Maryland Maryland Employer Withholding Guide

Maryland Employer Withholding Guide
TY 2023 Withholding Guide
MARYLAND EMPLOYER
WITHHOLDING GUIDE

This guide is effective January 2023 and includes local income tax rates. These
rates were current at the time this guide was developed. The Maryland
Legislature may change this tax rate when in session. During this time, please
check our Web site at www.marylandtaxes.gov for any changes.
Revised March 2023

Comptroller of Maryland
110 Carroll Street
Annapolis, MD 21411
Call 410-260-7980 from Central Maryland, or,
800-638-2937 from elsewhere

www.marylandtaxes.gov
Brooke E. Lierman
Comptroller

How to use this Employer Withholding Guide
The instructions in this guide will provide you with the
information you need to comply with the requirements for
withholding Maryland income tax as required by law.
These instructions include the percentage formulas to
determine the amount of income tax to withhold from
­
employees’ wages.
The withholding regular tables are not located in this
guide. They can be found at www.marylandtaxes.gov or
if you do not have access to the Internet, please call the
forms line at 410-260-7951.

We hope this guide will provide you with all the information
you need. However, if you need a
­dditional assistance,
please feel free to contact us:

Comptroller of Maryland
Revenue Administration Division
110 Carroll Street
Annapolis, Maryland 21411-0001
410-260-7980
800-638-2937
www.marylandtaxes.gov

Maryland Employer Withholding Forms
MW506	

Employer’s Return of Income Tax Withheld

MW506A	Employer’s Return of Income Tax Withheld Amended
MW506AM	Employer's Return of Income Tax Withheld for
Accelerated Filers - Amended
MW506M	Employer's Return of Income Tax Withheld for
Accelerated Filers
MW507	Employee's Maryland Withholding Exemption
Certificate
MW507M	Exemption from Maryland Withholding Tax for
a Qualified Civilian Spouse of a U.S. Armed
Forces Servicemember

MW507P	Annuity, Sick Pay and Retirement Distribution
Request for Maryland Income Tax Withholding
MW508	Annual Employer Withholding Reconciliation
Return
MW508A	Annual Employer Withholding Reconciliation
Return - Amended
MW508CR	Business Income Tax Credits - To be used by
non-profit 501(c)(3) organizations only.
548P	Limited Power of Attorney and Maryland
Reporting Agents Authorization - to be used by
reporting agents to secure information about
withholding and sales & use tax returns or
payments sent to the Comptroller of Maryland.
It is used in place of the federal Form 8655.

Reminders
•	The standard deduction rates have changed per new
legislation enacted in the 2018 Legislative Session.
•	 For the purpose of the percentage method calculation the
Standard Deduction amounts are now minimum $ 1,700
and maximum $2,550.
•	 Employers are responsible for ensuring that tax returns
are filed and deposits and payments are made, even if the
employer contracts with a third party to perform these
acts. The employer remains responsible if the third party
fails to perform any required action. If the third party
fails to make the tax payments, the Comptroller may
assess penalties and interest on the employer’s account.
The employer is liable for all taxes, penalties and interest
due. The employer may also be held personally liable
for certain unpaid taxes. To verify that the appropriate
returns have been filed and payments have been made,
you may contact the Comptroller’s Office at 1-800-6382937 or from Central Maryland 410-260-7980.
•	 Quarterly withholding tax returns are due on the 15th day
of the month that follows the calendar quarter in which
that income tax was withheld. Withholding tax rates for
gambling winnings have changed. See page 5 for details.
•	Year End Annual Reconciliation of withholding tax using
form MW508 are due on January 31st of each year
effective July 1st, 2016. See page 7 for details.
•	 A spouse whose wages are exempt from Maryland income
tax under the Military Spouses Residency Relief Act may
claim an exemption from Maryland withholding tax. See
page 6 for details.
•	 Employers or payors of payments subject to Maryland
withholding taxes are required to submit their W-2/MW508
data electronically if they have 25 or more employees.
The electronic file must be a modified EFW2 format text

file and upload through bFile W2 Bulk Upload application.
A PDF or Excel spreadsheet is not acceptable. Another
acceptable electronic option is to use the bFile website and
manually key in each W-2. See page 7 for details.
•	 We do not automatically send paper withholding tax
coupons to businesses that have not filed electronically in
the past. We strongly encourage all businesses to file their
withholding tax returns and payments and their annual
MW508 reconciliation electronically whenever possible, by
using our free bFile online service. bFile is safe and secure
and provides an acknowledgement of filing.
•	 You may file and pay your withholding return via the
following three electronic methods:
	 – 
bFile - File Withholding Returns (MW506) – You may file
and pay your employer withholding tax using electronic
funds withdrawal (direct debit) as well as file your zero
(0) balance withholding tax returns. bFile is located at
www.marylandtaxes.gov under Online Services.
	 – 
Electronic Funds Transfer (EFT) - Call 410-260-7980
to register.
	 – 
Credit Card - For alternative methods of payment,
such as a credit card, visit our website at www.
marylandtaxes.gov.
	 NOTE - If you use any of these filing options, DO NOT file
a paper return.
•	 Be sure your Central Registration Number and phone
number appear on all forms and correspondence.
For questions concerning the withholding of Maryland and local
taxes, please e-mail your questions to taxhelp@marylandtaxes.
gov or call Taxpayer Services Division at 1-800-638-2937 or
from Central Maryland 410-260-7980.

MARYLAND EMPLOYER WITHHOLDING
2

TABLE OF CONTENTS
Page
1. INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4
2.  HOW THE LAW APPLIES
	Employers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4
	
All Employers Register with Maryland. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4
	Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4
	
Employees' Social Security numbers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
	
Records to Keep. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4
	
Penalties for Failing to Comply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4
	
Civil and Criminal Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4
3.  PAYMENTS SUBJECT TO WITHHOLDING
	
Taxable Wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  5
	
Nonresident Employees Subject to Withholding. . . . . . . . . . . . . . . . . . . . . . . . . .  5
	
Lottery & Gambling Winnings Subject to Withholding. . . . . . . . . . . . . . . . . . . . . .  5
	
Exemption Certificate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
	
Withholding for Annuity, Sick Pay and Retirement Distributions. . . . . . . . . . . . . . .  6
	
Mandatory Withholding on Retirement Distributions. . . . . . . . . . . . . . . . . . . . . . .  6
	
Tax-exempt organizations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
4.  DETERMINING THE AMOUNT TO BE WITHHELD
	
How to Use the Percentage Charts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6
5.  HOW TO FILE
	bFile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6
	
Year End Reconciliation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  7
	 Names, Address and Federal Employer Identification Number Changes and Final
Returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8
	Amendments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8
		
MW506A, MW506AM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8
		MW508A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8
	
Where Amended Returns are to be Sent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  9
SPECIAL WITHHOLDING INFORMATION FOR SINGLES
AND STUDENTS ONLY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
IN THE EVENT OF A DISASTER OR EMERGENCY . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
PERCENTAGE INCOME TAX WITHHOLDING RATES
	
Maryland Resident Employees who work in Delaware. . . . . . . . . . . . . . . . . . . . .  10
	
2.25 Percent Local Income Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12
	
2.40 Percent Local Income Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
	
2.65 Percent Local Income Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16
	
2.75 Percent Local Income Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
	
2.85 Percent Local Income Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  20
	
3.00 Percent Local Income Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  22
	
3.05 Percent Local Income Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  24
	
3.10 Percent Local Income Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  26
	
3.20 Percent Local Income Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  28

*****

MARYLAND EMPLOYER WITHHOLDING
3

1. INTRODUCTION
The withholding of Maryland income tax is a part of the
state’s “pay-as-you-go” plan of income tax collection
adopted by the 1955 session of the Maryland General
Assembly. The provisions are set forth in the Tax-General
Article of the Annotated Code of Maryland.
The law aids in the proper collection of taxes required to be
reported by individuals with taxable income.
Generally speaking, the state’s system resembles the federal
withholding plans. The distinctive differences between the
state and federal systems are explained in this guide.
Withholding tax is not an additional tax, but merely a
­collection device. Its purpose is to collect tax at the source,
as the wages are earned, instead of collecting the tax a year
after the wages were earned.
Under the law, the sums withheld must be recorded by the
employer or payor in a ledger account to clearly indicate
the amount of tax withheld and that the tax withheld is the
­property of the State of Maryland.
Funds set aside by the employer or payor from taxes
­withheld are deemed by law to be held in trust for the use
and benefit of the State of Maryland. Any employer or payor
who negligently fails to either withhold the required tax or
to pay it to the Comptroller, or both, is held personally and
­individually liable for all monies involved.
If the employer is a corporate entity, the personal liability
extends and is applicable to the officer or agent of the
corporation whose duty it is to withhold the tax and
transmit it to the Comptroller as required by law.
To help keep accurate employer records, every employer
subject to the withholding provisions of the Maryland law
is assigned a Central Registration Number (CRN) (this is
your eight-digit Maryland tax account number). The Federal
Employer Identification Number (FEIN) assigned to you by
the IRS for federal purposes also is used for record-keeping
purposes. If you do not have a FEIN when you apply for
a Maryland account, we will assign you a CRN. When you
receive your FEIN, you should notify us immediately.
2. HOW THE LAW APPLIES
Employers
Generally, an employer is a person or organization, subject
to the jurisdiction of Maryland, for whom an individual
performs a service as an employee.
An employer who is not required by law to withhold Maryland
income tax may withhold Maryland income tax through
a voluntary arrangement with the employees or payees,
provided that the employer registers with the Revenue
Administration Division. This arrangement must conform to
the Maryland withholding and payment requirements.
All employers must register with Maryland
All employers are required to register with the Revenue
Administration Division by filing a Combined Registration
Application Form CRA. You also can register online at
www.marylandtaxes.gov. The employer will be assigned
a CRN that will be used for employer income tax withholding
as well as most other Maryland business taxes.
Do not wait until withholding payments are due to register as
an employer. Contact the Revenue Administration Division,
Annapolis, Maryland 21411 (410-260-7980) as soon as you
know you will be paying wages and withholding taxes.
You should have only one CRN for withholding purposes. If
you have more than one, notify the Revenue Administration
Division.
If you acquire another employer’s business, do not use
the number assigned to that business. Request a
Combined Registration Application Form CRA from the

Revenue Administration Division or register online at www.
marylandtaxes.gov. You must include your CRN and FEIN,
if available, on all forms, attachments and correspondence
you send to the Revenue Administration Division.
For withholding purposes “employee” means:
•	
An individual, whether a resident or nonresident of
Mary­
land, who performs any service in Maryland for
wages.
•	A resident of Maryland who performs any service outside
this state for wages.
•	
An officer, employee, or elected official of the United
States, Maryland, or any other state or territory, or any
political subdivision thereof, or the District of Columbia,
or any agency or instrumentality of any of the above.
•	An officer of a corporation.
Employees' Social Security numbers
You must record the name and address of each employee
or payee exactly as it appears on the Social Security card.
If a new employee does not have a Social Security card,
have the employee obtain one at any Social Security
Administration office.
Records to keep
You are required to keep all records pertaining to the
payment of wages and the deduction and withholding of
Maryland income tax. These records must be available
for inspection by the Revenue Administration Division and
include:
•	
The amounts and dates of all wage payments to each
employee.
•	
The amounts and dates for all Maryland income taxes
­withheld from wage payments to each employee.
• 	­The name, address, Social Security Number, and period
of employment for each employee.
•	Each employee’s exemption certificate.
• 	­
Your identification number, the amount of Maryland
income tax withheld and paid to the Comptroller of
Maryland, and the dates payments were made.
All records should be retained for a period of at least three
years after the date the tax to which they relate became
due or the date the tax was paid, whichever is later.
Penalties for failing to comply
Any employer who fails to file returns or remit amounts
collected as required is subject to a penalty not to exceed
25% of the unpaid tax.
If an employer pays tax, interest or penalty by check (or
other instrument) that is not honored by the bank on which
it is drawn, the employer shall be assessed a service charge
of $30.
Remember! The money you withhold from your
employees is held in trust for the State of Maryland.
Civil and Criminal Penalties
Civil Penalties
»	Suspension or revocation of all business licenses issued
by the State to the employer for willful failure to withhold
or pay income tax to the Comptroller.
» 
Imposition of a $50 penalty for each violation for
willful failure to provide an income tax statement or for
providing a false withholding statement.
Also, for willful non-compliance with a wage lien, the
employer will be personally liable for excess wages paid
to an employee subject to the lien. In addition, all unpaid
withholding tax, interest and penalties, constitute a lien in
favor of the State of Maryland, extending to all real and

MARYLAND EMPLOYER WITHHOLDING
4

personal property belonging to the employer.
Criminal Penalties (Upon Conviction)
»	Not to exceed ten thousand dollars ($10,000) or
imprisonment not exceeding five years or both, for:
•	 Willful failure to file a return.
•	 Willful failure to withhold the required tax.
•	 Willful failure to pay the tax withheld to the Comptroller.
»	
Not to exceed five-hundred dollars ($500) or
imprisonment not exceeding six months or both, for:
• 	Willful failure to provide a copy of withholding tax
statement.
•	Providing a false or fraudulent withholding tax
statement.
•	Failure to provide information on a withholding
certificate or for filing a false certificate.
•	Willful failure to pay to the Comptroller salary wages
or compensation subject to a salary lien.
3. PAYMENTS SUBJECT TO WITHHOLDING
Taxable wages
For withholding purposes, “wages” mean all compensation
for services performed by an employee, including the
cash value of all remuneration paid in any medium other
than cash. (Exceptions are listed later in this section.)
These exceptions are similar to the exclusions for federal
withholding purposes, so that in most instances wages
subject to federal withholding also will be subject to
Maryland withholding.
Taxable “wages” include all employee compensation, such as
salaries, fees, bonuses, commissions, vacation allowances,
back pay and retroactive increases.
Wages paid in any form other than money are measured
by their fair market value. These include lodging, meals,
property or other considerations for personal services.
Agricultural wages subject to Social Security (FICA) tax are
subject to Maryland withholding tax. Tips and gratuities
paid to an employee by a customer also are subject to
withholding tax in the same manner as reported for federal
purposes.
Withholding is not required for the following:
•	Domestic service in a private home, local college club or
local chapter of a college fraternity or sorority.
•	
Services performed by a duly ordained, commissioned
or licensed minister of a church in the exercise of his
ministry or by a member of a religious order in the
­exercise of duties required by such order.
•	
Nonresident individuals employed as seamen upon
vessels engaged in oceanic and foreign trade or
commerce while such vessels are within any of the ports
of Maryland.
•	Single and student employees whose total income
will be less than the minimum filing requirement.
(See page 9.)
•	
Employees paid at a rate of less than $5,000
annually.
Nonresident employees subject to withholding
A nonresident is not subject to tax if:
•	
His income consists entirely of wages or other
compensation for personal services performed in
Maryland; and
•	The state of residence has agreed in writing to allow a
­reciprocal exemption from tax and withholding for each
other’s residents.
As a result of this provision, the residents of a number of

states are exempt and no withholding of Maryland tax is
to be made by the employer. Under such circumstances,
it is necessary that Maryland Form MW507, Employee
Maryland Withholding Exemption Certificate, be filed with
the employer in which the employee certifies that he resides
within one of the reciprocal states listed on the form.
Nonresidents from states that have no income tax law or
have no written reciprocal income tax agreement with this
state are subject to Maryland tax and withholding must be
made from salaries and wages for services performed in
Maryland.
Withholding is also required in a sale or exchange of real
property and associated tangible personal property owned
by a nonresident or nonresident entity.
Lottery & gambling winnings subject to withholding
Lottery and other gambling winnings in excess of $5,000
are subject to with­holding at a rate of 8.75% for Maryland
residents or 8% for nonresidents. Pari-mutuel (horse
racing) winnings in excess of $5,000 and at least 300 times
as large as the original wager are subject to the same
withholding rates.
Exemption certificate
At the time of or before hiring a new employee, the
employer must obtain a certificate of exemption, Maryland
Form MW507, from the employee. This certificate authorizes
the employer to withhold Maryland income tax from the
employee's salary, based on the number of withholding
exemptions claimed on Form MW507. Often, the number of
withholding exemptions will correspond with the number of
personal exemptions allowed the employee in computing his
tax on his Maryland income tax return.
However, if the employee expects that his federal adjusted
gross income will exceed $100,000 (or $150,000 if filing a joint
income tax return) he must use the worksheet to recalculate
the number of withholding exemptions to which he is entitled.
The value of personal exemptions will be reduced at this
income level on the Maryland income tax return. (To see the
reduction in exemptions, at the various income levels, go to
page two of Maryland Form MW507 which can be obtained
at www.marylandtaxes.gov.)
Also, if the employee expects that the amount of Maryland
income tax withheld will not equal the Maryland tax liability,
he must use the worksheet to recalculate the number of
exemptions to which he is entitled. The employee also may
enter into an agreement with the employer to have an
additional amount of tax withheld. As long as the number
of withholding exemptions claimed by the employee does
not exceed the number he is entitled under the law, the
total withholding exemptions shown on the Maryland Form
MW507 do not have to agree with the total shown on the
federal Form W-4.
When a new employee files a certificate, the employer
must make it effective with the first payment of wages.
A certificate, once filed with the employer, will remain in
effect until a new certificate is filed.
If an employee fails to furnish a certificate, the employer is
required to withhold the tax as if the employee had claimed
one withholding exemption.
An employer is required to submit a copy of the exemption
certificate received by the Comptroller if:
1.	The employer has any reason to believe this certificate
is incorrect.
2.	The employee claims more than ten (10) exemptions.
3.	The employee claims exemption from withholding on the
basis of nonresidence.
4.	
The employee claims exemption from withholding
because he/she has no tax liability this year, and the

MARYLAND EMPLOYER WITHHOLDING
5

wages are expected to exceed $200 a week.
5.	
The employee claims an exemption from withholding
under the Military Spouses Residency Relief Act. (In this
case, Form MW507M must be completed and attached to
Form MW507.)
When the exemption certificate is received, the Comptroller
will make a determination and will notify the employer if a
change is required.
Withholding for annuity, sick pay and retirement
distributions
A payee of an annuity, sick pay or retirement distribution
may request the payor to withhold tax with respect to
payments of annuities, sick or retirement distribution
­payments. If such a request is made, the payor must deduct
and withhold the tax as required. The amount requested
to be withheld from each sick pay, annuity payment or
retirement distribution must be a whole dollar amount
of at least $5 per month for annuities and retirement
distributions, and at least $2 per daily payment in the case
of sick pay.
Mandatory withholding on retirement distributions
When a rollover distribution is subject to a mandatory federal
withholding, the eligible rollover distribution of Maryland
residents is subject to a mandatory state withholding of
7.75%. Otherwise, such withholding should not take place
unless requested by the payee.
Tax-exempt organizations
Entities which are tax-exempt organizations under IRC
501(c)(3), and that are eligible to claim the Maryland
Disability Employment Tax Credit or the Commuter Tax
Credit against their withholding taxes, will use Form
MW508CR to claim the amount of credit.
The paper
version of Form 500CR has been discontinued. MW508CR
is attached to MW508 for employers submitting fewer than
25 Forms W-2 or 1099. MW508CR is attached to Form
MW508A for those employers required to file electronically.
See Administrative Release 34
4. DETERMINING THE AMOUNT TO BE WITHHELD
Maryland law provides that the Comptroller develop
withholding tax schedules to approximate the tax on wages,
without considering the tax rates in effect that are less than
4.75%.
In this guide, you will find the appropriate percentage for
the computation of the amount of Maryland income tax to
be withheld. Apply the applicable percentage to the taxable
income. Note: there are two different rates explained
below.
The SINGLE rate is used by single employees; employees
who are dependents on another person's tax return, or
employees who are Married planning to file separately. The
JOINT rate is used by Married taxpayers who plan to file
joint returns, employees who qualify for Head of Household
status on their tax return, or for employees who qualify as
Widow or Widower with a dependent child.
For employees who are residents of Maryland, use the rate
corresponding to the area where the employee lives. Since
each county sets its local income tax rate, there is the
possibility of having 24 different local income tax rates. We
have calculated 9 local income tax rates. Use the rate that
equals or slightly exceeds the actual local income tax rate
to ensure that sufficient tax is withheld.
For employees who are not residents of Maryland, use the
Nonresident rate, which includes no local tax; but does
include the Special 2.25% Nonresident rate.
For employees who are residents of Maryland and are
working and paying withholding taxes in Delaware or any
other nonreciprocal state, use the Delaware/Nonreciprocal

state rate, which includes local tax and credit for taxes paid
to another state or locality.
Withholding is a combination of the state income tax rate
and local taxes. When using the percentage method of
withholding, the employer must follow these four steps:
1.	
Subtract an allowance for Standard Deduction (15
percent of wages for the payroll period with a minimum
and maximum as set forth for the particular payroll)
from the employee’s wages.
2.	Multiply the amount of one withholding exemption for
the payroll period by the number of exemptions claimed
on the employee’s Form MW507.
3.	
Subtract the amount determined in Step 2 from the
employee’s wages.
4.	
Apply the appropriate percentage rate table to the
resulting figure to determine the amount of withholding,
based on the employee’s county of residence. If the
employee is a resident of a nonreciprocal state, use the
special nonresident tax rate.
Visit www.marylandtaxes.gov
withholding calculator.

to

use

our

online

5. HOW TO FILE
For filing purposes, employers will fall into one of five types
of filing categories:
•	 Accelerated – those employers who were required to
withhold $15,000 or more for the preceding calendar year
and who have $700 or more of accumulated withholding
are required to remit the withholding payment within
three business days following that payroll (pay date).
You may request a waiver allowing monthly returns.
A renewal of the waiver also is available if eligibility
to file federal withholding tax returns on a monthly
basis is unchanged. Pay date is defined as the date the
paychecks are made ­available to employees.
•	 Quarterly – those employers with less than $700 of
withholding per quarter who are required to remit the
tax withheld on a quarterly basis.
•	 Monthly – those employers with more than $700 of
withholding in any one quarter who are required to remit
the tax withheld on a monthly basis.
•	 Seasonal – those employers who operate only during
certain months. You must obtain prior approval to file
­
on a seasonal basis. If approval is granted, you would
only be required to file reports during the period your
business is in operation.
•	 A nnual – those employers with less than $250
withholding per calendar year are required to remit
the tax withheld on an annual basis. The due date for
filing an annual Form MW506 is the last day of January
following the year to which such withholding applies. In
addition, annual filers must file the Annual Reconciliation
Form MW508 with the Form W-2 for each employee.
bFile
This online service is used to file and pay Employer’s Return
of Income Tax Withheld (MW506). A valid FEIN or SSN and
Maryland CRN (this is your eight-digit Maryland tax account
number) are required. If you have not registered to file
Maryland business taxes or do not have a CRN, you may
register on our Web site at www.marylandtaxes.gov.
You may be asked to provide a bank routing and transit
number (RTN) and a depositor’s account number (DAN) to
make payments of business taxes. The funds automatically
will be withdrawn from your bank account on the date
specified.
Do not send a paper return when using bFile, this
online service supports the current year and two previous

MARYLAND EMPLOYER WITHHOLDING
6

years. If your return is for a prior period, you may request
these forms by calling Taxpayer Service Division 410-2607980, or e-mail [email protected].
The Revenue Administration Division has sent postcards to
withholding filers advising them we no longer send paper
coupon books unless the postcard was returned or an
e-mail was received requesting them. This is an effort to
reduce and/or eliminate paper processing and to encourage
employers to use the online service which has many
benefits to offer:
Fast – Enter your business and bank information once.
The information will be filled in each time you file a return,
using auto-fill.
Accurate – The automatic fill-in feature eliminates the risk
of accidently entering wrong business or bank information
when you file your return.
Easy – bFile supports filing and associating multiple
businesses under one user registration. A list of the
businesses will be displayed when you log on.
History – All returns you file while logged on will be
accessible to view in a consolidated list.
You must include your CRN, and, if available, your
FEIN on all withholding forms or other correspondence.
This will ensure that all payments and/or adjustments are
properly ­posted to your account.
Each year, the Revenue Administration Division analyzes
accounts. If a payment record requires a change in filing
frequency, the employer will be notified. An employer may
file a written request to change the filing frequency, which if
approved will change at the beginning of the next calendar
year. For paper filers, the coupon book for the new calendar
year will reflect any change.
The due dates of returns are as follows:
Period	

Due date	

Period	

Due date

January. . . . . . February 15	

July . . . . . . . . August 15

February. . . . . March 15	

August . . . . . . September 15

March . . . . . . . April 15	

September . . . October 15

1st Quarter . . . April 15	

3rd Quarter. . . October 15

April . . . . . . . . May 15	

October . . . . . November 15

May. . . . . . . . . June 15	

November. . . . December 15

June . . . . . . . . July 15	

December. . . . January 15

2nd Quarter. . . July 15	

4th Quarter. . . January 15

		

Annual . . . . . . January 31

If a due date falls on a Saturday, Sunday or holiday,
the return is due on the next business day.
W-2 Wage and Tax Statements
On or before January 31 of each year, employers must
provide a wage and tax statement, federal Form W-2, to
each employee. To ensure consistency in reporting, the
Revenue Administration Division will require the state tax
withheld (box 17) and local tax withheld (box 19) to be
combined and reported as one amount in box 17 (state
income tax), and leave box 18 (local wages) blank. The
state pickup amount must be reported in box 14 (other). In
addition, the word “STPICKUP” is to appear in box 14 (other)
of your employees’ year-end printed Form W-2.
Year-End Reconciliation
On or before January 31st of each year, employers must
file a year end reconciliation to the Revenue Administration
Division using Form MW508. Employers have three options
to file their Form MW508. Employers who have 25 or more
W-2s to report are required to file electronically and must
select option 1 or 2. Employers who have less than 25
W-2s to report may use option 3 – paper filing, however,
we encourage all employers regardless of the number of

statements to file electronically using one of the first two
options below.
Any underpayment must be submitted with the reconciliation.
If the account is overpaid, please indicate on the MW508,
whether you wish to have the overpayment refunded or
applied as a credit to future periods. If you request the
credit, please wait for notification of approval prior to using
the credit.
To obtain a complete copy of the 2022 Maryland Employer
Reporting of W-2s Instructions and Specifications booklet,
please visit www.marylandtaxes.gov.
(1)	 bFile Bulk Upload Application. This application
allows the user (employers/payroll providers) to log
in to our bFile application and upload a text file in
the modified EFW2 format. This application uses the
same registration for filing Withholding and Sales and
Use Tax returns and payments. As a registered user,
you will create a history that can be viewed by you
whenever you log in to the application.
The Bulk Upload application is designed to accept one
file and validate it before it will accept another file.
We recommend that individuals who submit data for
multiple employers create a separate registration for
each employer, or create one logon and append all
employer data in one file.
Of the four required records within the electronic text
file, the RV record is an electronic version of the paper
form MW508, and is a required record if you file using
this option. If requesting an overpayment or refund, the
request must be included in the RV record.
Also, in the “RV” record, the NAICS code (Business
Activity Code) field position 333-338 is a required 6
digit field (included on the paper MW508). Blanks in
these positions will cause your file to be rejected.
The North American Industry Classification System
(NAICS) is the standard used by federal statistical
agencies in classifying business establishments for
the purpose of collecting, analyzing, and publishing
statistical data related to the U.S. business economy.
To find your NAICS code, please reference http://
www.census.gov/eos/www/naics/ or call 301763-INFO (4636)/ 800-923-8282 (Census Bureau).
The bFile Bulk Upload Testing Application is available
as well. This application allows users to test their
ability to upload and transmit their W-2s and MW508s
using a text or zip file, prior to uploading their annual
production file.
NOTE: at this time, 1099s cannot be submitted using
this method.
(2)	 bFile File Withholding Reconciliation Application.
This application allows the user (employers/payroll
providers) to log in to our bFile application and
manually key the data from their MW508 and up to 250
W-2 forms. Each W-2 must be keyed in individually,
and the user receives confirmation of the filing when
completed. This application uses the same registration
for filing Withholding and Sales and Use Tax returns
and payments. As a registered user, you will create a
history that can be viewed by you whenever you log in
to the application. Only one MW508 may be filed online
per business per tax year. If you need to correct a
submitted filing then you must complete a paper form
MW508A which can be downloaded from our website.
Of the four required records within the electronic text
file, the RV record is an electronic version of the paper
form MW508, and is a required record if you file using
this option. If requesting an overpayment or refund, the
request must be included in the RV record.
Also, in the “RV” record, the NAICS code (Business

MARYLAND EMPLOYER WITHHOLDING
7

Activity Code) field position 333-338 is a required 6
digit field (included on the paper MW508). Blanks in
these positions will cause your file to be rejected.
The North American Industry Classification System
(NAICS) is the standard used by federal statistical
agencies in classifying business establishments for
the purpose of collecting, analyzing, and publishing
statistical data related to the U.S. business economy.
To find your NAICS code, please reference http://
www.census.gov/eos/www/naics/ or call 301763-INFO (4636)/ 800-923-8282 (Census Bureau).
The reporting of 1099 withholding on the MW508 may
be submitted by SFTP (Secure File Transfer Protocol)
paper. If submitting 25 or more 1099s, you are required
to file electronically by SFTP. There is no other mode of
electronic submission of 1099s.

provided when they are prepared for the new calendar year.
If your FEIN has changed, you may be issued another
coupon book reflecting the new identification number. If
you are using our online options and have updated the FEIN
online, nothing more needs to be done.
You must indicate if the business has been sold or
discontinued. You can do this online as well as using Form
MW506FR. You must notify the Comptroller of Maryland if
withholding has temporarily stopped as well as an ending
date for the temporary stoppage.
Amendments
MW506A or MW506AM

To obtain a complete copy of The Maryland Employer
Reporting of 1099s Instructions and Specifications
please visit www.marylandtaxes.gov.

The Form MW506A is used to amend Form MW506 information
for the current calendar year. Enter the period and year
being amended. Enter the previously reported and remitted
amounts under “Previously Reported.” Enter the figures
reflecting the change to the reported amounts under
“Correct Reported.”

NOTE: For questions on bFile Bulk Upload Application,
bFile File Withholding Reconciliation Application, please
contact the Revenue Administration Division at 410260-7150.

If the correct amount is greater than the previously
reported amount, enter the difference in the underpayment/
remittance block, and attach a check or money order
payable to the Comptroller of Maryland.

(3)	 File Using Paper This option is available to employers
and payroll providers who have fewer than 25 W-2
forms to report. To file by paper you must:

If the amount is less than the previously reported amount,
enter the amount in the overpayment block. You may
use this amount as a refund or credit against future
withholdings. If you are requesting a credit, please wait for
notification of approval prior to using the credit on a future
period. Please check the appropriate box for a credit or
refund on Form MW506A.

•	 Complete Form MW508.
•	 Attach all applicable W-2s and 1099s.
•	 Then mail to:
	Revenue Administration Division
	 Returns Processing, Room 206
	 110 Carroll Street
	 Annapolis, Maryland 21411-0001

MW508A
The Form MW508A is used to amend Form MW508
­information.

If you are not required to report electronically by federal
or Maryland law, and do not wish to submit individual wage
and tax statements, using federal Form W-2 (copy 1), the
Revenue Administration Division will accept a computer
printout provided it contains all of the following information:
•	 Employer name
•	 Employer address
•	Employer Central Registration Number and Federal
Employer Identification Number (FEIN)
•	 Employee name

Enter the figures from the originally filed Form MW508
in the “Previously Reported” column. Enter the figures
reflecting changes created by the Forms W-2C in the
“Corrected Amounts” column.
If the amount on line 3, “Corrected Amounts” column,
is greater than the amount on line 2, attach a check or
money order payable to the Comptroller of Maryland for the
amount on line 5.
If the amount on line 2 is greater than the amount on line
3, attach a statement containing the following information:
1. 
Details how the overpayment occurred with all W-2s
pertaining to that overpayment.

•	 Employee address
•	 Employee Social Security Number
•	 Employee gross earnings
•	 Employee Maryland earnings
•	Amount of Maryland state and local tax withheld from
employee (one figure)
The printout should list the employee’s names in alphabetical
order or Social Security number order. Employers reporting
on computer printouts are still required to furnish each
employee with the annual wage and tax statement, or
federal Form W-2, for reporting salaries and wages for
Maryland tax withheld on the employee’s individual tax
returns.
For all corrections to individual employee accounts, a Form
W2C must be submitted on paper.
Name, Address, Federal Employer Identification
Number Changes and Final Returns.
You can make changes to your name, address, FEIN, and
more online; or use the change of address or ownership
form in the coupon book. Do not make the changes on the
Form MW506. If you have elected to continue to use the
coupon books, they will reflect the new information you have

2. 
Whether you will use the overpayment as a credit
against Maryland withholding tax for a future period,
or if you prefer a direct refund. If you are requesting
a credit, please wait for notification of approval
prior to using the credit on a future period.
3. The method by which you submitted the original W-2,
(magnetic tape, paper, etc.)
An employer is not allowed to adjust the amounts reported
as income tax withheld in a prior calendar year unless it is
to ­correct an administrative error. An administrative error
is any error that does not change the amount of income tax
that was actually withheld. Generally, an employer cannot
adjust the amounts reported for a prior year because the
employee uses the amount shown on Form W-2 as a credit
when filing the income tax return for the year.
Where Amended Returns Are To Be Sent
All returns in connection with withholding of Maryland
income tax are to be sent to the following address:
 omptroller of Maryland
C
Remittance Processing Center
110 Carroll Street
Annapolis, Maryland 21411-0001

MARYLAND EMPLOYER WITHHOLDING
8

All remittances should be made by check or money order
payable to the Comptroller of Maryland-WH.
Employers are ­cautioned not to send cash by mail.
SPECIAL WITHHOLDING INFORMATION FOR SINGLES
AND STUDENTS ONLY

• Frederick Co. The local tax rates for taxable year

2023 are as follows:

(1) .0275 for taxpayers with Maryland taxable income
of $100,000 or less and a filing status of married
filing joint, head of household, and qualifying
widow(er) with dependent child;

If the employee’s income is below the following
amounts and this income is their only income for the
year, you will not be required to withhold Maryland
Income Tax.

(2) .0275 for taxpayers with Maryland taxable income
of $50,000 or less and a filing status of single,
married filing separately, and dependent; and

	

Weekly	

$	249.04

(3) .0296 for all other taxpayers.

	

Biweekly	

$	498.06

	

Semi-Monthly	 $	539.59

	

Monthly	

$	1,079.17

	

Quarterly	

$	3,237.50

	

Annual	

$	12,950.00

	

Daily	

$	35.48

• For lump sum distribution of annual bonus,

the withholding amount should be calculated at the
highest State tax rate (5.75%), and the highest
local tax rate for the county of residence (see the
combined withholding percentage rate for lump sum
distribution below).

In the event of a disaster or an emergency
If the Governor of Maryland declares a state of emergency,
or, the President declares a federal major disaster or state of
emergency, or, there is a widespread utility outage, any outof-state business that has no registration, nexus or tax filings
in Maryland prior to the declared state of emergency will be
exempt from certain registration requirements. This does
not apply to a business with a prior request to be a Maryland
registered business or to State or local government.
These out-of-state businesses that do disaster- or emergency
related work during a disaster as well as its out-of-state
employees are not subject to the following:
	

• State and local licensing or registration requirements.

	

• State or County income taxes.

	

• Unemployment insurance contributions.

	

• Personal property tax.

	

• Sales and Use Tax requirements.

	

• Employer withholding tax requirements.

However, such businesses must provide a statement related
to the disaster to the Comptroller of Maryland with the
following information:
	

• Company name.

	

• State of domicile.

	

• Principal address.

	

• Federal Tax Identification Number.

	

• Date of entry into the state, and,

	

• Contact information.

NOTE:
• Anne Arundel Co. The local tax rates for taxable

year 2023 are as follows:

(1) .0270 of an individual’s Maryland taxable
income of $1 through $50,000; and
(2) .0281 of an individual’s Maryland taxable
income in excess of $50,000.

MARYLAND EMPLOYER WITHHOLDING
9

Percentage method of withholding for
MARYLAND RESIDENT EMPLOYEES WHO WORK IN DELAWARE
Payroll
period

Amount
of one
exemption
			
Weekly	
$	
61.54	
Bi-weekly	
$	
123.08	
Semi-monthly	 $	
133.33	
Monthly	
$	
266.67	
Quarterly	
$	
800.00	
Annually	
$	 3,200.00	
Daily	
$	
8.77	

15% allowance for
Standard Deduction*
MIN	
$	
32.69	
$	
65.38	
$	
70.84	
$	
141.67	
$	
425.00	
$	 1,700.00	
$	
4.66	

MAX
$	
49.09
$	
98.08
$	
106.25
$	
212.50
$	
637.50
$	 2,550.00
$	
6.99

FORMULA

Total wages (before any deductions)
LESS	

Allowance for Standard Deduction (15% of wages for
payroll period with a minimum and maximum as set
forth for the particular payroll period)

LESS	Value of exemptions (number of exemptions times
the allowable amount for one exemption as shown
for the applicable payroll period)
Equals	

TAXABLE INCOME

*	 The standard Deduction is 15% of the gross income with a
minimum of $1,700 and a maximum of $2,550.

Note: The number of exemptions to be used in this formula
is determined from the Form MW507 (Maryland Employee
Exemption Certificate) filed by your employee. Form MW507 is
available on our Web site at www.marylandtaxes.gov.

(a) Married Filing Joint or Head of Household

(b) Single including Married Filing Separately or Dependent

Withholding - Weekly payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $96.00
IF THE taxable income is	
	
Over	
But not over	

$	

0	

$	

The amount to be
withheld shall be	

of excess over

2,885				3.20%

Withholding - Weekly payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $96.00
IF THE taxable income is	The amount to be
	
Over	
But not over	
withheld shall be	
$	

0	

$	

of excess over

1,923				3.20%

$	2,885	
$	3,365		
92.31	
plus	
3.20%	
$	 2,885

$	1,923	
$	2,404		
61.54	
plus	
3.20%	
$	 1,923

$	3,365	
$	4,327		
107.69	
plus	
3.20%	
$	 3,365

$	2,404	
$	2,885		
76.92	
plus	
3.20%	
$	 2,404

$	4,327	
$	5,769		
138.46	
plus	
3.20%	
$	 4,327

$	2,885	
$	4,808		
92.31	
plus	
3.20%	
$	 2,885

$	

$	

5,769		

--		 184.62	 plus	3.20%	 $	

5,769

Withholding - Bi-Weekly payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $192.00
IF THE taxable income is	
	
Over	
But not over	
$	

0	

$	

The amount to be
withheld shall be	

of excess over

5,769				3.20%

4,808		

--		 153.85	 plus	3.20%	 $	

4,808

Withholding - Bi-Weekly payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $192.00
IF THE taxable income is	
	
Over	
But not over	
$	

0	

$	

The amount to be
withheld shall be	

of excess over

3,846				3.20%

$	5,769	
$	6,731		
184.62	
plus	
3.20%	
$	 5,769

$	3,846	
$	4,808		
123.08	
plus	
3.20%	
$	 3,846

$	6,731	
$	8,654		
215.38	
plus	
3.20%	
$	 6,731

$	4,808	
$	5,769		
153.85	
plus	
3.20%	
$	 4,808

$	

$	5,769	
$	9,615		
184.62	
plus	
3.20%	
$	 5,769

$	

8,654	

$	

11,538		

11,538		 276.92	 plus	3.20%	 $	

8,654

--		 369.23	 plus	3.20%	 $	

11,538

Withholding - Semi-Monthly payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $208.00
IF THE taxable income is	
	
Over	
But not over	
$	

0	

$	

The amount to be
withheld shall be	

of excess over

$	

9,615		

9,615

Withholding - Semi-Monthly payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $208.00
IF THE taxable income is	
	
Over	
But not over	

$	

6,250				3.20%

--		 307.69	 plus	3.20%	 $	

0	

$	

The amount to be
withheld shall be	

of excess over

4,167				3.20%

$	6,250	
$	7,292		
200.00	
plus	
3.20%	
$	 6,250

$	4,167	
$	5,208		
133.33	
plus	
3.20%	
$	 4,167

$	7,292	
$	9,375		
233.33	
plus	
3.20%	
$	 7,292

$	5,208	
$	6,250		
166.67	
plus	
3.20%	
$	 5,208

$	
$	

9,375	

$	

12,500		

12,500		 300.00	 plus	3.20%	 $	

9,375

$	

--		 400.00	 plus	3.20%	 $	

12,500

$	

Withholding - Monthly payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $417.00
IF THE taxable income is	
	
Over	
But not over	

The amount to be
withheld shall be	

of excess over

6,250	

$	

10,417		

10,417		 200.00	 plus	3.20%	 $	

6,250

--		 333.33	 plus	3.20%	 $	

10,417

Withholding - Monthly payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $417.00
IF THE taxable income is	
	
Over	
But not over	

The amount to be
withheld shall be	

of excess over

$	

0	

$	

$	12,500	$	14,583		
400.00	
plus	
3.20%	
$	 12,500

$	

8,333	

$	

$	14,583	$	18,750		
466.67	
plus	
3.20%	
$	 14,583

$	10,417	$	12,500		
333.33	
plus	
3.20%	
$	 10,417

$	18,750	$	25,000		
600.00	
plus	
3.20%	
$	 18,750

$	12,500	$	20,833		
400.00	
plus	
3.20%	
$	 12,500

$	

$	

$	

0	

$	

25,000		

12,500				3.20%	

--		 800.00	 plus	3.20%	 $	

25,000

20,833		

8,333				3.20%	
10,417		 266.67	 plus	3.20%	 $	

--		 666.67	 plus	3.20%	 $	

This table includes Maryland state and local income taxes less credit for Delaware income tax
MARYLAND EMPLOYER WITHHOLDING
10

8,333

20,833

Percentage method of withholding for
MARYLAND RESIDENT EMPLOYEES WHO WORK IN DELAWARE
Payroll
period

Amount
of one
exemption
			
Weekly	
$	
61.54	
Bi-weekly	
$	
123.08	
Semi-monthly	 $	
133.33	
Monthly	
$	
266.67	
Quarterly	
$	
800.00	
Annually	
$	 3,200.00	
Daily	
$	
8.77	

15% allowance for
Standard Deduction*
MIN	
$	
32.69	
$	
65.38	
$	
70.84	
$	
141.67	
$	
425.00	
$	 1,700.00	
$	
4.66	

MAX
$	
49.09
$	
98.08
$	
106.25
$	
212.50
$	
637.50
$	 2,550.00
$	
6.99

FORMULA

Total wages (before any deductions)
LESS	

Allowance for Standard Deduction (15% of wages for
payroll period with a minimum and maximum as set
forth for the particular payroll period)

LESS	Value of exemptions (number of exemptions times
the allowable amount for one exemption as shown
for the applicable payroll period)
Equals	

TAXABLE INCOME

*	 The standard Deduction is 15% of the gross income with a
minimum of $1,700 and a maximum of $2,550.

Note: The number of exemptions to be used in this formula
is determined from the Form MW507 (Maryland Employee
Exemption Certificate) filed by your employee. Form MW507 is
available on our Web site at www.marylandtaxes.gov.

(a) Married Filing Joint or Head of Household

(b) Single including Married Filing Separately or Dependent

Withholding - Quarterly payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $1,250.00
IF THE taxable income is	
	
Over	
But not over	
$	

0	

$	

The amount to be
withheld shall be	

of excess over

37,500				3.20%

Withholding - Quarterly payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $1,250.00
IF THE taxable income is	
	
Over	
But not over	
$	

0	

$	

The amount to be
withheld shall be	

of excess over

25,000				3.20%

$	37,500	$	43,750		
1,200.00	
plus	
3.20%	
$	 37,500

$	25,000	$	31,250		
800.00	
plus	
3.20%	
$	 25,000

$	43,750	$	56,250		
1,400.00	
plus	
3.20%	
$	 43,750

$	31,250	$	37,500		
1,000.00	
plus	
3.20%	
$	 31,250

$	56,250	$	75,000		
1,800.00	
plus	
3.20%	
$	 56,250

$	37,500	$	62,500		
1,200.00	
plus	
3.20%	
$	 37,500

$	

$	

75,000		

--		2,400.00	 plus	 3.20%	

$	

75,000

$	

0	

$	

The amount to be
withheld shall be	

of excess over

$	

62,500

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $13.70
IF THE taxable income is	
	
Over	
But not over	
$	

412				3.20%

--		2,000.00	 plus	 3.20%	

Withholding - Daily payroll period

Withholding - Daily payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $13.70
IF THE taxable income is	
	
Over	
But not over	

62,500		

0	

$	

The amount to be
withheld shall be	

of excess over

275				3.20%

$	412	
$	481		
13.19	
plus	
3.20%	
$	 412

$	275	
$	343		
8.79	
plus	
3.20%	
$	 275

$	481	
$	618		
15.38	
plus	
3.20%	
$	 481

$	343	
$	412		
10.99	
plus	
3.20%	
$	 343

$	618	
$	824		
19.78	
plus	
3.20%	
$	 618

$	412	
$	687		
13.19	
plus	
3.20%	
$	 412

$	

$	

824		

--		

26.37	 plus	3.20%	 $	

824

Withholding - Annual payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $5,000.00
IF THE taxable income is	
	
Over	
But not over	

The amount to be
withheld shall be	

of excess over

$	

0	

$	

150,000				 3.20%

$	

150,000 	

$	

175,000 		4,800.00	 plus	 3.20%	

$	

150,000

$	

175,000 	

$	

225,000 		5,600.00	 plus	 3.20%	

$	

175,000

$	

225,000 	

$	

300,000 		7,200.00	 plus	 3.20%	

$	

225,000

$	

300,000 		

--		9,600.00	 plus	 3.20%	

$	

300,000

687		

--		

21.98	 plus	3.20%	 $	

687

Withholding - Annual payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $5,000.00
IF THE taxable income is	
	
Over	
But not over	

The amount to be
withheld shall be	

of excess over

$	

0	

$	

100,000 				 3.20%	

$	

100,000 	

$	

125,000 		3,200.00	 plus	 3.20%	

$	

100,000

$	

125,000 	

$	

150,000 		4,000.00	 plus	 3.20%	

$	

125,000

$	

150,000 	

$	

250,000 		4,800.00	 plus	 3.20%	

$	

150,000

$	

250,000 		

--		8,000.00	 plus	 3.20%	

$	

250,000

Lump Sum Distribution of Annual Bonus
The amount to be withheld shall be
3.20%
This table includes Maryland state and local income taxes less credit for Delaware income tax
MARYLAND EMPLOYER WITHHOLDING
11

Percentage method of withholding for
2.25 PERCENT LOCAL INCOME TAX
Payroll
period

Amount
of one
exemption
			
Weekly	
$	
61.54	
Bi-weekly	
$	
123.08	
Semi-monthly	 $	
133.33	
Monthly	
$	
266.67	
Quarterly	
$	
800.00	
Annually	
$	 3,200.00	
Daily	
$	
8.77	

15% allowance for
Standard Deduction*
MIN	
$	
32.69	
$	
65.38	
$	
70.84	
$	
141.67	
$	
425.00	
$	 1,700.00	
$	
4.66	

MAX
$	
49.09
$	
98.08
$	
106.25
$	
212.50
$	
637.50
$	 2,550.00
$	
6.99

FORMULA

Total wages (before any deductions)
LESS	

Allowance for Standard Deduction (15% of wages for
payroll period with a minimum and maximum as set
forth for the particular payroll period)

LESS	Value of exemptions (number of exemptions times
the allowable amount for one exemption as shown
for the applicable payroll period)
Equals	

TAXABLE INCOME

*	 The standard Deduction is 15% of the gross income with a
minimum of $1,700 and a maximum of $2,550.

Note: The number of exemptions to be used in this formula
is determined from the Form MW507 (Maryland Employee
Exemption Certificate) filed by your employee. Form MW507 is
available on our Web site at www.marylandtaxes.gov.

(a) Married Filing Joint or Head of Household

(b) Single including Married Filing Separately or Dependent

Withholding - Weekly payroll period

Withholding - Weekly payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $96.00
IF THE taxable income is	
	
Over	
But not over	
$	

0	

$	

The amount to be
withheld shall be	

of excess over

2,885				7.00%

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $96.00
IF THE taxable income is	
	
Over	
But not over	
$	

0	

$	

The amount to be
withheld shall be	

of excess over

1,923				7.00%	

$	2,885	
$	3,365		
201.92	
plus	
7.25%	
$	 2,885

$	1,923	
$	2,404		
134.62	
plus	
7.25%	
$	 1,923

$	3,365	
$	4,327		
236.78	
plus	
7.50%	
$	 3,365

$	2,404	
$	2,885		
169.47	
plus	
7.50%	
$	 2,404

$	4,327	
$	5,769		
308.89	
plus	
7.75%	
$	 4,327

$	2,885	
$	4,808		
205.53	
plus	
7.75%	
$	 2,885

$	

$	

5,769		

--		 420.67	 plus	8.00%	 $	

5,769

Withholding - Bi-Weekly payroll period

$	

0	

$	

The amount to be
withheld shall be	

of excess over

4,808

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $192.00
IF THE taxable income is	
	
Over	
But not over	

$	

5,769				7.00%

--		 354.57	 plus	8.00%	 $	

Withholding - Bi-Weekly payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $192.00
IF THE taxable income is	
	
Over	
But not over	

4,808		

0	

$	

The amount to be
withheld shall be	

of excess over

3,846				7.00%

$	5,769	
$	6,731		
403.85	
plus	
7.25%	
$	 5,769

$	3,846	
$	4,808		
269.23	
plus	
7.25%	
$	 3,846

$	6,731	
$	8,654		
473.56	
plus	
7.50%	
$	 6,731

$	4,808	
$	5,769		
338.94	
plus	
7.50%	
$	 4,808

$	

$	5,769	
$	9,615		
411.06	
plus	
7.75%	
$	 5,769

$	

8,654	

$	

11,538		

11,538		 617.79	 plus	7.75%	 $	

8,654

--		 841.35	 plus	8.00%	 $	

11,538

Withholding - Semi-Monthly payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $208.00
IF THE taxable income is	
	
Over	
But not over	
$	

0	

$	

The amount to be
withheld shall be	

of excess over

6,250				7.00%	

$	6,250	
$	7,292		
437.50	
plus	
7.25%	
$	 6,250
$	7,292	
$	9,375		
513.02	
plus	
7.50%	
$	 7,292
$	
$	

9,375	

$	

12,500		

12,500		 669.27	 plus	7.75%	 $	

9,375

--		 911.46	 plus	8.00%	 $	

12,500

$	

$	

0	

$	

of excess over

12,500				7.00%	

$	12,500	$	14,583		
875.00	
plus	
7.25%	
$	 12,500
$	14,583	$	18,750		
1,026.04	
plus	
7.50%	
$	 14,583
$	18,750	$	25,000		
1,338.54	
plus	
7.75%	
$	 18,750
$	

25,000		

--		1,822.92	 plus	 8.00%	

$	

25,000

9,615

Withholding - Semi-Monthly payroll period

IF THE taxable income is	
	
Over	
But not over	
$	

0	

$	

The amount to be
withheld shall be	

of excess over

4,167				7.00%

$	4,167	
$	5,208		
291.67	
plus	
7.25%	
$	 4,167
$	5,208	
$	6,250		
367.19	
plus	
7.50%	
$	 5,208
$	
$	

Withholding - Monthly payroll period
The amount to be
withheld shall be	

--		 709.13	 plus	8.00%	 $	

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $208.00

6,250	

$	

10,417		

10,417		 445.31	 plus	7.75%	 $	

6,250

--		 768.23	 plus	8.00%	 $	

10,417

Withholding - Monthly payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $417.00
IF THE taxable income is	
	
Over	
But not over	

9,615		

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $417.00
IF THE taxable income is	
	
Over	
But not over	
$	

0	

$	

$	

8,333	

$	

The amount to be
withheld shall be	

of excess over

8,333				7.00%	
10,417		 583.33	 plus	7.25%	 $	

8,333

$	10,417	$	12,500		
734.38	
plus	
7.50%	
$	 10,417
$	12,500	$	20,833		
890.63	
plus	
7.75%	
$	 12,500
$	

20,833		

MARYLAND EMPLOYER WITHHOLDING
12

--		1,536.46	 plus	 8.00%	

$	

20,833

Percentage method of withholding for
2.25 PERCENT LOCAL INCOME TAX
Payroll
period

Amount
of one
exemption
			
Weekly	
$	
61.54	
Bi-weekly	
$	
123.08	
Semi-monthly	 $	
133.33	
Monthly	
$	
266.67	
Quarterly	
$	
800.00	
Annually	
$	 3,200.00	
Daily	
$	
8.77	

15% allowance for
Standard Deduction*
MIN	
$	
32.69	
$	
65.38	
$	
70.84	
$	
141.67	
$	
425.00	
$	 1,700.00	
$	
4.66	

MAX
$	
49.09
$	
98.08
$	
106.25
$	
212.50
$	
637.50
$	 2,550.00
$	
6.99

FORMULA

Total wages (before any deductions)
LESS	

Allowance for Standard Deduction (15% of wages for
payroll period with a minimum and maximum as set
forth for the particular payroll period)

LESS	Value of exemptions (number of exemptions times
the allowable amount for one exemption as shown
for the applicable payroll period)
Equals	

TAXABLE INCOME

*	 The standard Deduction is 15% of the gross income with a
minimum of $1,700 and a maximum of $2,550.

Note: The number of exemptions to be used in this formula
is determined from the Form MW507 (Maryland Employee
Exemption Certificate) filed by your employee. Form MW507 is
available on our Web site at www.marylandtaxes.gov.

(a) Married Filing Joint or Head of Household

(b) Single including Married Filing Separately or Dependent

Withholding - Quarterly payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $1,250.00
IF THE taxable income is	
	
Over	
But not over	
$	

0	

$	

The amount to be
withheld shall be	

of excess over

37,500				7.00%	

Withholding - Quarterly payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $1,250.00
IF THE taxable income is	
	
Over	
But not over	
$	

0	

$	

The amount to be
withheld shall be	

of excess over

25,000				7.00%

$	37,500	$	43,750		
2,625.00	
plus	
7.25%	
$	 37,500

$	25,000	$	31,250		
1,750.00	
plus	
7.25%	
$	 25,000

$	43,750	$	56,250		
3,078.13	
plus	
7.50%	
$	 43,750

$	31,250	$	37,500		
2,203.13	
plus	
7.50%	
$	 31,250

$	56,250	$	75,000		
4,015.63	
plus	
7.75%	
$	 56,250

$	37,500	$	62,500		
2,671.88	
plus	
7.75%	
$	 37,500

$	

$	

75,000		

--		5,468.75	 plus	 8.00%	

$	

75,000

Withholding - Daily payroll period

$	

0	

$	

The amount to be
withheld shall be	

of excess over

412				7.00%

--		4,609.38	 plus	 8.00%	

$	

62,500

Withholding - Daily payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $13.70
IF THE taxable income is	
	
Over	
But not over	

62,500		

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $13.70
IF THE taxable income is	
	
Over	
But not over	
$	

0	

$	

The amount to be
withheld shall be	

of excess over

275				7.00%	

$	275	
$	343		
19.23	
plus	
7.25%	
$	 275
$	412	
$	481		
28.85	
plus	
7.25%	
$	 412	
$	343	
$	412		
24.21	
plus	
7.50%	
$	 343
$	481	
$	618		
33.83	
plus	
7.50%	
$	 481
$	618	
$	824		
44.13	
plus	
7.75%	
$	 618
$	

824		

--		

60.10	 plus	8.00%	 $	

824

Withholding - Annual payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $5,000.00
IF THE taxable income is	
	
Over	
But not over	
$	

0	

$	

The amount to be
withheld shall be	

of excess over

150,000				 7.00%

$	150,000 	 $	175,000		
10,500.00	
plus	
7.25%	$	 150,000
$	175,000 	 $	225,000		
12,312.50	
plus	
7.50%	$	 175,000
$	225,000 	 $	300,000		
16,062.50	
plus	
7.75%	$	 225,000
$	

300,000 		

--		21,875.00	 plus	 8.00%	

$	

300,000

$	412	
$	687		
29.36	
plus	
7.75%	
$	 412
$	

687		

--		

50.65	 plus	8.00%	 $	

687

Withholding - Annual payroll period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $5,000.00
IF THE taxable income is	
	
Over	
But not over	
$	

0	

$	

The amount to be
withheld shall be	

of excess over

100,000				 7.00%

$	100,000 	 $	125,000		
7,000.00	
plus	
7.25%	$	 100,000
$	125,000 	 $	150,000		
8,812.50	
plus	
7.50%	$	 125,000
$	150,000 	 $	250,000		
10,687.50	
plus	
7.75%	$	 150,000
$	

250,000 		

--		18,437.50	 plus	 8.00%	

Lump Sum Distribution of Annual Bonus
The amount to be withheld shall be
8.00%
MARYLAND EMPLOYER WITHHOLDING
13

$	

250,000

Percentage method of withholding for
2.40 PERCENT LOCAL INCOME TAX
Payroll
period

Amount
of one
exemption
			
Weekly	
$	
61.54	
Bi-weekly	
$	
123.08	
Semi-monthly	 $	
133.33	
Monthly	
$	
266.67	
Quarterly	
$	
800.00	
Annually	
$	 3,200.00	
Daily	
$	
8.77	

15% allowance for
Standard Deduction*
MIN	
$	
32.69	
$	
65.38	
$	
70.84	
$	
141.67	
$	
425.00	
$	 1,700.00	
$	
4.66	

MAX
$	
49.09
$	
98.08
$	
106.25
$	
212.50
$	
637.50
$	 2,550.00
$	
6.99

FORMULA

Total wages (before any deductions)
LESS	

Allowance for Standard Deduction (15% of wages for
payroll period with a minimum and maximum as set
forth for the particular payroll period)

LESS	Value of exemptions (number of exemptions times
the allowable amount for one exemption as shown
for the applicable payroll period)
Equals	

TAXABLE INCOME

*	 The standard Deduction is 15% of the gross income with a
minimum of $1,700 and a maximum of $2,550.

Note: The number of exemptions to be used in this formula
is determined from the Form MW507 (Maryland Employee
Exemption Certificate) filed by your employee. Form MW507 is
available on our Web site at www.marylandtaxes.gov.

(a) Married Filing Joint or Head of Household

(b) Single including Married Filing Separately or Dependent

Withholding Daily Period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $13.70.
If taxable net income is:	
	
Over:	
But not over:	
$	

0	

$	

The amount to be
withheld shall be	

of excess over

Withholding Daily Period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $13.70.
If taxable net income is:	
	
Over:	
But not over:	
$	

412				7.15%	

0	

$	

The amount to be
withheld shall be	

of excess over

275				7.15%

$	412	
$	481		
29.46	
plus	
7.40%	
$	 412

$	275	
$	343		
19.64	
plus	
7.40%	
$	 275

$	481	
$	618		
34.55	
plus	
7.65%	
$	 481

$	343	
$	412		
24.73	
plus	
7.65%	
$	 343

$	618	
$	824		
45.05	
plus	
7.90%	
$	 618

$	412	
$	687		
29.98	
plus	
7.90%	
$	 412

$	

$	

824		

--		

61.33	 plus	8.15%	 $	

824

$	

0	

$	

The amount to be
withheld shall be	

of excess over

51.68	 plus	8.15%	 $	

687

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $96
If taxable net income is:	
	
Over:	
But not over:	
$	

2,885				7.15%	

--		

Withholding Weekly Period

Withholding Weekly Period

DO NOT WITHHOLD ON GROSS WAGES LESS THAN $96.
If taxable net income is:	
	
Over:	
But not over:	

687		

0	

$	

The amount to be
withheld shall be	

of excess over

1,923				7.15%

$	2,885	
$	3,365		
206.25	
plus	
7.40%	
$	 2,885

$	1,923	
$	2,404		
137.50	
plus	
7.40%	
$	 1,923

$	3,365	
$	4,327		
241.83	
plus	
7.65%	
$	 3,365

$	2,404	
$	2,885		
173.08	
plus	
7.65%	
$	 2,404

$	4,327	
$	5,769		
31