How Much Is $100,000 Taxed in Maryland?

When earning $100,000 annually in Maryland, you’ll want to understand how much of your income will go toward taxes. Maryland imposes state income taxes, county-level taxes, and federal income taxes, all of which will impact your take-home pay. This article breaks down the components of taxation for a $100K salary in Maryland.

Federal Income Taxes

The federal government uses a progressive tax system with multiple brackets. For 2024, the tax brackets are as follows:

• 10%: Up to $11,000
• 12%: $11,001 to $44,725
• 22%: $44,726 to $95,375
• 24%: $95,376 to $182,100

On $100,000, portions of your income will fall into these brackets. Here's a rough calculation for single filers:

1. 10% on the first $11,000 = $1,100
2. 12% on the next $33,725 ($44,725 - $11,000) = $4,047
3. 22% on the next $50,650 ($95,375 - $44,725) = $11,143
4. 24% on the remaining $4,625 ($100,000 - $95,375) = $1,110

Total Federal Taxes: $17,400 (approximately, before deductions and credits)

Additionally, you might qualify for certain deductions or tax credits, such as the standard deduction or itemized deductions, which can reduce your taxable income. For 2024, the standard deduction for single filers is $13,850. Factoring in this deduction can lower the taxable income and, consequently, the total federal tax owed.

Maryland State Income Taxes

Maryland’s state income tax is also progressive. For 2024, the brackets are:

• 2.00%: Up to $1,000
• 3.00%: $1,001 to $2,000
• 4.00%: $2,001 to $3,000
• 4.75%: $3,001 to $100,000
• 5.00%: Over $100,000

For a $100,000 salary, you’ll pay:

1. 2.00% on the first $1,000 = $20
2. 3.00% on the next $1,000 ($2,000 - $1,000) = $30
3. 4.00% on the next $1,000 ($3,000 - $2,000) = $40
4. 4.75% on the remaining $97,000 = $4,607.50

Total Maryland State Taxes: $4,697.50 (approximately)

Maryland’s state tax rates make it relatively competitive compared to other states with high-income earners, but it’s essential to factor in additional local taxes.

Local County Taxes

Maryland counties impose additional income taxes, which range from 2.25% to 3.20%. For this example, let’s assume you live in Montgomery County, which has a 3.20% rate:

Local Taxes: $100,000 x 3.20% = $3,200

If you live in a county with a lower rate, such as Worcester County (2.25%), your local tax liability would be reduced significantly. This highlights the importance of knowing your local tax rate when estimating total tax obligations.

Other Taxes

In addition to income taxes, you are also subject to payroll taxes, which fund Social Security and Medicare:

• Social Security Tax: 6.2% of income up to $160,200 = $6,200
• Medicare Tax: 1.45% of total income = $1,450

Total Payroll Taxes: $7,650

For high earners above $200,000, an additional 0.9% Medicare surtax applies to income over this threshold. While this does not apply to a $100,000 salary, it’s worth considering as income increases.

Total Tax Burden

Let’s add everything together:

1. Federal Income Taxes: $17,400
2. Maryland State Taxes: $4,697.50
3. Local County Taxes: $3,200
4. Payroll Taxes (Social Security and Medicare): $7,650

Total Taxes: $32,947.50

Take-Home Pay

Subtracting the total tax burden from your gross income:

$100,000 - $32,947.50 = $67,052.50

This means you’ll take home about $67,052 after taxes if you earn $100,000 annually and live in Maryland.

Tax Reduction Strategies

To minimize your tax liability, consider the following strategies:

1. Maximize Retirement Contributions: Contribute to a 401(k) or IRA to reduce taxable income. For 2024, the contribution limit for 401(k) plans is $23,000 if you’re under 50 and $30,000 if you’re 50 or older.
2. Claim Deductions: Take advantage of deductions for mortgage interest, student loan interest, or charitable donations. These can significantly reduce taxable income.
3. Use Tax Credits: Explore credits like the Child Tax Credit or the Earned Income Tax Credit if applicable. Credits directly reduce the amount of taxes owed, making them more valuable than deductions.
4. Adjust Withholding: Review your W-4 form to ensure the correct amount of taxes is withheld from your paycheck. This helps avoid owing a large sum during tax season.
5. Work with a Professional: A tax professional can help identify additional savings opportunities, including lesser-known deductions or credits.

By implementing these strategies, you can maximize your take-home pay and better manage your finances.

Final Thoughts

Understanding your tax obligations in Maryland is essential for financial planning. With federal, state, and local taxes, plus payroll deductions, a $100,000 salary will leave you with approximately $67,052 after taxes. By leveraging tax-saving strategies, you can further optimize your income and reduce the overall tax burden. For personalized advice, consult a tax professional familiar with Maryland’s tax laws.