The purpose of tax withholding is to collect income tax at the source, as wages are earned, as part of the state's "pay-as-you-go" plan of income tax collection.
As an employer, you must record sums that are withheld from employee wages in a ledger account to clearly indicate the amount of state tax withheld. These funds must be submitted to the state on the due date assigned to you.
You may use our withholding tables to determine the correct amount of state and local income tax that must be withheld from employee wages. To determine a precise amount to be withheld, use our percentage method tables.
The total income tax required to be withheld on wages for the purposes of the withholding tables and schedules is calculated without regard to the marginal state income tax rates of less than 4.75%.
The wages earned by a spouse of a nonresident U.S. servicemember may be exempt from Maryland income tax under the Military Spouses Residency Relief Act, when the spouse of the servicemember is not a legal resident of Maryland. The income tax withholding exemption may be claimed by filing a revised Form MW507 with their employer. For more information, see Employer Withholding Tax Alert- Important Information for Spouses of U.S. Military Servicemembers