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Maryland residents working in Delaware

 

Maryland State Tax

Caution! If you do not provide the number for the corresponding local area rate, Sage 100 Contractor does not calculate the county taxes and add them to the state tax.

Employers should use Form MW 507, Employee’s Maryland Withholding Certificate.

Maryland residents are subject to a county tax in addition to the state income taxes. Maryland County taxes are calculated as a percentage of taxable income. To calculate the county taxes, set up the employee record of each Maryland resident to compute the correct local tax.

For example, if the local area is Allegany, enter 70 in the Calculation tab in the 5-2-1 Employees window.

Maryland county tax rates

 

County

Tax Rate 2022

Tax Rate 2023

 

Table #

Allegany

3.05

3.03

Code 70

Anne Arundel (to $50,000)

 

2.70

Code 50

Anne Arundel

2.81

2.81

Code 50

Baltimore City

3.20

3.20

Code 78

Baltimore County

3.20

3.20

Code 55

Calvert

3.00

3.00

Code 51

Caroline

3.20

3.20

Code 53

Carroll

3.03

3.03

Code 66

Cecil

3.00

2.80

Code 64

Charles

3.03

3.03

Code72

Dorchester

3.20

3.20

Code 52

Frederick
(married, joint filing, income of $100,000 or less)

 

2.75

Code 74

Frederick
(single or separately filing, dependents, income of $50,000 or less)

 

2.75

Code 74

Frederick

2.96

2.96

Code 74

Garrett

2.65

2.65

Code 54

Harford

3.06

3.06

Code 76

Howard

3.20

3.20

Code 48

Kent

3.20

3.20

Code 49

Montgomery

3.20

3.20

Code 56

Prince George’s

3.20

3.20

Code 58

Queen Anne’s

3.20

3.20

Code 68

St. Mary’s

3.10

3.00

Code 80

Somerset

3.20

3.20

Code 60

Talbot

2.40

2.40

Code 35

Washington

3.00

2.95

Code 62

Wicomico

3.20

3.20

Code 82

Worchester

2.25

2.25

Code 20

Non-resident

2.25

2.25

No code

Note: For details about Ann Arundel and Frederick counties, see the Maryland taxes website.

Use the status that applies to each employee.

Marital statuses

Status

Description

1-Single

Single including Married Filing Separately or Dependent

2-Married

Married Filing Joint or Head of Household

3-Head of Household

Married Filing Joint or Head of Household

4-Married/Separate

Single including Married Filing Separately or Dependent

5-Married/Joint

Married Filing Joint or Head of Household

To set up payroll calculations on an employee for Maryland State Tax:

  1. Open 5-2-1 Employees.
  2. Using the data control, select the employee.
  3. Click the Calculations tab.
  4. In the Marital column, in the cell of the Maryland Income Tax row, enter the corresponding marital status number.
  5. In the Table# column, in the cell of the Maryland Income Tax row, enter the corresponding Maryland local tax number from the table above.
  6. On the menu bar, click File, then click Save.