Maryland State and Counties Income Tax Withholding
Reference Number: NFC-24-1707936088
Published: March 7, 2024
Effective: Pay Period 2, 2024
Summary
The state and local income tax withholding formula for Maryland has changed to include the following changes:
- The tax table for Anne Arundel County has changed, and there are now two tables based on marital status.
- The tax tables for Frederick County have changed for Single and Married filers.
The standard deduction amounts for the State of Maryland, have changed as follows:
- The minimum Standard Deduction has changed from $1,700 to $1,800.
- The maximum Standard Deduction has changed from $2,550 to $2,700.
The income tax rate on Cecil County has changed:
- Cecil from 2.80 percent to 2.75 percent.
All other information remains the same.
No action on the part of the employee or the personnel office is necessary.
Tax Formula 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 Allowances |
|
TSP Deferred: |
Yes |
|
Special Coding: |
Determine the Total Number of Allowances claimed field as follows:
|
|
The Maryland State income tax formula contains a computation for Maryland County tax. Refer to the withholding formula for information on the individual county rates. In the event an employee does not file a State withholding exemption certificate, then Single and zero (00) exemptions will be used as the basis for withholding. |
Withholding Formula (Effective Pay Period 02, 2024)
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Employees Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account — health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the annual wages.1
1 If gross annualized wages are less than $5,000, taxes will not be withheld. - Determine the standard deduction by applying the following guideline and subtract this amount from the gross annualized wages computed in step 4:
Standard Deduction2 = 15 percent x Annualized Wages
2 Minimum of $1,800/Maximum of $2,700 - Determine the dependent allowance by applying the following guideline and subtract this amount from the result of step 5 to determine the taxable income:
Multiply the number of Exemptions by $3,200. - Apply the taxable income computed in step 6 to the following table to determine the annual Maryland tax withholding:
Married
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
|
Over $0 but not over $150,000 |
$0.00 plus 4.75% over $0.00 |
|
Over $150,000 but not over $175,000 |
$7,125.00 plus 5.00% over $150,000.00 |
|
Over $175,000 but not over $225,000 |
$8,375 plus 5.25% over $175,000.00 |
|
Over $225,000 but not over $300,000 |
$11,000.00 plus 5.50% over $225,000.00 |
|
Over $300,000 |
$15,125.00 plus 5.75% over $300,000.00 |
Single
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
|
Over $0 but not over $100,000 |
$0.00 plus 4.75% over $0.00 |
|
Over $100,000 but not over $125,000 |
$4,750.00 plus 5.00% of excess over $100,000.00 |
|
Over $125,000 but not over $150,000 |
$6,000.00 plus 5.25% of excess over $125,000.00 |
|
Over $150,000 but not over $250,000 |
$7,312.50 plus 5.50% of excess over $150,000.00 |
|
Over $250,000 |
$12,812.50 plus 5.75% of excess over $250,000.00 |
- Divide the result of step 7 by the number of pay dates in the tax year to obtain the biweekly Maryland State tax. Proceed to step 9 to compute Maryland county tax.
- Compute the annual county tax withholding as follows:
- Repeat steps 1 through 5.
- 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
- 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 Annualized Taxable Wage By: |
|
Allegany |
3.03% |
|
Anne Arundel |
* Refer to table below. |
|
Baltimore |
3.20% |
|
Baltimore City |
3.20% |
|
Calvert |
3.00% |
|
Caroline |
3.20% |
|
Carroll |
3.03% |
|
Cecil |
2.75% |
|
Charles |
3.03% |
|
Dorchester |
3.20% |
|
Frederick |
* Refer to table below. |
|
Garrett |
2.65% |
|
Harford |
3.06% |
|
Howard |
3.20% |
|
Kent |
3.20% |
|
Montgomery |
3.20% |
|
Prince George's |
3.20% |
|
Queen Anne's |
3.20% |
|
St. Mary's |
3.00% |
|
Somerset |
3.20% |
|
Talbot |
2.40% |
|
Washington |
2.95% |
|
Wicomico |
3.20% |
|
Worcester |
2.25% |
Anne Arundel Graduated Tax Table
Single Taxpayer Table
|
If Annualized Taxable Wages Are: |
The Amount of Tax Withholding Should Be: |
|
Over $0 but not over $50,000 |
Annualized Wages x 2.70% |
|
Over $50,000 and up to $400,000 |
$1,350 + ((Annualized Wages - $50,000) x 2.81%) |
| Over $400,000 | $11,185 + ((Annualized Wages - $400,000) x 3.20%) |
Married Taxpayer Table
|
If Annualized Taxable Wages Are: |
The Amount of Tax Withholding Should Be: |
|
$75,000 or less |
Annualized Wages x 2.70% |
|
Over $75,000 and up to $480,000 |
$2,025 + ((Annualized Wages - $75,000) x 2.81%) |
| Over $480,000 | $13,405.50 + ((Annualized Wages - $480,000) x 3.20%) |
Frederick Fixed Rate Tax Table
|
If Marital Status Is: |
And the Annualized Taxable Wages Are: |
Then Multiply the Annualized Wages By: |
|
Single |
$25,000 or less | 2.25% |
|
Single |
Over $25,000 and up to $50,000 | 2.75% |
|
Single |
Over $50,000 and up to $150,000 | 2.96% |
|
Single |
Over $150,000 | 3.20% |
|
Married |
$25,000 or less |
2.25% |
|
Married |
Over $25,000 and up to $100,000 |
2.75% |
|
Married |
Over $100,000 and up to $250,000 | 2.96% |
|
Married |
Over $250,000 | 3.20% |
- Divide the result of step 9c by the number of pay dates in the tax year to obtain the biweekly Maryland county tax.
- Add the results of steps 8 and 9d to determine the biweekly Maryland State and county tax combined withholding.
Resources
To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) Home page. Select the Publications tab and select Taxes from the Publications Library section to launch the tax map. Select the desired State from the map provided for the formula.
Inquiries
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