December, 17th 2025
Each state has unique income tax withholding rules. Below are Maryland's 2026 withholding instructions, including allowance calculations, standard deduction adjustments, and the percentage method for determining tax due.
Employers must also adhere to federal income tax withholding rules. More information can be found here about federal rates .
Alternatively, employers can automatically calculate payroll withholding by using ezPaycheck.
| 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. |
| Official State Tax Website | Visit Official Website |
Maryland's MW-507 is allowance-based. A taxpayer can claim an allowance for each personal exemption they expect on their MD return: 1 for themselves (unless claimed by someone else) and 1 for a spouse (if filing jointly and spouse not separately claimed). 1 allowance is given per dependent. Maryland does allow extra allowances for age and disability on the tax return (the personal exemption amount is higher for 65+ or blind), but on the withholding form these are not separately listed as extra numerical allowances - instead, the higher exemption for seniors is handled in the tables.
| Component | Allowances | Notes |
|---|---|---|
| Yourself | 1 allowance | Unless claimed by someone else |
| Spouse | 1 allowance | If filing jointly and spouse not separately claimed |
| Each Dependent | 1 allowance | Per dependent |
Total Allowances = Yourself + Spouse + Dependents
For example: a married couple with two children would claim 4 allowances. The higher exemption for seniors (65+ or blind) is handled in the tax tables, not as separate numerical allowances on the MW-507 form.
For links to official state tax and revenue websites for all 50 states, visit our State and Local Tax Sites page.
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. Note: If gross annual wages are less than $5,000, taxes will not be withheld.
Determine the personal exemption by applying the following guidelines and subtract this amount from the gross annual wages to compute the taxable income. The personal exemption amount varies based on filing status and annual wages (see exemption tables).
Apply the taxable income computed in step 5 to the tax withholding table (Single or Married) to determine the annual Maryland state tax withholding.
Calculate the Maryland county tax withholding based on the appropriate county rate (residents only).
Add the state tax and county tax to obtain the total annual Maryland tax withholding.
Divide the annual Maryland tax withholding by 26 to obtain the biweekly Maryland tax withholding.
Want to calculate in an easier way? Learn how to calculate Maryland taxes via ezPaycheck below.
Learn More| Withholding Allowance | Annual Amount |
|---|---|
| 1 | $12,000 |
Formula: Personal exemption varies based on annual wages (see exemption tables in calculation steps).
Maryland uses complex personal exemption tables where the exemption amount varies based on annual wages. For Option A (Married - Filing Separately or Married - Filing Jointly, Both Spouses Working): $12,000 if wages ≤ $24,000; $11,000 if wages $24,001-$25,000; $10,000 if wages $25,001-$26,000; $9,000 if wages $26,001-$27,000; $8,000 if wages $27,001-$28,000; $7,000 if wages $28,001-$29,000; $6,000 if wages $29,001-$30,000; $5,000 if wages $30,001-$31,000; $4,000 if wages $31,001-$32,000; $3,000 if wages $32,001-$33,000; $2,000 if wages $33,001-$34,000; $1,000 if wages $34,001-$35,000; $0 if wages > $35,000.
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $1,000 | $0 | + | 2.00% | $0 |
| $1,000 | $2,000 | $20 | + | 3.00% | $1,000 |
| $2,000 | $3,000 | $50 | + | 4.00% | $2,000 |
| $3,000 | $100,000 | $90 | + | 4.75% | $3,000 |
| $100,000 | $125,000 | $4,703 | + | 5.00% | $100,000 |
| $125,000 | $150,000 | $5,953 | + | 5.25% | $125,000 |
| $150,000 | $250,000 | $7,265 | + | 5.50% | $150,000 |
| $250,000 | and over | $12,265 | + | 5.75% | $250,000 |
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $1,000 | $0 | + | 2.00% | $0 |
| $1,000 | $2,000 | $20 | + | 3.00% | $1,000 |
| $2,000 | $3,000 | $50 | + | 4.00% | $2,000 |
| $3,000 | $150,000 | $90 | + | 4.75% | $3,000 |
| $150,000 | $175,000 | $7,078 | + | 5.00% | $150,000 |
| $175,000 | $225,000 | $8,328 | + | 5.25% | $175,000 |
| $225,000 | $300,000 | $10,953 | + | 5.50% | $225,000 |
| $300,000 | and over | $15,078 | + | 5.75% | $300,000 |
ezPaycheck simplifies payroll calculations, including Maryland's withholding rules. Easily compute taxes, generate reports, and print paychecks or tax forms.
We strive to provide accurate and up-to-date Maryland state tax information for 2026. If you notice any discrepancies, errors, or have questions about the tax rates or calculations shown on this page, please contact our support team. We appreciate your feedback and will review and update the information as needed.
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