Maryland payroll taxes
Every tax withheld from a Maryland paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: oui.doleta.gov, taxfoundation.org, bakerdonelson.com, beancount.io.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| Maryland SUTA | — | 2.6% (new) | $8,500 |
| Family and Medical Leave Insurance (FAMLI) | — | — | No limit |
| Maryland income tax | 2%–6.5% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
State unemployment insurance
Maryland charges new employers 2.6% on the first $8,500 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 0.3% to 7.5%. New employer rate is 2.6% (some sources show 1%-2.6% by industry/table). Wage base fixed by statute.
FAMLI paid-leave contributions begin Jan 1, 2027 (separate program)
Register and file with the Maryland unemployment tax agency.
Paid leave and disability programs
- Family and Medical Leave Insurance (FAMLI): no employee share. No contributions in 2026 (delayed by HB 102, 2025). Contributions start Jan 1, 2027 at 0.9% total split 50/50; employers with <15 employees owe no employer share but must withhold/remit the employee 0.45%. Benefits begin 2028.
Income tax withholding
Maryland has a graduated income tax with 10 brackets, from 2% up to 6.5% on taxable income over $1,000,000 for single filers. All 23 counties + Baltimore City levy local income tax 2.25%-3.3% of MD taxable income (most ~3.0%-3.2%; Baltimore City 3.2%); nonresidents pay 2.25% special nonresident tax
Frequently asked questions
- What payroll taxes do employers pay in Maryland?
- Social Security, Medicare, federal unemployment (FUTA) and Maryland unemployment insurance (SUTA).
- What is the Maryland SUTA wage base for 2026?
- $8,500 per employee.
- Does Maryland require state income tax withholding?
- Yes. Employers withhold Maryland income tax based on the employee's state withholding certificate or federal W-4.