Maryland Bonus Tax Calculator 2026
Maryland withholds an annual bonus at the top state rate of 6.50% plus your county's highest local rate — 8.75% to 9.80% combined.
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The lump-sum bonus rule
The Comptroller's Maryland Employer Withholding Guide, effective January 2026, instructs that "for lump sum distribution of annual bonus, the withholding amount should be calculated at the highest State tax rate (6.50%), and the highest local tax rate for the county of residence." Maryland's 2026 rate schedules top out at 6.50% on income over $1 million ($1.2 million for joint filers), and every county or Baltimore City adds its own local income tax.
Ten tables for twenty-four local rates
Rather than print 24 local tables, the guide calculates ten — 2.25%, 2.40%, 2.65%, 2.75%, 2.85%, 3.00%, 3.05%, 3.10%, 3.20% and 3.30% — and tells employers to "use the rate that equals or slightly exceeds the actual local income tax rate." Each table's lump-sum bonus percentage is 6.50% plus that local figure, from 8.75% to 9.80%. Baltimore City's 3.20% gives 9.70%: $325.00 of state and $160.00 of local tax on $5,000. Carroll County's 3.03% rounds up to the 3.05% table ($152.50 local); Talbot's 2.40% uses its own table ($120.00); Worcester's 2.25% is the lowest ($112.50).
County changes and nonresidents
Withholding Tax Facts 2026 notes that Allegany and Kent counties adjusted their rates for 2026, and that Anne Arundel and Frederick have graduated local rates; for a bonus their highest rate, 3.20%, applies. Nonresidents who work in Maryland owe no county tax but are withheld at the special 2.25% nonresident rate in its place, so the state and special lines total 8.75% — $112.50 of special nonresident tax on the same bonus.
| Rule | Highest state rate (6.50%) + your county's highest local rate (8.75%–9.80% combined) |
|---|---|
| Valid through | December 31, 2026 |
| Documents | Maryland Employer Withholding Guide (effective January 2026) (Effective January 2026) · Withholding Tax Facts 2026 (COM RAD 098) (Revised 12/25) |
| Agency | Comptroller of Maryland |
| Federal income tax | −$1,100.00 |
| Social Security | −$310.00 |
| Medicare | −$72.50 |
| Maryland income tax | −$325.00 |
| Baltimore City local tax | −$160.00 |
| Net | $3,032.50 |