1. What is the Maryland Salary Paycheck Calculator?

The Maryland Salary Paycheck Calculator estimates your take-home pay (net pay) after accounting for federal tax, Maryland state tax, and FICA contributions. This tool follows ADP's calculation methodology.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Your total earnings before deductions
• Federal Tax — Federal income tax withholding
• MD State Tax — Maryland state income tax
• FICA — Social Security and Medicare taxes (7.65% of gross pay typically)

Explanation: The calculation subtracts all mandatory deductions from your gross pay to determine your actual take-home amount.

3. Importance of Net Pay Calculation

Details: Understanding your net pay helps with budgeting, financial planning, and verifying paycheck accuracy. Maryland has progressive state income tax rates that affect your take-home pay.

4. Using the Calculator

Tips: Enter your gross pay and all deduction amounts in dollars. For most accurate results, use values from your pay stub or ADP payroll system.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross pay and net pay?
A: Gross pay is your total earnings before deductions, while net pay is the amount you actually receive after taxes and other deductions.

Q2: How is Maryland state tax calculated?
A: Maryland has progressive tax rates from 2% to 5.75% based on income brackets, plus local county taxes in some areas.

Q3: What is included in FICA?
A: FICA includes Social Security (6.2%) and Medicare (1.45%) taxes. There's an additional 0.9% Medicare tax for high earners.

Q4: Why might my actual paycheck differ?
A: Other deductions like health insurance, retirement contributions, or wage garnishments would further reduce your net pay.

Q5: Are Maryland taxes higher than other states?
A: Maryland has moderately high state taxes compared to national averages, with both state and local income taxes in some counties.