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Taxes
Maryland Payroll Taxes 2026: Complete Overview for Employers
Maryland graduated 2%–5.75% (+ county taxes) income tax, SUI on the first $8,500, and all employer tax obligations explained.
Practical guides on MD payroll taxes, employer registration, SUI, minimum wage, and labor laws — written for small business owners, not accountants.
Written by payroll professionals at Pacific Data Services — trusted since 1969.
Maryland employers must withhold both state income tax (2%–5.75%) and county income tax (2.25%–3.20%), requiring careful tracking of employee residence.
All 23 Maryland counties and Baltimore City levy their own income taxes, adding a layer of complexity to payroll processing.
Maryland’s Family and Medical Leave Insurance (FAMLI) program will require payroll contributions, adding a new obligation for employers.
Maryland graduated 2%–5.75% (+ county taxes) income tax, SUI on the first $8,500, and all employer tax obligations explained.
Get your EIN, register with Maryland, set up withholding, new hire reporting — the complete checklist.
New employer rate 2.6%, experienced range 0.30%–7.50%, wage base $8,500.
Maryland minimum wage $15.00/hr. Maryland’s minimum wage is $15.00/hr for all employers. Tipped employees may be paid $3.63/hr.
IRS classification rules, Maryland-specific considerations, misclassification penalties.
Gusto vs Paychex vs QuickBooks vs ADP — detailed comparison for Maryland small businesses.