Why does Maryland take-home pay include a county tax?

Maryland is one of the few states where every county and Baltimore City levy a local income tax on top of the state tax. It is a flat percentage of your Maryland taxable income, from 2.25% in Worcester County to 3.20% in Montgomery, Baltimore City, Prince George's, and others. This local tax is withheld from your paycheck alongside the state tax, so it must be included to get accurate take-home pay.

What is Maryland's state income tax rate?

Maryland uses graduated brackets from 2% on the first $1,000 of taxable income up to 5.75% on income above $250,000 (single) or $300,000 (joint). Most workers fall in the 4.75% bracket. The state also gives a standard deduction equal to 15% of Maryland AGI, capped at $2,700 single or $5,450 joint in 2025.

Does Maryland have a state disability insurance deduction?

No. Maryland has no state disability insurance (SDI) deduction, unlike California or New York. The deductions on a Maryland paycheck are federal income tax, FICA (Social Security and Medicare), Maryland state income tax, and your county's local income tax.

How do pre-tax deductions change my Maryland paycheck?

Pre-tax contributions like 401(k), HSA, and employer health premiums lower the wages subject to federal, state, and local income tax (though most still count for Social Security and Medicare). Entering them in the calculator reduces your income tax and increases your net take-home pay accordingly.

Is this paycheck estimate exact?

No, it is a close planning estimate. It uses 2025 FICA rates, federal brackets and standard deduction, Maryland's graduated state brackets with the maximum standard deduction, and your county's flat local rate. It excludes personal exemptions, tax credits, and the additional 0.9% Medicare surtax. For an exact figure, check your pay stub or a tax professional.

Maryland Paycheck Calculator — Take-Home Pay 2025

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This calculator estimates your real Maryland take-home pay from a gross salary, accounting for the one deduction most paycheck tools forget: the county local income tax. Every Maryland resident pays both a state income tax and a flat county tax, so your net pay depends heavily on where you live.

How it works

The calculator subtracts each tax from your gross salary in order:

FICA — 6.2% Social Security up to the $176,100 (2025) wage base, plus 1.45% Medicare on all wages.
Federal income tax — 2025 brackets on income after the federal standard deduction.
Maryland state income tax — graduated 2%–5.75% brackets on Maryland taxable income (gross minus the Maryland standard deduction).
Maryland local income tax — a flat county rate, from 2.25% (Worcester) to 3.20% (Montgomery, Baltimore City, Prince George’s, and others), applied to your Maryland taxable income.

Net take-home = Gross − pre-tax − FICA − Federal tax − Maryland state tax − County tax

Why the county matters

The county local tax is large — often bigger than the difference between two states’ income taxes. Living in Worcester County (2.25%) versus Montgomery County (3.20%) changes your withholding by nearly a full percentage point of taxable income, which can be hundreds of dollars a year. The calculator includes all 23 counties plus Baltimore City so you can compare.

Worked example

A worker earning $70,000, filing single, in Montgomery County (3.20% local):

FICA ≈ $5,355
Federal income tax (after $15,000 standard deduction) ≈ $6,600
Maryland state tax (after standard deduction) ≈ $3,100
Montgomery local tax ≈ 3.20% × taxable ≈ $2,150
Net take-home ≈ $52,800 per year ≈ $2,030 bi-weekly

Note: Figures are estimates that assume the standard deduction and no exemptions or credits. Add 401(k)/HSA contributions in the pre-tax field for a closer result, and confirm with marylandtaxes.gov or your pay stub.