Paycheck Calculator Maryland - MD

Income Information

Federal Withholding

State Withholding


Additional Information


Maryland - MD Paycheck Calculator: Hourly and Salary

Maryland, or call it "Little America", due to diverse geography, various cultures and varying climate packed in a 9th smallest state in landmass. Located in the Mid-Atlantic region of the eastern United States, Maryland has an abundance of coastlines and waterways in the Atlantic Ocean and the Chesapeake Bay.

Mulling over a move to Maryland for a new job or business? Can't decide what job offer to accept or what business to start? Don't worry! We are here to help. Check out our handy guide that includes all the information about:

  1. Things that you must know before moving to Maryland
  2. Step by Step guide to calculating Paycheck using our Paycheck Calculator that would help you to compare different jobs in terms of take-home pay. Moreover, it will also help the employers to deduce their employment cost for their new small business.
  3. Maryland Payroll Facts
  4. Maryland Payroll Laws and much more.

Moving to Maryland:

Maryland, a state with a cornucopia of opportunities, rich history, diverse culture, varied geography, and remarkable crab cakes. This state offers tons of reasons for relocating to this state, from which some of them are as follow:


Business and Job Market:

Maryland has an unemployment rate of 4.0%, slightly lower than the national average, with the minimum wage rate of $9.25 / hour. Some of the fastest-growing jobs in this state (listed by zippia.com) are available for an information security analyst, occupational therapist, interpreter/translator, home health Aid, and personal trainer. Moreover, some of the highest paying jobs are for doctors, psychiatrists, surgeons, a pediatrician, and nurse anesthetists. Maryland is also a hub for employment in the federal government due to 60 federal agencies located in the state.

Maryland has the 26th best economy across the nation, and is among the top wealthiest state in the US, giving great opportunities for businesses especially in industries like BioHealth & Life Sciences, IT & Cybersecurity, and Aerospace & Defense.


Education:

Maryland ranks as the sixth-best in the nation for state's best schools by USA Today. The state also houses some of the top federal military academy, notable liberal arts colleges and acclaimed research universities including Johns Hopkins University (Baltimore), University of Maryland – College Park (College Park), Howard County Public Schools and The University of Maryland – Baltimore County (Baltimore).


Housing and other Cost of Living:

Maryland's cost of living index is 124.6, which is fairly higher than the national average of 100 points. Therefore, living here won't be cheap. One of the significant factors of cost of living is housing, which is slightly expensive than the national average, with the median home price in Maryland is $294,100, and the median rent for a house is $1,650 per month. However, some cities are comparatively cheaper to live like Brunswick, Fruitland, and Hampstead.


Climate:

Maryland experiences a diverse climate despite its small size, from the humid subtropical climate in Eastern Maryland to humid continental climate in the west, the state sees four distinct seasons with moderate to frigid winters and hot summers.


Outdoor:

The State's most populous city Baltimore is just 30 minutes drive from the nation's capital city; Washington D.C., wherefore, employees who can't afford to live in U.S Capital, prefer to live in Maryland. Apart from the easy access to the popular cities, this state offers all four seasons with plenty of other outdoor opportunities including Nature & Parks like Antietam National Battlefield, Museums like United States Holocaust Memorial Museum, Zoos, Aquariums, and Amusement Parks like Salisbury Zoo and National Aquarium and numerous mountains, farms, beaches, and big cities.


After reading all the aforementioned perks, you must have made up your to settle in here. Now, moving on to the next step is to find the best-paying job or a profitable small business. And for both, Paycheck calculation is the most important thing.

But before moving on to steps to calculate paychecks, you must be aware of some of Maryland's Payroll facts:

Maryland Payroll Facts:

  • Maryland residents are charged with federal income tax on a paycheck, with rates ranging from 0% to 37%, having seven tax brackets depending on income level and filing status.
  • The state's residents are also required to pay state income tax, with progressive rates ranging from 2% to 5.75%, with eight tax brackets, depending on filing status and income level.
  • All counties as well as Baltimore city levy local income tax, on a flat rate ranging from 1.75% to 3.2%, depending on which county and city, you live in.
  • The Federal Minimum wage rate is $7.25, whereas the Maryland state minimum wage rate is $10.10 (from July 2018 onwards). Moreover, the cash minimum wage rate for Tipped employees earning more than $30, is $3.63, with a maximum tip credit of $6.47. However, there are some types of employees exempted from the Minimum wage law, which is discussed in detail ahead.
  • Employers or employees are not required to pay State Disability Insurance (SDI) Tax, however, only employers are entitled to pay State Unemployment Insurance tax, at the rates ranging from 0.3% to 7.5%, on the first $8500 earned by each employee in a year. However, new employers only have to pay at a flat rate of 2.6%.
  • The Median Household income of Maryland's residents is $78,916, according to United States Census Bureau.
  • The State requires the employers to pay their employees at one and half times the regular hourly rate for each excess hour worked after forty hours in a workweek.
  • According to ziprecruiter.com, the average salary in Maryland is $67,395, which is slightly higher than the national average of $66,567.
  • The livable wage in Maryland for a single adult with no child is $15.08, and for a couple (one working) with two children is $29.53.
  • Maryland has reciprocal agreements with Virginia, the District of Columbia, Pennsylvania and West Virginia, allow residents of one of the reciprocal states to work in other reciprocal states without having to file nonresident state tax returns there.

As you are aware of State Payroll Facts, let's head towards the steps that are involved in calculating Paycheck.

Step 1 - Calculating Gross Pay:

  1. To calculate Gross Pay, first, you need to determine the Pay Type of an employee. It is whether an employee is paid on an hourly basis or salary basis.

Hourly Employees:

Hourly Base Employees are paid for each hour they work in a day or a week, at the mutually agreed hourly rate. However, the mutually agreed hourly rate must be as per the Federal and State Minimum Wage law.

Hourly Employees are also entitled to receive overtime, for each excess hours worked after Regular worked hours in a day or week. The overtime rate in most of the states is one and a half times the regular hourly rate.


Salaried Employees:

Salaried employees receive a fixed but mutually agreed on pay, for a decided pay frequency, usually semi-monthly or monthly. However, for gross payment determination for a pay period, the annual salary is divided by the pay frequency.

Most of the salaried employees are exempted from Overtime law. Therefore, they are not entitled to receive overtime, regardless of how many excess hours they work. However, some exceptional salaried employees may be eligible to receive overtime according to federal or state law.


  1. Remember, Supplementary Wages like bonuses, commissions, and paid leaves, as well as double time and fringe benefits, are also taxable wages. Therefore they must also be included in gross pay before federal and state tax calculation.

Step 2 – Subtracting Pre-Tax Deductions (If Any):

Pre-Tax Deduction is an amount deducted from employee's gross pay before any withholding tax is deducted. These deductions have several advantages, including the reduction of taxable wages. Hence, increasing the take-home pay of an employee. However, not all deductions can be considered as free from all taxes, which means some of the deductions may require certain taxes to be withheld.

Some of the standard Pre-tax deductions are:

  • Health Savings Accounts or FSA or HSA plans
  • Commuter Benefits
  • Healthcare Insurance
  • Short-Term Disability
  • Dental Insurance
  • Medical Expenses and Flexible Spending Accounts
  • Vision Benefits
  • Retirement funds like a traditional 401(k)

Note: Pre-Tax deduction rate changes from year to year, according to inflation and costs of living by the federal government. Therefore, you must keep yourself updated with all rates before making any deductions.


Step 3 – Calculate and Subtract Federal Taxes:

Federal Taxes are taxes deducted from almost every employee, regardless of which state or county they work in.

Federal Taxes are calculated according to the details provided by the employee on Form W-4, which comprises of income, filing status, number of dependents, number of allowances, number of jobs, etc.

The details are form W-4, are assessed and used by the employer to deduce the federal tax bracket, in which the employee's taxable wage lay upon.

Federal Taxes range from 10% to 37% have seven tax brackets, depending on filing status, income, and the number of allowances claimed. Below is the income tax details for the year 2019:

Single Filers
Taxable Income Rate
$0 - $9,700 10%
$9,700 - $39,475 12%
$39,475 - $84,200 22%
$84,200 - $160,725 24%
$160,725 - $204,100 32%
$204,100 - $510,300 35%
$510,300+ 37%

Married, Filing Jointly
Taxable Income Rate
$0 - $19,400 10%
$19,400 - $78,950 12%
$78,950 - $168,400 22%
$168,400 - $321,450 24%
$321,450 - $408,200 32%
$408,200 - $612,350 35%
$612,350+ 37%

Married, Filing Separately
Taxable Income Rate
$0 - $9,700 10%
$9,700 - $39,475 12%
$39,475 - $84,200 22%
$84,200 - $160,725 24%
$160,725 - $204,100 32%
$204,100 - $306,175 35%
$306,175+ 37%

Head of Household
Taxable Income Rate
$0 - $13,850 10%
$13,850 - $52,850 12%
$52,850 - $84,200 22%
$84,200 - $160,700 24%
$160,700 - $204,100 32%
$204,100 - $510,300 35%
$510,300+ 37%

Step 4 – Deduct FICA Taxes:

Along with Federal Withholding, employers are also required to withhold Federal Insurance Contributions Act (FICA) taxes from the employee's paycheck as well as pay a matching amount themselves to the IRS.

There are two types of FICA taxes:


  1. Social Security:

Employers are entitled to withhold 6.2% from the first $132,900 (wage base limit for 2019), taxable wages earned by the employee. Moreover, the employer is also required to pay an equal amount to the IRS for each employee.


  1. Medicare:

Medicare tax is another type of FICA Tax that an employer must withhold from the taxable gross wage of the employee, at the rate of 1.45%. Unlike social security, there is no wage base limit. However, if the employee earns more than the defined threshold than he/she is subjected to an additional 0.9% of the Additional Medicare Tax rate, for every dollar earned above the threshold amount.

Like Social Security, IRS also requires the employer to pay an equal amount of Medicare tax for each employee.


Step 5 – Payment of FUTA Taxes

The Federal Unemployment Tax Act (FUTA) is a tax that the IRS requires the employer to pay without deducting anything from the employee's paycheck.

The FUTA Tax rate for 2019 is 6.0% of the first taxable wage up to $7000 of an employee. However, once the taxable wage limit is crossed for a particular employee, then the employer no longer has to pay this tax.


What to reduce FUTA Tax?

Yes! Then you must pay State Unemployment Insurance (SUI) tax in full and on time and get a FUTA tax credit of up to 5.4%. Which means, you saved a whopping 90% from FUTA Tax.


Step 6 – Subtract Post-Tax Deductions (If any):

Although, employers are not required to withhold any amount as a post-tax deduction, unless if an employee voluntarily asks to do so. However, there are some deductions ordered by the court like child support or wage garnishment, which the employer is entitled to deduct.


Step 7 – Withhold Maryland State Payroll Taxes:

As we have calculated Federal Payroll taxes, now it's time to calculate Maryland State Payroll Taxes. The State requires the employers to pay some taxes themselves and rest to withhold from the employee's paycheck. Following are the State payroll taxes that usually most of the employers and employees pay:

Maryland State Income Tax

The state requires the employer to withhold the Maryland State income tax from the employee's paycheck, according to the details provided by the employee on Form MW507, which contain all the necessary details of the employee such as filing status, a number of allowances to claim, number of jobs, etc. This form is filled by the employee at the starting of the job. The employee must ensure that the form is updated regularly when any significant event occurs like marriage, divorce or child's birth.

The Maryland state income tax is divided into eight tax brackets, ranging from 2% to 5.75%, depending on income level and filing status. Moreover, the state Income-tax rate of flat 5.75% plus local income tax rate is charged on Supplemental Wages and bonuses that are paid separately.

Single Filers
Maryland Taxable Income Rate
$0 - $1,000 2.00%
$1,000 - $2,000 3.00%
$2,000 - $3,000 4.00%
$3,000 - $100,000 4.75%
$100,000 - $125,000 5.00%
$125,000 - $150,000 5.25%
$150,000 - $250,000 5.50%
$250,000+ 5.75%

Married, Filing Jointly
Maryland Taxable Income Rate
$0 - $1,000 2.00%
$1,000 - $2,000 3.00%
$2,000 - $3,000 4.00%
$3,000 - $150,000 4.75%
$150,000 - $175,000 5.00%
$175,000 - $225,000 5.25%
$225,000 - $300,000 5.50%
$300,000+ 5.75%

Married, Filing Separately
Maryland Taxable Income Rate
$0 - $1,000 2.00%
$1,000 - $2,000 3.00%
$2,000 - $3,000 4.00%
$3,000 - $100,000 4.75%
$100,000 - $125,000 5.00%
$125,000 - $150,000 5.25%
$150,000 - $250,000 5.50%
$250,000+ 5.75%

Head of Household
Maryland Taxable Income Rate
$0 - $1,000 2.00%
$1,000 - $2,000 3.00%
$2,000 - $3,000 4.00%
$3,000 - $150,000 4.75%
$150,000 - $175,000 5.00%
$175,000 - $225,000 5.25%
$225,000 - $300,000 5.50%
$300,000+ 5.75%

Note: Employees are suggested to study and deduce the optimal number of Allowances to claim from Maryland State tax, as these allowances can significantly affect your take-home pay. Remember choosing more than requires a number of allowances may lead to underpayment of taxes that may lead to a penalty. On the other hand, choosing less than the required number of allowances will cause your paycheck amount to reduce, as you will be lending tax-free money to the state for a whole year.


State Unemployment Insurance (SUI) Tax:

Besides, State income tax, Maryland State also entitles the employers to pay State Unemployment Insurance (SUI) Tax at the rate range from 0.3% to 7.5% on the first $8,500 earned by each of their employees. However, New Employers are given relief to pay a lower flat rate of 2.6% on wages earned by each employee.

Step 8 – Withhold Local Tax:

In Addition to Maryland State Income tax, all counties as well as Baltimore city levy local income tax, on a flat rate ranging from 1.75% to 3.2%, depending on which county and city, you live in.

Jurisdiction Resident Rate
Allegany County 3.05%
Anne Arundel County 2.50%
Baltimore City 3.20%
Baltimore County 2.83%
Calvert County 3.00%
Caroline County 3.20%
Carroll County 3.03%
Cecil County 3.00%
Charles County 3.03%
Dorchester County 2.62%
Frederick County 2.96%
Garrett County 2.65%
Harford County 3.06%
Howard County 3.20%
Kent County 2.85%
Montgomery County 3.20%
Prince George's County 3.20%
Queen Anne's County 3.20%
St. Mary's County 3.00%
Somerset County 3.20%
Talbot County 2.40%
Washington County 2.80%
Wicomico County 3.20%
Worcester County 1.75%

Step 9 – Calculate Pay Check:

Once you are done with all elements (steps) discussed earlier, you will have a net pay amount for each employee. Now all you have to do is pay employees on time. Also, to file all Federal Taxes, State Taxes, FICA, and FUTA taxes on time, to avoid any penalties.


Federal and Maryland Payroll Laws:

  • Maryland State law requires the employers to maintain at least a pay frequency of twice a week (Bi-weekly) or twice a month (Semi-Monthly) for the employees. However, professional, executive, administrative employees can choose a longer payment period.
  • The Federal Minimum wage rate for non-exempted employees is $7.25 and the Maryland state minimum wage rate is $10.10. However, some following employees are exempted from this law:
    • Administrative, executive, or professional employees.
    • Minor employees of age under 16 years and employed for no more than 20 hours a week.
    • Commission-based employees.
    • Tipped Employees.
  • Tipped Employees (earning more than $30 per month in tips) are allowed to be paid at the Cash Minimum wage of $3.63, with a maximum tip credit of $6.47.
  • The Federal FLSA and Maryland Overtime law require the employers to pay overtime at time and half of the regular hourly rate to the employees for each extra hour worked after 40 hours in a workweek. However, "Executive," "Administrative" or "Professional," employees on salary along with some other types of employees are exempted from overtime law.
  • Employers in Maryland are required to provide rest and meal break of 30 minutes to the employees of age under 18 if the employee is scheduled to work for five or more consecutive hours. Moreover, Employers (not covered in the Healthy Retail Employee Act) aren't required to provide breaks, including lunch breaks, for employees age 18 years old or older.
  • In Maryland, the workweek is considered as 168 consecutive hours that are regularly recurring and fixed. Moreover, it may begin at any hour of the day on any day of the workweek.
  • Maryland State Law doesn't require employers to provide employees with either paid or unpaid vacation benefits.
  • The State requires the employers (with 15 or more employees) to provide paid sick leave and it also requires the employers (with 14 or fewer employees) to provide unpaid sick leaves.
  • Maryland State law doesn't require the employer to pay severance pay when employment terminates unless promised in advance in an employment contract, policy or agreement.

FAQs

Answer: Following are the types of taxes and their percentages taken out of the paycheck in Maryland:

  • Federal Income Tax: The federal charges income tax on to Maryland residents, at the rates ranging from 10% to 37%, with seven tax brackets, depending on filing status and income level.
  • Maryland State Income Tax: The state also charges income tax on to its residents, at the rates ranging from 2% to 5.75%, with eight tax brackets, depending on income level filing status.
  • Baltimore City (Local Income Tax): Baltimore is the only city of Maryland that levy local income tax onto its residents, at the flat rate of 3.20%.
  • Maryland County (Local Income Tax): All counties in Maryland charges an additional local income tax on paychecks, at a flat rate ranging from 1.75% to 3.2%, depending on which county you live in.
  • FICA Tax: in addition to Federal Income Tax, the federal also charges FICA tax on the paychecks at the rate of 7.65%, comprising of Social Security (6.2%) and Medicare Tax (1.45%). Moreover, if the annual income exceeds the defined threshold, the additional Medicare tax of 0.9% is also charged.

Answer: Working for a minimum of 30 hours in a week is considered full-time in Maryland, according to the Affordable Care Act (ACA).

Answer: Yes, all counties, as well as Baltimore City, have local income taxes having flat rates ranging from 1.75% to 3.2%.

Answer: No, all Social Security retirement benefits (incomes) are exempted from taxation in Maryland.

Answer: Yes, it is illegal not to pay overtime in Maryland. As a result, employers that do not pay overtime may have to pay triple damages to the violated employees.

Answer: You have to file an income tax return in Maryland if meet the requirement provided in the table below:

Filing Status Gross Income
Single (including dependent taxpayers)
Under 65 $ 12,000
65 or older $ 13,600
Head of Household
Under 65 $ 18,000
65 or older $ 19,600
Married Filing Jointly
Both under 65 $ 24,000
One spouse 65 or older $ 25,300
Both 65 or older $ 26,600
Married Filing Separately
All (regardless of age) $ 5
Qualifying Widow(er)
Under 65 $ 24,000
65 or older $ 25,300

Answer: The Maryland state minimum wage rate is $10.10 for non-exempted employees.

Answer: Livable wage in Maryland for a single adult with no child is $15.08, and for a couple (one working) with two children is $29.53.

Answer: The average salary of a Frederick, Maryland's resident is $32,751 a year.

Answer: The average salary in Maryland is $67,395, which is slightly higher than the national average of $66,567.

Other States Calcutors