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PaycheckDesk

Maryland · tax year 2026

Does Maryland tax tips and overtime?

Neither deduction reduces your state tax.

Maryland taxes federal AGI less a $3,350 standard deduction ($6,700 joint) and a $3,200 exemption per person, at rates from 2% to 6.5%. Neither federal deduction reduces it. Important: your county or Baltimore City adds its own income tax of 2.65% to 3.30% on the same income, which is NOT included here — your real Maryland bill is meaningfully higher.

What it means on a real paycheck

Take a single filer earning $50,000 a year, $8,000 of it in tips. Against the same person with no tips to declare, the federal deduction is worth $960.

In Maryland it is worth nothing extra. The state bill is identical either way, so $960 is the whole of it.

How Maryland works out the tax

Maryland charges graduated rates from 2% up to 6.5%, across 10 bands, after a standard deduction of $3,350 single or $6,700 filing jointly and an exemption that shrinks as income rises. It begins from your federal adjusted gross income and applies its own reliefs from there.

Your own numbers

Your gross pay before any taxes or deductions.

Married filing separately cannot claim these deductions at all, so it is not offered here.

Traditional, pre-tax. Lowers income tax but not Social Security or Medicare.

Pre-tax cafeteria-plan premiums. These lower income tax and FICA.

Take-home pay per paycheck (26 per year)

$1,901

$49,416 a year after taxes and deductions.

Maryland taxes federal AGI less a $3,350 standard deduction ($6,700 joint) and a $3,200 exemption per person, at rates from 2% to 6.5%. Neither federal deduction reduces it. Important: your county or Baltimore City adds its own income tax of 2.65% to 3.30% on the same income, which is NOT included here — your real Maryland bill is meaningfully higher. See what that costs you →

Where the money goes each year

Gross salary$62,000
Federal income taxTop rate applied: 12%−$5,260
Social Security−$3,844
Medicare−$899
State income tax (MD)Graduated brackets on $55,450 of state taxable income−$2,581
Take-home pay$49,416

Per paycheck

Gross$2,385
Taxes withheld−$484
Net$1,901

Estimate for tax year 2026 assuming the standard deduction, no dependents or credits, and even pay across the year. Your employer withholds using your Form W-4, so an individual paycheck can differ. Effective total tax rate: 20.3%. Not tax advice.

Where these figures come from

Maryland’s rates and reliefs here were taken from Maryland’s own publication and last checked on 2026-08-01. A state appears in this calculator only once its figures have been read off that state’s own paperwork and covered by tests — never estimated, and never copied from another site.

Figures on this page are for tax year 2026 and were last checked against the primary sources on 2026-07-31. See our sources. This is an estimate, not tax advice.

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