How to Calculate 2016 Maryland State Income Tax by Using State Income Tax Table
1. Find your income exemptions
2. Find your pretax deductions, including 401K, flexible account contributions ...
3. Find your gross income
4. Check the 2016 Maryland state tax rate and the rules to calculate state income tax
5. Calculate your state income tax step by step
6. If you want to simplify payroll tax calculations, you can download
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Tax rate used in calculating Maryland state tax for year 2016
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 Exemptions
TSP Deferred:
Yes
Special Coding:
Determine the Total Number Of Allowances field as follows:
First Position - >S = Single; M = Married.<
Second and Third Positions - Enter the number of exemptions claimed.
Additional Information:
The Maryland state income tax formula contains a computation for Maryland county tax. Residents of the state of Maryland are required to pay the appropriate county tax in addition to the state income tax. Nonresidents of Maryland pay only the state income tax. Refer to the withholding formula for information on the individual county rates.
Need a Better Way to Calculate Maryland State Income Tax Withholdings?
Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.1
1 If gross annual 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 annual wages computed in step 4.
Standard Deduction2 = 15 percent x Annual Wages
2 Minimum of $1,500/Maximum of $2,000
Determine the dependent allowance by applying the following guideline and subtract this amount from the result of step 5 to determine the taxable income.
Exemption Allowance = $3,200 x Number of Exemptions
Apply the taxable income computed in step 6 to the following table to determine the annual Maryland tax withholding.
Maryland Nonresidents Not Subject to
Maryland County Tax
Married
If the Amount of
Taxable Income Is:
The Amount of Maryland
Tax Withholding Should Be:
Over:
But Not
Over:
Of Excess
Over:
$ 0
$ 150,000
$ 0
plus
6.00%
$ 0
150,000
175,000
9,000
plus
6.25%
150,000
175,000
225,000
10,562.5
plus
6.50%
175,000
225,000
300,000
13,812.5
plus
6.75%
225,000
300,000
>and over
18,875
plus
7.00%
300,000
Single
If the Amount of
Taxable Income Is:
The Amount of Maryland
Tax Withholding Should Be:
Over:
But Not
Over:
Of Excess
Over:
$ 0
$ 100,000
$ 0
plus
6.00%
$ 0
100,000
125,000
6,000
plus
6.25%
100,000
125,000
150,000
7,562.5
plus
6.50%
125,000
150,000
250,000
9,187.5
plus
6.75%
150,000
250,000
> and over
15,937.5
plus
7.00%
250,000
All Other Employees
Married
If the Amount of
Taxable Income Is:
The Amount of Maryland
Tax Withholding Should Be:
Over:
But Not
Over:
Of Excess
Over:
$ 0
$ 150,000
$ 0
plus
4.75%
$ 0
150,000
175,000
7,125
plus
5.00%
150,000
175,000
225,000
8,375
plus
5.25%
170,000
225,000
250,000
11,000
plus
5.50%
225,000
250,000
>and over
15,125
plus
5.75%
250,000
Single
If the Amount of
Taxable Income Is:
The Amount of Maryland
Tax Withholding Should Be:
Over:
But Not
Over:
Of Excess
Over:
$ 0
$ 100,000
$ 0
plus
4.75%
$ 0
100,000
125,000
4,750
plus
5.00%
100,000
125,000
150,000
6,000
plus
5.25%
125,000
150,000
250,000
7,312.5
plus
5.5%
150,000
250,000
> and over
12,812.5
plus
5.75%
250,000
Divide the result of step 7 by 26 to obtain the biweekly Maryland state tax. Residents of Maryland are to proceed to step 9 to compute Maryland county tax.
If the employee is a resident of the state of Maryland, compute the annual county tax withholding as follows:
a. Repeat steps 1 through 5.
b. 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 = $3,200x Number of Exemptions
c. 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 Annual
Taxable Wages By:
Allegany
3.05%
Anne Arundel
2.56%
Baltimore City
3.20%
Baltimore
2.83%
Calvert
2.80%
Caroline
2.73%
Carroll
3.03%
Cecil
2.80%
Charles
3.03%
Dorchester
2.62%
Frederick
2.96%
Garrett
2.65%
Harford
3.06%
Howard
3.20%
Kent
2.85%
Montgomery
3.20%
Prince George's
>3.20%<
Queen Anne's
3.2%
St. Mary's
3.00%
Somerset
3.15%
Talbot
2.40%
Washington
2.80%
Wicomico
3.20%
Worcester
1.25%
d. Divide the result of step 9c by 26 to obtain the biweekly Maryland county tax.
e. Add the results of steps 8 and 9d to determine the resident's biweekly Maryland state and county tax combined withholding.
in house payroll tax solution for Maryland small businesses here.
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