2026 Tax Tables

Maryland Payroll Withholding Calculator (2026)

Maryland uses a graduated state income tax that, after 2025 legislation, tops out at 6.5% with new high-income brackets. This calculator computes the state portion: it subtracts a flat $3,400 standard deduction and $3,200 per MW507 exemption, then applies Schedule I (single) or Schedule II (married / head of household). Every Maryland employee also owes a county “piggyback” local income tax of 2.25%–3.30%, which is shown as an advisory and must be added separately.

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State Tax Rate

Up to 6.5% + local

State W-4 Form

Form MW507

Tax Year

2026

Key Facts

  • Graduated state rates up to 6.5% for 2026 (two new high-income brackets added in 2025)
  • Flat $3,400 standard deduction; $3,200 per MW507 exemption
  • Schedule I for single / MFS, Schedule II for married / head of household
  • County local income tax (2.25%–3.30%) applies to every employee and is NOT included here

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Maryland Withholding — Frequently Asked Questions

What is the top Maryland income tax rate for 2026?

After 2025 legislation, Maryland’s top state rate is 6.5%, reached through new high-income brackets above the former 5.75% top rate. Most employees fall in the 4.75% bracket.

Does this calculator include Maryland county tax?

No. It computes the state portion only. Every Maryland employee also owes a county local income tax of 2.25%–3.30% based on county of residence, which must be added separately.

What deduction and exemption does Maryland withholding use?

For 2026 the withholding standard deduction is a flat $3,400, and each exemption claimed on Form MW507 is worth $3,200.

What form do Maryland employees use?

Employees complete Form MW507 to claim exemptions for Maryland withholding.