Maryland paycheck tax deductions for 2025 include state income tax, which follows a graduated rate system with rates ranging approximately from 2% to 6.5% depending on the income bracket. The state's top individual income tax rate increased from 5.75% to 6.5% for the highest earners. Maryland also changed its standard deduction to a flat amount of $3,350 for the tax year 2025. Besides state income tax, federal income tax, Social Security, and Medicare taxes also reduce the paycheck. The specific amount deducted depends on gross income, filing status, exemptions, allowances, and other payroll deductions (like health benefits or retirement contributions). For example, Maryland taxes 2% on the first $1,000 of taxable income, gradually increasing to 5.75% (or 6.5% for top earners) on higher amounts. Local county taxes may also apply as Maryland has local income taxes withheld. A rough example: If earning $55,000 annually in Maryland, total taxes might be around 21% of income, with a net pay around $43,426 after deductions, meaning about 21% of the paycheck is deducted on average for taxes, with marginal tax rates reaching 34.4% on additional income earned at that level. In summary, Maryland paycheck tax deductions include:
- State income tax at graduated rates (2% to 6.5%)
- Federal income tax withholding based on W-4 info
- Social Security and Medicare taxes (FICA)
- Local county income taxes
- Standard deduction of $3,350 (flat for 2025)
- Other payroll deductions affecting taxable income
The total deducted varies by income, filing status, exemptions, and additional deductions.
