Maryland Bonus Pay Tax Calculator

2026 Maryland bonus withholding

Maryland Bonus Pay Tax Calculator

Estimate take-home bonus pay with current federal, Maryland state, county, nonresident, FICA, and employer unemployment rules - or gross up a promised net bonus.

Calculate a Maryland paycheck Explore TimeTrex payroll

Bonus inputs

Use gross-to-net for a planned bonus or net-to-gross when a take-home amount was promised.

Gross bonus amount Enter the taxable bonus to be paid.

Supplemental pay type

Federal withholding method

Payment presentation A payment not separately stated uses combined-wage logic.

Regular wages had federal income tax withheld

The optional federal 22% method generally depends on federal withholding from regular wages in the current or prior year.

Pay frequency

YTD Social Security wages from this employer Used only for the 2026 $184,500 Social Security wage-base check.

YTD Medicare wages from this employer Used for the employer's $200,000 Additional Medicare withholding threshold.

YTD supplemental wages before this payment

Regular wages for this pay period Used by federal and Maryland combined-wage estimates.

Federal W-4 settings

Federal filing status

Use higher W-4 Step 2 checkbox tables

Annual credits from W-4 Step 3

Annual other income from W-4 Step 4(a)

Annual deductions from W-4 Step 4(b)

Extra federal withholding per regular check

Extra federal withholding on this payment

Maryland state and local withholding settings

Maryland withholding treatment Maryland expressly publishes a county-specific flat rate for a lump-sum annual bonus. Other wages use the regular percentage tables.

Maryland residence / withholding table The official percentage-table rate is resolved automatically.

Maryland filing status Used by the combined-wage percentage method and tiered county selection.

Projected 2026 Maryland taxable net income before this payment Used only to choose the regular withholding table for tiered Anne Arundel or Frederick County. Annual-bonus mode uses each county's highest local rate.

MW507 line 1 exemptions Each exemption is $3,200 annually in the 2026 percentage method. If no MW507 is supplied, Maryland generally uses one exemption.

Maryland-taxable bonus percentage Use 100% for an ordinary fully Maryland-taxable bonus. Multi-state sourcing can require a different allocation.

Additional Maryland withholding on this payment Models an agreed extra amount, such as MW507 line 2.

Valid full MW507 exemption or reciprocity treatment applies

Select only when payroll has a valid certificate supporting no Maryland withholding. Pennsylvania reciprocity can leave local withholding and requires case-specific treatment.

Employer cost estimate settings

YTD Maryland UI wages before bonus Used only for the employer-side $8,500 Maryland UI wage-base estimate.

Maryland employer UI rate Editable 2.60% default uses the upper end of Maryland's 2026 new-employer range. Use the assigned rate; 2026 contributory rates range from 0.30% to 7.50%.

Maryland UI-taxable bonus percentage A cash bonus is generally reportable UI wages. This employer-side control does not change employee net pay.

YTD FUTA wages before bonus Used only for the employer-side $7,000 FUTA wage-base estimate.

Estimated net FUTA rate Default assumes the maximum 5.4% state unemployment credit. Final credit-reduction status is determined later.

Estimated net bonus

Federal flat method; Maryland annual-bonus table.

Net bonus $0.00 The estimate updates as inputs change.

Gross bonus $0.00

Total withheld $0.00

Effective withholding 0.00%

Employer cost estimate $0.00

Withholding line	Amount

Federal method comparison

Federal method	Net bonus	Total withheld

What this calculator includes

Maryland's actual annual-bonus rule

Apply 6.50% state withholding plus the official county table rate, including rounded-up table buckets, tiered-county maximums, and the 2.25% special nonresident tax.

Combined-wage alternative

Estimate ordinary percentage-method withholding with 2026 state brackets, the $3,400 standard-deduction allowance, $3,200 per MW507 exemption, filing status, and county table.

Separate employee and employer taxes

Track Social Security, Medicare, Additional Medicare, Maryland UI, FUTA, and employer matching taxes with independent annual wage bases.

This is a 2026 paycheck withholding estimate for a taxable cash bonus paid to a W-2 employee. Withholding is a prepayment, not final federal, Maryland, or local tax liability. Pretax deductions, retirement deferrals, residency facts, reciprocity certificates, credits, multi-state sourcing, special wage exclusions, and payroll-provider rounding can change the actual paycheck.

Maryland bonus withholding FAQ

What rate does Maryland use for an annual bonus?

The 2026 guide directs employers to use the 6.50% top state rate plus the applicable official local percentage-table rate. The combined rate is 8.75% to 9.80% for ordinary resident and taxable nonresident cases.

Why can the table rate exceed the county's actual rate?

Maryland's published percentage tables match or approximate local rates without going below them. For example, Carroll's actual 3.03% rate maps to the 3.05% withholding table, producing 9.55% annual-bonus withholding.

How are Anne Arundel and Frederick handled?

Their ordinary local rates vary with Maryland taxable income and filing status. For a lump-sum annual bonus, the state guide says to use the county's highest local rate, so each maps to 3.20% local and 9.70% combined.

What does the nonresident option mean?

It is for a taxable, nonreciprocal Maryland nonresident. The table includes the 2.25% special nonresident tax instead of county tax. Valid reciprocity or other MW507 exemptions can change withholding to zero or require partial treatment.

Why is there a Delaware/nonreciprocal-state option?

Maryland residents working and paying withholding in Delaware or another nonreciprocal state use a separate credit table. Its published annual-bonus rate is 3.30%; it should not be confused with a Delaware resident working in Maryland.

Does Maryland unemployment tax reduce the bonus?

No. Maryland UI is employer-paid. For 2026, contributory rates range from 0.30% to 7.50%, new-employer rates range from 1.0% to 2.6%, and only the first $8,500 of covered wages is taxable.

Is Maryland FAMLI deducted in 2026?

No state-plan FAMLI contribution applies to 2026 wages. Payroll contributions begin January 1, 2027 at a 0.90% total state-plan rate, with up to half withheld from employees.

Is 22% the employee's final federal tax rate?

No. It is an optional federal withholding method for qualifying separately identified supplemental wages. Final income-tax liability is reconciled on the employee's tax returns.

Research sources

Rates, formulas, and effective dates are based on primary official material checked July 20, 2026. Recheck year-specific figures before using this calculator for a later payment year.

IRSPublication 15 (Circular E), 2026

IRSPublication 15-T, 2026

Social Security Administration2026 contribution and benefit base

Comptroller of Maryland2026 Maryland Employer Withholding Guide

Comptroller of Maryland2026 Maryland Withholding Tax Facts

Comptroller of Maryland2026 rates and percentage tables

Comptroller of Maryland2026 state and local rate memo

Comptroller of Maryland2026 Form MW507

Maryland General AssemblyTax-General section 10-908

Maryland Department of Labor2026 unemployment rates and wage base

Maryland FAMLIContribution timing and 2027 rate

TimeTrexMaryland payroll tax calculator

Move from a bonus estimate to a complete Maryland paycheck

Use the state-specific payroll calculator for a full paycheck estimate, or connect approved earnings, tax settings, direct deposit, pay stubs, and audit-ready records in TimeTrex payroll.

Calculate a Maryland paycheck Explore TimeTrex payroll

Disclaimer: This calculator provides estimated withholding figures for educational and informational purposes only and does not constitute official tax, legal, or accounting advice. Calculations reflect 2026 federal supplemental withholding rules, Maryland’s 6.50% state annual-bonus rate, official county percentage tables, special nonresident rules, and standard FICA parameters; actual take-home pay or employer tax liability may vary depending on pretax deductions, Form MW507 exemptions, multi-state income allocation, or payroll-provider rounding.

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Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

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Maryland Bonus Pay Tax Calculator