Maryland Paycheck Calculator
Use this calculator to estimate your net take-home pay in Maryland after federal, state, and local taxes, as well as common deductions.
Federal Withholding
Maryland State Withholding
Local (County) Tax
Deductions
Understanding Your Maryland Paycheck
Navigating your paycheck can sometimes feel like deciphering a complex code. In Maryland, your take-home pay is influenced by a combination of federal, state, and local taxes, as well as any pre-tax and post-tax deductions you might have. This guide will help you understand the various components that make up your Maryland paycheck.
Gross Pay
Your gross pay is the total amount of money you earn before any taxes or deductions are taken out. This is typically calculated based on your hourly wage or annual salary and your pay frequency (e.g., weekly, bi-weekly, semi-monthly, or monthly).
Federal Taxes
These are taxes levied by the U.S. government and include:
- Federal Income Tax: This is a progressive tax, meaning higher earners pay a larger percentage of their income. The amount withheld depends on your gross income, filing status (single, married filing jointly, etc.), and the number of allowances/dependents you claim on your W-4 form.
- Social Security Tax (FICA): This funds retirement, disability, and survivor benefits. Employees typically pay 6.2% of their gross wages up to an annual limit (which changes yearly). For 2024, the wage base limit is $168,600.
- Medicare Tax (FICA): This funds hospital insurance for the elderly and disabled. Employees typically pay 1.45% of all their gross wages, with no income limit.
Maryland State Income Tax
Maryland imposes its own state income tax, which is also progressive. The rates vary based on your taxable income and filing status. Similar to federal taxes, the amount withheld depends on your gross income, filing status, and the number of allowances/dependents you claim on your Maryland Form MW507.
Maryland Local (County) Income Tax
Unique to Maryland, most counties (and Baltimore City) levy a local income tax, often referred to as "piggyback tax." This tax is a percentage of your state taxable income and is collected by the state, then distributed to the counties. Rates vary significantly by county, ranging from 2.25% to 3.20%.
Deductions
Deductions are amounts subtracted from your gross pay. They can be categorized as:
- Pre-Tax Deductions: These are taken out of your pay before taxes are calculated, thereby reducing your taxable income for federal, state, and local income taxes. Common examples include contributions to a 401(k) or 403(b) retirement plan, health insurance premiums, and Flexible Spending Account (FSA) contributions. Note that pre-tax deductions generally do not reduce income for Social Security and Medicare taxes.
- Post-Tax Deductions: These are taken out after all applicable taxes have been calculated. Examples include Roth 401(k) contributions, union dues, garnishments, or certain types of life insurance premiums.
How the Calculator Works
Our Maryland Paycheck Calculator takes your gross pay, pay frequency, filing statuses, allowances, and any deductions into account to estimate your net pay. It applies current federal, state, and local tax rates and limits to provide a realistic estimate of your take-home earnings. Please note that this calculator provides estimates and should not be considered tax advice.
Example Calculation:
Let's consider an example with the default values:
- Gross Pay per Pay Period: $2,000 (Bi-Weekly)
- Pay Frequency: Bi-Weekly (26 pay periods/year)
- Federal Filing Status: Single, 2 Allowances
- Maryland Filing Status: Single, 2 Allowances
- Maryland County Tax Rate: 3.20%
- Pre-Tax Deductions: $150 per pay period (e.g., 401k, health insurance)
- Post-Tax Deductions: $50 per pay period (e.g., Roth 401k)
Based on these inputs, the calculator would perform the following steps (simplified, using 2024 approximate values):
- Calculate Annual Gross Pay: $2,000 * 26 = $52,000
- Calculate Annual Pre-Tax Deductions: $150 * 26 = $3,900
- Calculate Social Security Tax: 6.2% of $2,000 (gross pay) = $124.00 per pay period. (Annual: $3,224.00)
- Calculate Medicare Tax: 1.45% of $2,000 (gross pay) = $29.00 per pay period. (Annual: $754.00)
- Calculate Federal Taxable Income: $52,000 (Annual Gross) – $3,900 (Annual Pre-Tax Deductions) – ($4,700 * 2 Federal Allowances) = $38,700. Federal income tax would then be calculated based on this amount and the single tax brackets. (Approx. $4,300.00 annually, or $165.38 per period)
- Calculate Maryland State Taxable Income: $52,000 (Annual Gross) – $3,900 (Annual Pre-Tax Deductions) – ($3,200 * 2 State Allowances) = $41,900. Maryland state income tax would be calculated based on this amount and the state tax brackets. (Approx. $2,095.00 annually, or $80.58 per period)
- Calculate Maryland County Tax: 3.20% of Maryland State Taxable Income ($41,900) = $1,340.80 annually, or $51.57 per period.
- Sum all taxes and deductions per pay period: $165.38 (Fed Inc) + $124.00 (SS) + $29.00 (Med) + $80.58 (MD State) + $51.57 (MD County) + $150.00 (Pre-Tax) + $50.00 (Post-Tax) = $650.53
- Subtract total taxes and deductions from Gross Pay per Pay Period to get Net Pay: $2,000 – $650.53 = $1,349.47
This example demonstrates how various factors contribute to your final take-home pay. Remember that this calculator provides estimates, and actual withholdings may vary slightly based on specific payroll system calculations and any changes in tax laws.