The state requires all employers to withhold both state and local income taxes. Maryland uses federal adjusted gross income as the starting point for determining taxable income for the state. Maryland's graduated income tax for 2008 is as follows.

Single Taxpayers (includes married filing separately, dependents and fiduciaries)

• 2% on taxable income from $1 to $1,000
• 3% on taxable income from $1,001 to $2,000
• 4% on taxable income from $2,001 to $3,000
• 4.75% on taxable income from $3,001 to $150,000
• 5% on taxable income from $150,001 to $300,000
• 5.25% on taxable income from $300,001 to $500,000
• 5.5% on taxable income from $500,001 to $1,000,000
• 6.25% on taxable income over $1,000,000

Joint Taxpayers (includes surviving spouses or heads of household)

• 2% on taxable income from $1 to $1,000
• 3% on taxable income from $1,001 to $2,000
• 4% on taxable income from $2,001 to $3,000
• 4.75% on taxable income from $3,001 to $200,000
• 5% on taxable income from $200,001 to $350,000
• 5.25% on taxable income from $350,001 to $500,000
• 5.5% on taxable income from $500,001 to $1,000,000
• 6.25% on taxable income over $1,000,000

Maryland's 23 counties and Baltimore City impose a personal income tax which is administered and collected by the state. The tax is applied to state taxable income. For the majority of counties, the rate is between 2 and 3 percent.

  Source: Comptroller of Maryland.

Additional tax data for states and Maryland counties can be found in the Comparisons Tool .