Maryland law provides that the Comptroller prepare a percentage income tax withholding method that indicates the percent of State income tax to be withheld from wages. The percentage used is relative to median local tax rates of Maryland's 23 counties and Baltimore City.
Withholding is a combination of the State income tax, which has rates graduated per taxable income, (see chart below) and local taxes. This combined tax appears under the heading of STATE TAX on all payroll documents, including the Employee's Earnings Statement (pay stub) that is attached to all payroll checks and deposit advices.
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Taxpayers Filing Joint,
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All Other
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Surviving Spouse or Head of Household Returns
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Individual Taxpayers
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Taxable Income
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Tax Rate
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Taxable Income
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Tax Rate
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| $1 - $1,000 |
2.00 percent |
$1 - $1,000 |
2.00 percent |
| $1,001 - $2,000 |
3.00 percent |
$1,001 - $2,000 |
3.00 percent |
| $2,001 - $3,000 |
4.00 percent |
$2,001 - $3,000 |
4.00 percent |
| $3,001 - $200,000 |
4.75 percent |
$3,001 - $150,000 |
4.75 percent |
| $200,001 - $350,000 |
5.00 percent |
$150,001 - $300,000 |
5.00 percent |
| $350,001 - $500,000 |
5.25 percent |
$300,001 - $500,000 |
5.25 percent |
| In excess of $500,000 |
5.50 percent |
In excess of $500,000 |
5.50 percent |
Beginning with calendar year 2008, the State of Maryland added a selection to filing status for tax withholding. You can choose Single, Head of Household (married or unmarried), or Married status but withhold at the Single rate on the W4/MW507 withholding form. The tax rate is the same for all categories until you reach $150,000 in yearly income for a single filer. Employees expecting to make more than $150,000 in 2009 and who can file as Married or Head of Household should ensure a proper W4-MW507 form is in place for Maryland taxes.
The county of residence, which determines the rate of the local withholding portion is the county submitted on the Employee Withholding Allowance Certificate, IRS Form W-4/Comptroller Form MW 507. The two position alphabetic code in the box “County Code” on the Employee’s Earnings Statement (pay stub) is the county recorded in the individual’s pay record. Employees that do not submit a withholding certificate are defaulted to the highest rate of local tax, which for the year 2011 will be 3.20%.
Baltimore City has increased its tax rate to 3.20% for 2011.
The Maryland state tax rate for nonresidents who are subject to Maryland state income tax, but who are not subject to Maryland local income tax is 6.00%. |
