Bonus Tax Calculator — Maryland (2026)
Bonuses in Maryland are taxed as supplemental wages: the employer usually withholds a flat 22% federal, plus 7.65% FICA and Maryland state withholding. Withholding is not the final tax; the true cost is settled on your return. Enter your bonus to see both. Maryland uses a progressive income tax with 8 brackets running from 2.00% up to 5.75%, applied after a state standard deduction of $2,550.
Maryland Bonus Tax Calculator
The gross bonus before withholding.
Percentage method vs aggregate method
Under the percentage method the bonus is separated from regular pay and hit with the flat 22% federal rate (37% above $1 million of supplemental wages in a year). Under the aggregate method the employer combines the bonus with your normal check and withholds at your marginal rate — which can temporarily withhold far more than 22%.
Either way the bonus is ordinary income. If your marginal federal bracket is 24% or higher, the 22% flat withholding leaves you short at filing time; if you are in the 12% bracket, you are over-withheld and get it back as a refund.
The Maryland layer on bonuses
Maryland taxes bonus income at the same progressive brackets as salary — up to 5.75%. A $10,000 bonus therefore carries roughly $575 of Maryland tax at the top rate, on top of federal and FICA.
Every Maryland county (and Baltimore City) charges an additional county income tax of 2.25%–3.20%. Baltimore City: 3.20%. This estimate excludes local tax.
Reducing the tax on a Baltimore bonus
Deferring part of the bonus into a 401(k) or HSA cuts federal and Maryland income tax immediately, though FICA still applies. Some employers allow a separate bonus deferral election — ask payroll before the payment date, not after.
Timing matters too: pushing a bonus into January shifts the tax year, useful if this year included unusually high income from biotech work or an equity event.
Local and payroll taxes Maryland adds on top
County income tax of 2.25%–3.20% is withheld on top of the state rate depending on where you live. That deduction sits outside the federal and state income tax lines, so build it into your own budget on top of the numbers above.
Every Maryland county (and Baltimore City) charges an additional county income tax of 2.25%–3.20%. Baltimore City: 3.20%. This estimate excludes local tax.
Bonuses are wages, so every local layer that applies to your regular Maryland paycheck applies to the bonus too — which is why a supplemental payment often nets a smaller share than your salary does.
Working across a state line from Maryland
Maryland holds income-tax reciprocity agreements with District of Columbia, Pennsylvania, Virginia and West Virginia. If you commute between them, your wages are taxed only by your state of residence — file the exemption certificate with your employer so the wrong state is not withheld from every paycheck.
Remote and hybrid work complicates this further: most states tax income where the work is physically performed, so a Baltimore resident spending part of the year at a client site in Virginia may owe a nonresident return there. Keep a day-count log if you split time between states.
The rest of your Maryland tax bill
Maryland charges a 6% state sales tax, homeowners pay an average effective property tax of 1.05% of market value, and the minimum wage in force during 2026 is $15.00 an hour.
6% statewide with no local sales tax — the counties tax income instead.
Income tax is only one part of a state's take. Maryland recovers revenue through sales and property tax as well, which is why headline income tax rates alone are a poor guide to how far a salary really goes. Maryland exempts Social Security and offers a pension exclusion above $36,000 for filers 65+.
Maryland vs Virginia on the same salary
On a $75,000 salary, a single filer keeps about $58,204 a year in Maryland against roughly $58,026 in Virginia — a difference of $177, or $15 a month.
Effective combined rates are 22.4% in Maryland and 22.6% in Virginia. Set that gap against living costs: index 115 here versus 102 there, with property tax at 1.05% and 0.87% respectively.
Maryland income tax brackets 2026 (single filer)
| Taxable income | Rate |
|---|---|
| $0 – $1,000 | 2.00% |
| $1,000 – $2,000 | 3.00% |
| $2,000 – $3,000 | 4.00% |
| $3,000 – $100,000 | 4.75% |
| $100,000 – $125,000 | 5.00% |
| $125,000 – $150,000 | 5.25% |
| $150,000 – $250,000 | 5.50% |
| $250,000 and up | 5.75% |