptions at two jobs or claim amounts already used by a spouse. Review total household income and withholding when another job, spouse’s earnings, investment income, or a large payment changes the expected result. A married employee can select withholding at the single rate, but that certificate choice does not change the eventual return’s lawful filing status.
The Maryland withholding regulation says an employee who fails to file a required certificate is generally treated as claiming one exemption. An invalid certificate is treated as single with one personal exemption. A specific Comptroller notice can control the permitted count. When an employee becomes entitled to fewer exemptions than the certificate claims, a replacement is required within ten days of the change.
How do you calculate Maryland withholding on monthly pay in 2026?
Consider a fictional single employee residing in Montgomery County, paid $5,000 once each month in 2026. Assume every dollar is Maryland-taxable wages, no benefit or noncash adjustments, one valid MW507 exemption, and an agreed $20 extra withholding each month. There is no nonresident allocation, exempt certificate, supplemental payment, or payroll correction.
Use the 2026 percentage-method schedule for the 3.20% local group. Printed page 37 gives the monthly $283.33 standard-deduction allowance and $266.67 value of one exemption. Printed page 38, single monthly section, applies 7.95% to calculation income from $0 through $8,333. That combined rate is 4.75% state plus 3.20% local for this row.
| Calculation step | Amount |
|---|---|
| Maryland-taxable wages before schedule allowances | $5,000.00 |
| Subtract monthly standard-deduction allowance | $283.33 |
| Subtract one monthly withholding exemption | $266.67 |
| Income entering the percentage table | $4,450.00 |
| Apply the combined 7.95% row | $353.78 |
| Add the agreed extra withholding | $20.00 |
| Combined Maryland withholding for this payment | $373.78 |
The calculation is ($5,000 − $283.33 − $266.67) × 0.0795 = $353.775, rounded to $353.78; adding $20 gives $373.78. The example uses the published monthly allowances and rounds the tax to cents with half cents rounded upward. Confirm the employer’s method and rounding before treating a penny difference as an error.
What happens if the employee claims zero exemptions instead?
With the same wages, county, single monthly schedule, and $20 extra election, zero exemptions produce ($5,000 − $283.33) × 0.0795 = $374.975265. Rounded tax is $374.98, plus $20, or $394.98. The difference from the one-exemption example is $21.20. Zero exemptions increase withholding here; they do not mean “exempt from tax.”
Without the $20 election, the main example would withhold $353.78. Likewise, changing only the residence county changes the applicable local table, not the supported exemption count. For example, using Kent’s 3.30% group at the same $4,450 calculation income gives an 8.05% combined row: $358.225, rounded to $358.23, plus $20, or $378.23. These alternatives are controlled comparisons, not recommendations about which form entries to claim.
Higher income can cross into a different row. Do not multiply all wages by the first row’s rate, or use the ordinary income-tax return’s 2%, 3%, and 4% lower state brackets as payroll brackets. Maryland’s withholding schedules disregard state rates below 4.75%. Select the correct status, payroll period, local group, income row, and any fixed amount in that row. The percentage schedule and regular wage-bracket tables are alternative calculation approaches; do not deduct allowances a second time from a table result that already incorporates them.
Monthly and semimonthly are different periods. The published monthly allowances are $283.33 standard and $266.67 per exemption; semimonthly values are $141.66 and $133.33. Use the schedule matching the actual payment frequency, rather than dividing a monthly result mechanically. Our payroll-frequency guide explains the distinction.
Why might a bonus or low-wage paycheck look different?
A lump-sum annual bonus has a separately published rate
The 3.20% local schedule’s final page specifies 9.70% for a lump-sum annual bonus. This combines the 6.50% highest state rate with the 3.20% highest local rate for that county; it is different from the ordinary monthly example’s 7.95% row. A separate fictional $2,000 annual bonus under that instruction gives $194 Maryland withholding, before any other taxes or applicable adjustments. It does not make the employee’s entire annual income taxable at 9.70%.
The current guide directs use of the highest state and applicable highest county rate for this annual-bonus treatment. Do not apply the Montgomery rate to a different county or assume every irregular payment follows the identical annual-bonus instruction. Ask payroll how the particular bonus, commission, back-pay payment, or combined payment was categorized and calculated.
No withholding and a formally exempt certificate are different situations
The percentage schedules have low-pay instructions; the monthly 3.20% schedule says not to withhold on gross wages below $417. Other specific low-income provisions also appear in the guide. A zero line therefore needs its actual explanation, not an assumption that a form was missing or that every tax should be zero.
For an ordinary MW507 line 3 exempt claim, the employee must satisfy both the prior-year and current-year no-Maryland-tax-liability conditions on the form. For a 2026 claim, those years are 2025 and 2026. Receiving some refund is insufficient if there was still Maryland tax liability. Students and seasonal workers must meet the relevant conditions; the job description alone creates no exemption. The form requires the qualifying no-liability exemption to be renewed by February 15 of the following year. Federal withholding and FICA treatment remain separate.
What if you work in Maryland but live in another state?
A nonresident is not automatically subject to a Maryland resident county rate. Residency, work location, reciprocal agreements, and certain local-tax exceptions determine the correct treatment. Use the current certificate and source records rather than selecting a county solely from the employer’s mailing address.
DC, Virginia, West Virginia, and Pennsylvania have wage-reciprocity provisions
Qualifying District of Columbia, Virginia, and West Virginia residents use the applicable MW507 nonresidence certification. Pennsylvania has a separate state-exemption line and local-tax checks. The form explains the Maryland place-of-abode restrictions for DC, Virginia, and Pennsylvania and separately states the West Virginia wage exception regardless of time spent in Maryland. Maintaining a Maryland abode for 183 days or more can change the DC/VA/PA analysis; verify residency before claiming the exemption.
Pennsylvania reciprocity does not automatically remove every local deduction. MW507 line 5 addresses the state portion. Its instructions require a local-tax review and provide exemptions for qualifying York or Adams County localities on line 6, or other Pennsylvania localities that do not tax Maryland residents on line 7. Follow the form’s additional line-4 instruction when those local exemptions apply. Otherwise, a Maryland workplace-locality component can remain. Give payroll the actual Pennsylvania local jurisdiction, not merely “PA resident.”
For an ordinary nonresident working in Maryland without a reciprocal exemption, the state provides a schedule incorporating a 2.25% special nonresident tax rather than resident county tax. Separate rules apply when the worker lives in an out-of-state locality that taxes Maryland residents: the Comptroller’s employer guidance describes Maryland workplace-local tax in those cases. Do not automatically add a 2.25% charge and a full resident county deduction together. Ask which nonresident or local-tax rule and schedule payroll applied.
Maryland residents working elsewhere, remote work, and moves
A Maryland resident can still have Maryland tax obligations on wages earned outside the state. For residents working and paying withholding in Delaware or another nonreciprocal state, the current guide provides a Delaware/nonreciprocal-state calculation incorporating local tax and a credit for other-state or locality tax. Simply applying two full resident schedules can overstate withholding.
Keep domicile, physical workdays, moves, and employer location separate. The Comptroller’s domicile and residency release explains why a temporary absence does not by itself end Maryland domicile. The individual filing guidance also explains part-year and nonresident situations. A remote-work agreement or address update alone does not settle multistate sourcing, credits, or the return’s county determination.
Provide payroll with dated address and work-location records and request a coordinated state review after a move. Military-spouse relief has its own eligibility and documentation rules, including the applicable MW507 and MW507M process; do not use a general reciprocity checkbox as a substitute. Independent-contractor business income also requires a separate analysis, rather than treating MW507 as a contractor payroll form. See our guide to employee and contractor terminology.
How do you reconcile Maryland withholding with YTD totals and the W-2?
Compare the current payment and year-to-date amounts using the same definition. If the pay stub separates state and local lines, add their actual withholding for a combined Maryland total. If it already displays a combined number, do not add a second informational local amount. Federal payments and employer costs do not belong in this reconciliation.
The 2026 Maryland Employer Withholding Guide, page 7, directs employers to combine Maryland state and local withholding in W-2 box 17 and leave box 18 blank. Thus, a separate box 19 amount is not necessary to demonstrate that the Maryland county portion was withheld. The 2026 IRS W-2 instructions direct employers to the state or locality for specific reporting requirements.
For a separate fictional annual-record example, payroll shows $2,400 state withholding and $1,600 county withholding, with no corrections or additional Maryland withholding outside those recorded components. Their $4,000 combined total reconciles to the Maryland amount in box 17. This is an assumed record comparison, not the annual liability of the $5,000 monthly employee above. Extra withholding already included in the ledger should not be added again.
What should you send payroll when the amount seems wrong?
- Identify the payment. Supply the pay date, period, frequency, earnings, Maryland-taxable wages, and the specific current/YTD deduction code.
- Confirm the jurisdiction. Provide residence county, dated moves, work locations, and any reciprocal-state or local-tax documentation.
- Confirm the certificate on file. Ask for the effective MW507 status, exemption count, extra dollars, and any Comptroller-directed restriction.
- Request the calculation. Ask which year’s schedule, local group, payroll period, income row, and rounding convention were used. For a bonus, identify its separate treatment.
- Reconcile the history. Check prior YTD plus the current withholding, allowing for documented reversals, voids, off-cycle checks, or corrections.
- Resolve the appropriate record. Ask whether payroll needs a future certificate change, a payroll correction, a corrected W-2, or employer reporting amendments. A future election does not automatically correct an earlier reported amount.
Our final-stub and W-2 reconciliation guide helps separate wage differences from tax-payment differences, and our net-pay guide traces deductions to the deposit. Keep a written explanation of any change and the original documents.
When preparing a statement with GeneratePayStub, use verified payroll inputs and actual payment records. Creating a document does not file employer returns, remit withheld funds, correct a government tax account, or establish worker classification. A clear statement should accurately reflect the underlying payroll; a disputed tax calculation must be resolved in that payroll record.
Quick answers about Maryland tax on a pay stub
Is county tax a percentage of Maryland state income tax?
No. The official 2026 guidance bases local tax on taxable income independently of the state-tax amount. Use the appropriate combined withholding calculation rather than multiplying the state deduction by the county rate.
Does every Maryland employee pay 7.95%?
No. That is one combined row for a 3.20% local group. Different localities, income rows, certificate settings, payment categories, and residency exceptions can change the result. It is also not a flat rate applied to all gross earnings.
Why did my Maryland tax change even though my pay did not?
Check the effective certificate, extra election, address or local group, annual table update, benefit taxability, and any correction. A verified county or certificate change can affect tax without changing gross pay.
Can I use zero exemptions to stop Maryland withholding?
No. Zero reduces the schedule’s exemption allowance and can increase withholding. A lawful exempt claim requires the applicable certificate conditions and documentation.
Why is my Maryland W-2 local-tax box blank?
Maryland instructs employers to report its state and local withholding together in box 17. Reconcile that combined amount with payroll’s Maryland withholding records before requesting a correction.
Practical starting point: establish the correct Maryland wage amount, residence or nonresident rule, MW507 settings, and current payroll schedule. Then trace one payment and its YTD change. That produces a useful payroll question and avoids mistaking a combined label, grouped local rate, or calculation allowance for an error.