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Maryland combines county income tax across 24 jurisdictions, PFML contributions since 2023 with benefits launching July 2026, and DC-area competitive salaries. Rippling handles MD Comptroller, DLLR, PFML, and county tax filings.
Maryland is a high-income DC-area state with a large federal government and contracting workforce, major healthcare and biotech sectors (NIH campus in Bethesda), and a growing technology industry in the Baltimore-Washington corridor. Maryland payroll is defined by a progressive state income tax (top 5.75%), county income tax (2.25–3.2% based on employee’s home county — 24 jurisdictions), a PFML program with contributions underway since October 2023 and benefits launching July 2026, and mandatory paid sick leave.
Rippling’s Maryland payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| MD SUI (DLLR) | New employer 2.3% | On first $8,500 of wages (2024) |
| MD PFML (employer) | 0.45% of wages | Employers with 15+ employees; under 15 pay 0% employer share |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation | Varies by risk class | Mandatory |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| MD State Income Tax | 2%–5.75% | Progressive; top rate 5.75% on income above $250,000 single |
| MD County Income Tax | 2.25%–3.2% | Each of MD’s 23 counties + Baltimore City; based on employee home county |
| MD PFML (employee) | 0.45% of wages | Contributions began October 1, 2023; benefits begin July 1, 2026 |
| Maryland Income (Single) | MD State Rate |
|---|---|
| Up to $1,000 | 2% |
| $1,001–$3,000 | 3%–4% |
| $3,001–$100,000 | 4.75% |
| $100,001–$250,000 | 5%–5.5% |
| Above $250,000 | 5.75% |
Plus county/Baltimore City local income tax (2.25–3.2%) based on employee home county. Total effective rate can reach ~8.95% for high earners in high-rate counties.
Final Pay: Maryland requires final pay on the next regularly scheduled payday. Accrued vacation: MD Wage Payment and Collection Law treats promised vacation as wages if the employer’s policy provides for payout.
Maryland has 23 counties plus Baltimore City, each with its own local income tax rate ranging from 2.25% to 3.2%. Employers withhold county income tax based on the employee’s county of residence (not work location). The county rate is remitted to the MD Comptroller alongside state income tax. Rippling determines the correct county rate from the employee’s home address at onboarding.
Maryland’s PFML program began collecting contributions from employers (15+ employees) and employees on October 1, 2023. Total contribution: 0.90% of wages (employer 0.45% for 15+ + employee 0.45%). Benefits begin July 1, 2026: up to 12 weeks family leave + 12 weeks medical leave at 90% of wages. Rippling manages PFML withholding and quarterly DLLR remittances.
Maryland’s minimum wage is $15.00/hour for all employers from January 1, 2024 (small and large employers now at parity). Montgomery County has a higher local minimum: $17.15/hour for large employers (51+ employees) from July 1, 2024.
Maryland does not have a separate state SDI program outside of PFML. The PFML medical leave component covers disability-like needs once benefits begin in July 2026. Until then, short-term disability coverage relies on employer-provided voluntary plans.
