How this calculator works
The calculator starts with your gross salary and subtracts pre-tax deductions: traditional 401(k) or 403(b) contributions and health premiums paid through a cafeteria plan.
Federal income tax uses the 2026 brackets and standard deduction ($16,100 single, $32,200 married filing jointly). Social Security is 6.2% of wages up to $184,500, and Medicare is 1.45% of all wages plus 0.9% on wages above $200,000. Traditional 401(k) contributions lower income tax but not Social Security or Medicare; cafeteria-plan health premiums lower both.
Maryland taxable income is your federal adjusted gross income minus the Maryland standard deduction and personal exemptions. For 2026 the Comptroller’s withholding guide uses a standard deduction of $3,400, up from $3,350 after its first cost-of-living adjustment. Each exemption is worth $3,200 but shrinks above $100,000 of income ($150,000 joint) and disappears above $150,000 ($200,000 joint).
State tax uses ten brackets: 2%, 3% and 4% on the first $3,000, 4.75% up to $100,000 ($150,000 joint), then 5% to 5.75%, and since 2025 6.25% and 6.5% for incomes over $500,000 and $1 million ($600,000 and $1.2 million joint).
Local tax is charged on the same taxable income at your county’s rate. Most counties use one flat rate. Anne Arundel uses brackets (2.70%, 2.94% and 3.20%). Frederick picks a single rate from 2.25% to 3.20% based on your total taxable income and applies it to all of it.
Local tax depends on where you live on December 31, not where you work. Nonresidents who work in Maryland pay a special 2.25% rate instead of a county rate.
Worked example
Single, Montgomery County, $75,000 salary, paid every two weeks, 5% to a 401(k)
- After the $3,750 401(k) contribution, federal adjusted gross income is $71,250. Federal tax, Social Security and Medicare come to about $12,583.
- Maryland taxable income: $71,250 − $3,400 standard deduction − $3,200 exemption = $64,650.
- State tax: $20 + $30 + $40 on the first $3,000, plus 4.75% of $61,650 ($2,928.38) = about $3,018.
- Montgomery County tax: 3.20% of $64,650 = $2,068.80. In Anne Arundel it would be $1,780.71, and in Worcester $1,454.63.
- Take-home pay is about $53,580 a year, or $2,060.78 per paycheck.
Questions people ask
Which Maryland county has the highest income tax?
For 2026, Dorchester and Kent counties charge the maximum 3.30%. Most other large jurisdictions, including Montgomery, Prince George’s, Howard, Baltimore County and Baltimore City, charge 3.20%. Worcester County has the lowest rate at 2.25%.
I live in Virginia or DC and work in Maryland. Do I pay county tax?
No county tax, and usually no Maryland tax at all: Maryland has reciprocal agreements with DC, Virginia, Pennsylvania and West Virginia, so residents of those places pay tax to their home state instead. Delaware residents do pay Maryland tax, including the 2.25% nonresident rate.
Did Maryland’s county rates change in 2026?
Two counties raised their rates for 2026: Allegany from 3.03% to 3.20%, and Kent from 3.20% to 3.30%. State law now allows counties to charge up to 3.30%.
Why is my Maryland withholding different from this estimate?
Employers withhold using tables based on your Form MW507, which may round differently and ignore the lowest state brackets. Credits, itemized deductions and a second job will also change your actual tax.
Sources
Last reviewed October 2, 2026