Maryland Salary Calculator
The Maryland Salary Calculator helps employees and employers estimate net pay after federal and state taxes, including Maryland-specific deductions. It assists in financial planning and understanding paycheck deductions.
FAQs
1. What taxes are deducted in Maryland?
Maryland deducts federal income tax (10-37%), Social Security (6.2%), Medicare (1.45%), state income tax (2-5.75%), and local county taxes (2.25-3.2%). Some jurisdictions have additional taxes.
2. How is Maryland state tax calculated?
Maryland uses progressive tax brackets from 2% to 5.75% for incomes above $3,000. Local county taxes (2.25-3.2%) are added to state tax.
3. Does Maryland tax overtime pay?
Yes, Maryland taxes overtime pay as regular income. Overtime earnings are included in gross income calculations for all tax deductions.
4. Are bonuses taxed differently in Maryland?
Bonuses are taxed as supplemental income. Maryland withholds 8.95% for state taxes and federal withholding is 22% for amounts over $1 million.
5. What's the Maryland minimum wage?
As of 2024, Maryland's minimum wage is $15/hour for most employers. Some small businesses (under 15 employees) may pay $13.25/hour until 2026.
6. How often are Maryland pay periods?
Maryland requires at least bi-weekly (every 2 weeks) pay periods for most employees. Exempt employees can be paid monthly.
7. Are retirement contributions taxed?
401(k) and IRA contributions are exempt from Maryland state taxes but subject to federal taxes. Roth contributions are taxed upfront.
8. What's the standard deduction?
Maryland offers a standard deduction of $2,550 for single filers and $5,100 for joint filers. Additional deductions for dependents may apply.
9. How to calculate part-time salary?
Multiply hourly wage by hours worked per week, then by 52 weeks. Subtract 15-25% for taxes depending on income bracket and deductions.
10. Are tips taxable in Maryland?
Yes, tips are considered taxable income. Employees must report tips exceeding $20/month, subject to all standard tax deductions.