Maryland Paycheck Tax Guide: County Rates, New Bracket, and Take-Home Pay (2026)

Maryland paycheck tax: 4.75% to 6.5% state rates plus county income tax up to 3.30%. All 23 county rates and take-home pay at $60K to $120K.

A Maryland paycheck has two state-level deductions, not one. The state income tax and the county income tax are both mandatory, both apply based on where you live, and both appear on the same withholding line in many payroll systems. New employees often see a deduction labeled "MD State + County" without realizing it packages two separate rates that can differ by more than one percentage point depending on which county they live in.

The Maryland Paycheck Calculator computes take-home for any salary, county, and filing status with the 2025 bracket structure built in. This guide covers the new top bracket, what every county charges, and how to read the combined withholding on your stub.

Maryland State Income Tax: Eight Brackets with a New Top Rate

Maryland taxes income on a progressive schedule with eight brackets for single filers. For tax year 2025, a new 6.5% bracket applies to income above $250,000 for single filers and above $300,000 for married filing jointly. The previous top rate was 5.75%.

Maryland state income tax brackets for single filers (2025):

The lowest three brackets cover only $3,000 in income and produce $90 in combined tax. For a worker earning $80,000, those early brackets are a rounding error. The 4.75% rate does virtually all of the work.

Maryland state tax at $80,000 (single):

$0 to $1,000 at 2%: $20
$1,001 to $2,000 at 3%: $30
$2,001 to $3,000 at 4%: $40
$3,001 to $80,000 ($76,999 at 4.75%): $3,658
Total Maryland state tax: $3,748
Effective state rate: 4.69%

The lower brackets save the taxpayer exactly $90 compared to a flat 4.75% from dollar one. Maryland's approach to the first $3,000 is largely cosmetic.

Maryland state tax at $130,000 (single):

$0 to $3,000 (three low brackets): $90
$3,001 to $100,000 ($97,000 at 4.75%): $4,608
$100,001 to $125,000 ($25,000 at 5%): $1,250
$125,001 to $130,000 ($5,000 at 5.25%): $263
Total Maryland state tax: $6,211
Effective state rate: 4.78%

Income Maryland does not tax:

Social Security benefits are fully exempt from Maryland state income tax. Pension income from the federal government or Maryland state retirement systems receives a partial exclusion, up to $34,300 for taxpayers age 65 or older in 2025. Military retirement income is partially exempt at the same level.

Maryland County Income Tax: 23 Counties, All at Different Rates

Every Maryland resident pays a county income tax on top of the state rate. The state collects it alongside state income tax and returns the revenue to the county. It applies to the same taxable income as the state calculation, uses the same W-4 or MW507 elections, and appears on most pay stubs as a single combined line with state income tax.

All 23 Maryland counties and Baltimore City levy a local income tax. Rates for 2025:

Dorchester County at 3.30% charges the highest rate in the state. Worcester County at 2.25% and Talbot County at 2.40% are the lowest. For a worker earning $80,000, the difference between living in Dorchester versus Worcester is $840 per year, or about $32 per biweekly paycheck.

Anne Arundel and Frederick counties use slightly graduated local rate structures rather than a single flat rate. Anne Arundel applies 2.81% for most income levels, while Frederick uses a sliding calculation. Both ultimately produce effective county rates close to their published figures for income in the $50,000 to $200,000 range.

Which county rate applies:

The county where you live determines your county tax rate, not where you work. A Montgomery County resident commuting to Washington DC pays Montgomery's 3.20% rate. If you relocate to a lower-rate county, notify your employer and update your withholding form; the old county rate continues until the employer receives updated information.

Federal Withholding on a Maryland Paycheck

Federal income tax and FICA take a larger share than state and county combined for most Maryland workers. Federal withholding uses the W-4 and the IRS graduated brackets.

2025 federal income tax brackets for single filers:

FICA applies to all W-2 wages:

• Social Security: 6.2% on wages up to $176,100 (2025 wage base)
• Medicare: 1.45% on all wages, plus 0.9% on wages over $200,000

Federal vs Maryland at $80,000 (single, Montgomery County):

Federal income tax (approximate): $10,294
Social Security ($80,000 x 6.2%): $4,960
Medicare ($80,000 x 1.45%): $1,160
Total federal: $16,414

Maryland state income tax: $3,748
Montgomery County tax ($80,000 x 3.20%): $2,560
Total state + county: $6,308

Total deductions: $22,722
Take-home: $57,278

Federal withholding accounts for 72% of the total tax in that scenario. The combined state and county share is 28%. Pre-tax elections change the picture: a $10,000 annual 401k contribution reduces federal taxable income at the 22% marginal rate ($2,200 savings) and Maryland taxable income at the combined state + county rate (approximately $800 savings), for a total of about $3,000 in annual tax savings.

The Ohio Paycheck Tax Guide covers a different structure where school district income tax layers onto state withholding in a way that parallels how Maryland's county tax works, but with more geographic variation.

Maryland Take-Home Pay at $60K, $80K, and $120K

Three scenarios for a single filer in Montgomery County (3.20%), no pre-tax deductions, standard W-4 with no adjustments, biweekly payroll:

County choice makes a real difference. The same $80,000 salary in Worcester County (2.25%) instead of Montgomery (3.20%):

Worcester County tax: $80,000 x 2.25% = $1,800
Montgomery County tax: $80,000 x 3.20% = $2,560
Annual difference: $760
Per biweekly paycheck: $29.23

Over a 30-year career at the same salary, that county rate difference compounds. Relocation within Maryland for a lower county rate rarely pencils out on its own, but for workers already considering a move for housing costs, the tax difference is worth factoring in.

Adding pre-tax deductions at $80,000 in Montgomery County:

401k contribution ($10,000/year pre-tax):
Reduced federal taxable income: saves ~$2,200 (22% marginal rate)
Reduced MD state + county tax: saves ~$640 (4.69% + 3.20% = 7.89%)
Total annual tax savings: ~$2,840
Net cost of $10,000 retirement contribution: $7,160

Health insurance premiums and FSA contributions reduce taxable income by the same mechanism. Most Maryland workers with access to these benefits leave money on the table by not fully understanding how each pre-tax dollar reduces both federal and combined state/county withholding.

Maryland vs Virginia, Pennsylvania, and DC

Maryland's neighboring states each use different local tax structures, which changes the comparison significantly depending on where a worker lives relative to their job.

Virginia does not allow localities to impose income taxes; its state-only rate of 5.75% top (5.0% effective at $80,000) is the full picture. For residents near the Maryland-Virginia border in Montgomery or Prince George's counties, the combined MD state + county rate is typically 2 to 3 percentage points higher than Virginia's rate at the same income.

Pennsylvania has no local income tax at the county level, but cities like Philadelphia add a 3.44% wage tax on residents. A Pennsylvania worker outside Philadelphia pays only the state's 3.07% flat rate, which is lower than Maryland's state-only rate.

For Maryland workers planning for retirement, the Roth IRA Contribution Calculator shows your 2026 maximum contribution based on MAGI. Single filers above $150,000 begin to see Roth eligibility phase out, a threshold that is relevant for Maryland professionals in government contracting, healthcare, and finance around the DC corridor.