1. What is the Maryland Wage Tax Calculator?

This calculator estimates taxes for Maryland residents working in Louisiana, calculating Federal Tax, Louisiana State Tax, and FICA contributions based on income and filing status.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Federal Tax - Calculated using IRS tax brackets
• Louisiana State Tax - 1.85% up to $12,500, 3.5% above
• FICA - Social Security (6.2%) and Medicare (1.45%)

3. Tax Components Explained

Federal Tax: Progressive tax based on income and filing status.
Louisiana State Tax: Graduated rate structure with lower rates for first $12,500.
FICA: Flat rate payroll taxes for Social Security and Medicare.

4. Using the Calculator

Instructions: Enter your annual income and select your filing status. The calculator will estimate your tax burden and net income.

5. Frequently Asked Questions (FAQ)

Q1: Why would a Maryland resident pay Louisiana taxes?
A: This calculator is for Maryland residents who work in Louisiana and may owe taxes to both states.

Q2: Are these tax rates current?
A: Tax rates are based on 2023 figures. Always verify with official sources.

Q3: What about local taxes?
A: This calculator doesn't include local/city taxes which may apply.

Q4: How accurate is this estimate?
A: This provides a general estimate. Actual taxes may vary based on deductions, credits, and other factors.

Q5: What's the Social Security wage base?
A: For 2023, Social Security tax applies only to the first $147,000 of wages.