Maryland MW507 & Withholding Calculator 2026

Maryland withholding combines state and local income tax. Employers use the Comptroller's tables or percentage method for your county of residence: take pay for the period, subtract a standard deduction allowance ($3,400 a year in the 2026 tables) and $3,200 for each exemption on your MW507, then apply a combined state-plus-county rate. Withholding is figured without the state's lowest 2%, 3% and 4% bands, so it starts at 4.75% plus your county rate.

For example, in a county with a 3.20% rate, a single employee earning $65,000 with one exemption has ($65,000 − $3,400 − $3,200) × 7.95% = about $4,643 withheld for the year, or about $179 per biweekly paycheck. County rates range from 2.25% to 3.30% for 2026 (for example Worcester County 2.25%, Montgomery and Baltimore City 3.20%, Kent County 3.30%).

Maryland's state income tax on the return runs from 2.00% on the first $1,000 up to 6.50% above $1 million for single filers ($1.2 million for joint filers, heads of household and surviving spouses). The new 6.25% and 6.50% brackets apply to high incomes. Each of Maryland's 23 counties and Baltimore City also levies a local income tax based on where you live, not where you work, which you pay on the same state return.

On the MW507 you enter your county of residence (nonresidents enter the Maryland county where they work) and check Single, Married (which includes surviving spouse and unmarried head of household rate), or Married but withhold at Single rate. Line 1 is the number of personal exemptions you will claim on your return. If your adjusted gross income will be over $100,000 (single or married filing separately) or $150,000 (joint or head of household), or you want to claim more exemptions or adjust for itemized deductions, you must complete the Personal Exemption Worksheet on page 2. Line 2 is additional withholding per pay period under agreement with your employer. You may claim fewer, or zero, exemptions.

Enter EXEMPT on Line 3 if you did not owe any Maryland income tax last year and had a right to a full refund of tax withheld, and you do not expect to owe any this year and expect a full refund. That includes seasonal and student employees whose annual income will be below the filing minimum. Other lines cover domiciliaries of the District of Columbia, Virginia, West Virginia and Pennsylvania who maintain no Maryland place of abode, and military spouses under the Military Spouses Residency Relief Act.