1. What is the Maryland Salary Tax Calculator?

The Maryland Salary Tax Calculator estimates tax liability based on taxable income, Maryland's 2024-25 tax rates, and FICA contributions. While designed for Maryland, it can be used for comparison purposes in Pakistan.

2. How Does the Calculator Work?

The calculator uses the Maryland tax equation:

Where:

• \( Taxable\ Income \) — Income subject to taxation (dollars)
• \( MD\ 2024-25\ Tax\ Rate \) — Maryland's tax rate for the fiscal year (%)
• \( FICA \) — Federal Insurance Contributions Act tax (dollars)

Explanation: The equation calculates state tax by applying the tax rate to taxable income and then adds the FICA amount.

3. Importance of Tax Calculation

Details: Accurate tax estimation helps in financial planning, budgeting, and understanding take-home pay differences between regions.

4. Using the Calculator

Tips: Enter taxable income in dollars, Maryland's 2024-25 tax rate as a percentage, and FICA amount in dollars. All values must be non-negative.

5. Frequently Asked Questions (FAQ)

Q1: Why use Maryland tax rates for Pakistan?
A: This calculator is primarily for comparison purposes to understand tax differences between regions.

Q2: What are typical Maryland tax rates?
A: Maryland's tax rates range from 2% to 5.75% depending on income brackets (2024-25 rates).

Q3: What is included in FICA?
A: FICA includes Social Security (6.2%) and Medicare (1.45%) taxes up to income limits.

Q4: Are there deductions not accounted for?
A: Yes, this is a simplified calculator and doesn't account for all possible deductions or credits.

Q5: How accurate is this for Pakistan comparisons?
A: While not directly applicable, it helps understand progressive tax systems versus flat rates.