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How to Calculate 2023 Maryland State Income Tax by Using State Income Tax Table

1. Find your income exemptions

2. Find your pretax deductions, including 401K, flexible account contributions ...

3. Find your gross income

4. Check the 2023 Maryland state tax rate and the rules to calculate state income tax

5. Calculate your state income tax step by step

6. If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed.

Learn more about the in house payroll tax solution for Maryland small businesses here.
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Maryland State Tax Tables


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2024 Maryland State Tax Witholding Table
2023 Maryland State Tax Witholding Table
2022 Maryland State Tax Witholding Table
2021 Maryland State Tax Witholding Table
2020 Maryland State Tax Witholding Table
( 2019   2018   2017   2016   2015   )

Tax rate used in calculating Maryland state tax for year 2023

State Abbreviation:

MD

State Tax Withholding State Code:

24

Acceptable Exemption Form:

MW 507

Basis For Withholding:

State Exemptions

Acceptable Exemption Data:

>S, M</ Number of Exemptions

TSP Deferred:

Yes

Special Coding:

Determine the Total Number Of Allowances field as follows:

First Position - >S = Single; M = Married.<

Second and Third Positions - Enter the number of exemptions claimed.

Additional Information:

The Maryland state income tax formula contains a computation for Maryland county tax. Residents of the state of Maryland are required to pay the appropriate county tax in addition to the state income tax. Nonresidents of Maryland pay only the state income tax. Refer to the withholding formula for information on the individual county rates.



Withholding Formula >(Maryland Effective 2023)<
  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.

  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes flexible spending account - health care and dependent care deductions) from the amount computed in step 1.

  3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.

  4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.1

    5. 1 If gross annual wages are less than $5,000, taxes will not be withheld.
  5. Determine the standard deduction by applying the following guideline and subtract this amount from the gross annual wages computed in step 4.

    6. Standard Deduction2 = 15 percent x Annual Wages

    2 Minimum of $1,550/Maximum of $2,350
  6. Determine the dependent allowance by applying the following guideline and subtract this amount from the result of step 5 to determine the taxable income.

    7. Exemption Allowance = $3,200 x Number of Exemptions


  7. Apply the taxable income computed in step 6 to the following table to determine the annual Maryland tax withholding.

    8. All Employees
    Married

    If the Amount of
    Taxable Income Is:

    The Amount of Maryland
    Tax Withholding Should Be:


    Over:

    But Not
    Over:

     
     
     

    Of Excess
    Over:

    $ 0
    $ 150,000
    $ 0
    plus
    4.75%
    $ 0
    150,000
    175,000
    7,125
    plus
    5.00%
    150,000
    175,000
    225,000
    8,375
    plus
    5.25%
    170,000
    225,000
    250,000
    11,000
    plus
    5.50%
    225,000
    250,000
    >and over
    15,125
    plus
    5.75%
    250,000

    Single

    If the Amount of
    Taxable Income Is:

    The Amount of Maryland
    Tax Withholding Should Be:


    Over:

    But Not
    Over:

     
     
     

    Of Excess
    Over:

    $ 0
    $ 100,000
    $ 0
    plus
    4.75%
    $ 0
    100,000
    125,000
    4,750
    plus
    5.00%
    100,000
    125,000
    150,000
    6,000
    plus
    5.25%
    125,000
    150,000
    250,000
    7,312.5
    plus
    5.5%
    150,000
    250,000
    > and over
    12,812.5
    plus
    5.75%
    250,000

  8. Divide the result of step 7 by 26 to obtain the biweekly Maryland state tax. Residents of Maryland are to proceed to step 9 to compute Maryland county tax.

  9. If the employee is a resident of the state of Maryland, compute the annual county tax withholding as follows:

a. Repeat steps 1 through 5.

b. Determine the dependent allowance by applying the following guideline and subtract this amount from the result of step 9a to determine the taxable county income.

Exemption Allowance = $3,200 x Number of Exemptions

c. Apply the taxable income computed in 9b to the following guideline to determine the appropriate county income tax:

Compute the Annual Income
Tax Withholding For:

By Multiplying the Annual
Taxable Wages By:

Allegany

3.05%

Anne Arundel

2.81%

Baltimore City

3.20%

Baltimore

3.20%

Calvert

3.00%

Caroline

3.2%

Carroll

3.03%

Cecil

3.00%
Charles

3.03%

Dorchester

3.2%

Frederick

2.96%

Garrett

2.65%

Harford

3.06%

Howard

3.20%

Kent

3.2%

Montgomery

3.20%

Prince George's

>3.20%<
Queen Anne's

3.2%

St. Mary's

3.00%

Somerset

3.20%
Talbot

2.40%

Washington

2.95%

Wicomico

3.20%

Worcester

2.25%

d. Divide the result of step 9c by 26 to obtain the biweekly Maryland county tax.

e. Add the results of steps 8 and 9d to determine the resident's biweekly Maryland state and county tax combined withholding.




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