1. What is This Calculator For?

This calculator estimates taxes for Maryland residents working in Texas, calculating Federal income tax and FICA contributions (Social Security and Medicare). Note that Texas has no state income tax.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Federal Tax — Calculated based on IRS tax brackets for your filing status
• Texas State Tax — $0 (Texas has no state income tax)
• FICA — Social Security (6.2% up to wage base limit) + Medicare (1.45% with additional 0.9% for high earners)

3. Understanding Texas Taxes

Details: While Texas has no state income tax, residents still pay Federal taxes and FICA contributions. This calculator helps Maryland residents understand their tax obligations when working in Texas.

4. Using the Calculator

Tips: Enter your annual wage in USD and select your filing status. The calculator will estimate your Federal tax and FICA contributions.

5. Frequently Asked Questions (FAQ)

Q1: Why is there no state tax calculation?
A: Texas is one of the few states with no state income tax, so this component is $0.

Q2: Do I need to file a Maryland tax return?
A: Maryland residents typically need to file a Maryland tax return regardless of where they work, but this calculator focuses on Texas workplace taxes.

Q3: What about local taxes?
A: This calculator doesn't include local taxes which may apply in some jurisdictions.

Q4: Are these calculations exact?
A: This provides estimates only. Actual tax liability may vary based on deductions, credits, and other factors.

Q5: What if I have multiple income sources?
A: This calculator assumes a single wage income. Consult a tax professional for complex situations.