Comptroller of Maryland. Serving the People. Peter Franchot, Comptroller
Spotlight on Maryland

Federal Income Tax Table Information

 

The Percentage Method of Withholding is addressed in this memo which includes extractions from the 2010 Federal Income Tax Withholding Tables (found in the IRS Publication 15-T, Circular E - Employer's Tax Guide).

Please Note:

  • For 2010, the "Making Work Pay" provision of the American Recovery and Reinvestment Act provides a refundable tax credit of up to $400 for working individuals and $800 for married taxpayers filing joint returns.  This tax credit will be calculated at a rate of 6.2 percent of earned income and will be handled through automated tax withholding changes effective 1/01/10.  This tax credit will phase out for a taxpayer with adjusted gross income in excess of $75,000, or $150,000 for married couples filing jointly.
  • It is not necessary to submit a Form W-4 to get the automated withholding change.  However, an employee with multiple jobs or married couples whose combined incomes place them in a higher tax bracket may elect to submit a revised W-4 to ensure enough withholding is held to cover the tax for his or her combined income.   
  • The annual personal exemption amount for 2010 remains at $3,650.00.
  • Tax calculations and estimates of net pay can be readily determined by using the Central Payroll Bureau Net Pay Calculator
  • Other important links are:

                                    Federal Income Tax Table Information
                                    2010 Maryland Withholding Tables

 

 ALLOWANCE TABLE

 Dollar Amount of Withholding Allowances 

 Number of
Withholding
Allowances

Biweekly
Pay
Period

Monthly
Pay
Period

 0

$  0 

$  0 

 1

140.38 

304.17

 2

280.76

608.34

 3

421.14

912.51

 4

561.52

1,216.68

 5

 701.90

1,520.85

 6

842.28

1,825.02

 7

982.66

 2,129.19

 8

1,123.04

 2,433.36

 9

1,263.42

2,737.53

10

1,403.80

3,041.70

Over 10 - Multiply amount of one withholding allowance ($140.38 for bi-weekly or $304.17 for monthly) by number of allowances claimed.

 

The annual personal exemption amount of $3,650 equals the biweekly amount of $140.38 (1 allowance) multiplied by 26, rounding to the nearest whole dollar, or the monthly amount of $304.17 (1 allowance) multiplied by 12, rounding to the nearest whole dollar.


NOTE:   Use of these tables to compute estimated tax withholdings will result in amounts that differ slightly (by a few cents) from the precise amounts computed by the Statewide Payroll System

 

2010 Federal Income Tax Withholding Information

 BIWEEKLY PAYROLL PERIOD

 Single Person - Including Head of Household  
Taxable Income* Amount of Income Tax Withheld is:
 Not over $233    0
     
 Over -  But not over -   Of excess over -
$233  -$401  10% -$233
$401  -$1,387  $16.80 plus 15% -$401
$1,387  -$2,604  $164.70 plus 25% -$1,387
$2,604  -$3.248  $468.95 plus 27%

-$2,604

$3,248  -$3,373  $642.83 plus 30%

-$3,248

$3,373  -$6,688  $680.33 plus 28%

-$3,373

$6,688 -$14,450 $1,608.53 plus 33% -$6,688
$14,450 $4,169.99 plus 35% -$14,450
Married Person
Taxable Income* Amount of Income Tax Withheld is: 
Not over $529 0
Over- But not over - Of excess over -
$529 -$942 10% -$529
$942 -$2,913 $41.30 plus 15% -$942
$2,913 -$3,617 $336.95 plus 25% -$2,913
$3,617 -$4,771 $512.95 plus 27% -$3,617
$4,771 -$5,579 $824.53 plus 25% -$4,771
$5,579 -$8,346 $1,026.53 plus 28% -$5,579
$8,346 -$14,669 $1,801.29 plus 33% -$8,346
$14,669 $3,887.88 plus 35% -$14,669

 

* Taxable income is biweekly gross pay less tax sheltered and/or pre-tax deductions and the dollar amount of biweekly withholding allowances.


Note:

  • Inflation adjustments have increased the above Tax Bracket thresholds for each filing status.
  • Use of these tables to compute estimated tax withholdings will result in amounts that differ slightly (by a few cents) from the precise amounts computed by the Statewide Payroll System.

 

2010 Federal Income Tax Withholding Information

 MONTHLY PAYROLL PERIOD

 Single Person - Including Head of Household  
Taxable Income# Amount of Income Tax Withheld is:
 Not over $504    0
     
 Over -  But not over -   Of excess over -
$504  -$869  10% -$504
$869  -$3,004  $36.50 plus 15% -$869
$3,004  -$5,642  $356.75 plus 25% -$3,004
$5,642  -$7,038  $1,016.25 plus 27% -$5,642
$7,038  -$7,308  $1,393.17 plus 30% -$7,038
$7,308  -$14,492  $1,474.17 plus 28% -$7,308
$14,492 -$31,308 $3,485.69 plus 33% -$14,492
$31,308 $9,034.97 plus 35% -$31,308
Married Person
Taxable Income# Amount of Income Tax Withheld is: 
Not over $1,146 0
Over- But not over - Of excess over -
$1,146 -$2,042 10% -$1,146
$2,042 -$6,313 $89.60 plus 15% -$2,042
$6,313 -$7,838 $730.25 plus 25% -$6,313
$7,838 -$10,338 $1,111.50 plus 27% -$7,838
$10,338 -$12,088 $1,786.50 plus 25% -$10,838
$12,088 -$18,083 $2,224.00 plus 28% -$12,088
$18,083 -$31,783 $3,902.60 plus 33% -$18,083
$31,783 $8,423.60 plus 35% -$31,783

 

# Taxable income is monthly gross pay less tax sheltered and/or pre-tax deductions and the dollar amount of monthly withholding allowances.


Note:

  • Use of these tables to compute estimated tax withholdings will result in amounts that differ slightly (by a few cents) from the precise amounts computed by the Statewide Payroll System.

Examples of Withholding Calculations using the Percentage Method

Example 1

A married employee is paid $1,356.09 bi-weekly.  This employee has in effect a Form W-4 claiming (0) withholding allowances.  The employee also has a deferred comp deduction. Using the percentage method, figure the income tax to withhold as follows:

 Total wage payment    $1,356.09
 No allowances claimed on W-4  $0.00  
 Deferred compensation deduction  $60.00  
 Amount subject to withholding (subtract lines 2 & 3 from line 1)    $1,296.09

Compute the withholding amount using the tax tables for Percentage Method of Withholding, BIWEEKLY Payroll Period, for a married person.

Since $1,296.09 falls within the range of $942 - $2,913, use the following calculation:

$41.30 plus 15% of the amount over $942. 

The amount over $942 is $354.09 ($1,296.09 - $942.00)

15% of $354.09 is $53.11 ($354.09 X .15)

So the federal tax to be withheld would be $41.30 + $53.11 or $94.41.

Example 2

An unmarried employee is paid $4,000.00 monthly.  This employee has in effect a Form W-4 claiming (2) withholding allowances.  Using the percentage method, figure the income tax to withhold as follows:

 Total wage payment    $4,000.00
 2 allowances claimed on W-4  $608.34  (amount determined by allowance table)
 Deferred compensation deduction  $0.00  
 Amount subject to withholding    $3,391.66

Compute the withholding amount using the tax tables for Percentage Method of Withholding, MONTHLY Payroll Period, for an unmarried person.

Since $3,391.66 falls within the range of $3,004 - $5,642, use the following calculation:

$356.75 plus 25% of the amount over $3,004

The amount over $3,004 is $387.66 ($3,391.66 - $3,004.00)

25% of $387.66 is $96.92 ($387.66 X .25)

So the federal tax to be withheld would be $356.75 + $96.92 or $453.67.



Income Tax changes
Maryland County Income Tax Withholding for 2009
Federal Income Tax Table Information
State Withholding Tax Changes for 2009