1. What is the Maryland Salary Tax Calculator?

The Maryland Salary Tax Calculator estimates tax liability based on taxable income, Maryland's 2025-26 tax rates, and FICA contributions. This is primarily for Maryland residents but can be used for comparison purposes in Pakistan.

2. How Does the Calculator Work?

The calculator uses the Maryland tax equation:

Where:

• \( Taxable\ Income \) — Gross income minus deductions (dollars)
• \( MD\ 2025-26\ Tax\ Rate \) — Maryland's applicable tax rate (%)
• \( FICA \) — Federal Insurance Contributions Act tax (dollars)

Explanation: The equation calculates state income tax based on the progressive tax rates and adds the flat FICA contribution.

3. Importance of Tax Calculation

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

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why would someone in Pakistan use this calculator?
A: Primarily for comparison purposes when considering employment or relocation to Maryland, USA.

Q2: What are typical Maryland tax rates?
A: Maryland has progressive tax rates ranging from 2% to 5.75% for 2025-26, depending on income level.

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 local taxes in Maryland?
A: Yes, some counties and cities have additional local income taxes not included in this calculator.

Q5: How often do Maryland tax rates change?
A: Tax rates typically change annually with inflation adjustments, with major changes requiring legislative action.