Bonus tax calculator Maryland
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  • 1

    Pay Details

  • 2

    Exemptions

  • 3

    Federal Information

  • 4

    State Information

  • 5

    Locale Information

  • 6

    Voluntary Deductions

  • 7

    Calculate Paycheck

Calculate a flat bonus for your employee in seconds

Our flat bonus calculator can help you find the correct amount of federal and state taxes to withhold in a few clicks. Simply click the button below, enter your employee’s gross bonus amount on the next page, and we’ll do the work.

How much did your employee earn?

Bonus: Enter the total bonus pay your employee has earned this year. This is the amount of their bonus before taxes and deductions are withheld.

Gross Pay YTD: Enter the total gross pay your employee has earned this year, prior to this paycheck. Normally, this can be found on the last pay stub.

Check Date: Enter the check date that should appear on your paycheck.

Is your employee exempt from any taxes?

Federal: In some cases, public and governmental employees are exempt from federal taxes. Check “yes” if your employee is exempt and Federal taxes should not be deducted.

FICA: In some cases, public and governmental employees are exempt from FICA. Check “yes” if your employee is exempt and FICA taxes should not be deducted.

Medicare: In some cases, public and governmental employees are exempt from Medicare taxes. Check “yes” if your employee is exempt and Medicare taxes should not be deducted.

Please enter your employee’s withholding information.

Additional Federal Withholding: If your employee has asked to have additional funds withheld from each paycheck, enter the amount here. If they have not, enter “0”.

Round Federal Withholding: Would you like us to round your employee’s withholding totals to the nearest dollar? (It’s not required, but it is permitted)

Now, add information for their state.

State: Select the state where withholding should be calculated. It should be the same state where the work was performed.

Now, add locale information if applicable.

Does your employee have any voluntary deductions?

Please add any additional deductions for items like health insurance, 401(k), HSAs/FSAs, or any other benefits.


Select type of deduction needed:

401(k)

Add deduction

HSA

Add deduction

Custom

Add deduction

Let’s finish crunching the numbers!

Click the button below to see your paycheck calculated.

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Updated: June 29, 2025

The Maryland bonus tax calculator at the top of this page helps employers quickly estimate employee take-home pay (also known as net pay) for bonuses.

Does Maryland tax bonuses?

Yes. In Maryland, bonuses are taxed the same as regular wages. Employers must also apply local tax rates based on the employee’s county of residence. Commissions and other supplemental wages are treated as regular income for withholding purposes.

How to calculate bonus tax in Maryland

Add the bonus to the employee’s regular wages and use Maryland’s tax tables for both state and local rates (which is how the bonus calculator above crunches the numbers). Maryland does allow for a supplemental rate when figuring this out.

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What is the bonus tax rate in Maryland?

Maryland has a progressive state income tax rate from 2% to 5.75%, plus local rates ranging from 2.25% to 3.2%. The takeaway is that combined rates may exceed 8.95%.

 

How can employers in Maryland pay bonuses to employees?

Bonuses can be paid via:

  • Check
  • Direct deposit
  • Pay card

How do bonuses work in Maryland?

Employers must withhold both state and local taxes based on the employee’s residence and report bonuses as wages on Form W-2.

 

Why are bonuses taxed differently than standard pay?

They’re not — all compensation is subject to the same withholding structure unless paid to nonresidents with special rules.

 

How much tax is taken out of a bonus in Maryland?

  • Federal: 22%
  • State + Local: up to 8.95%
  • Combined: as much as 30.95%

 

Resources for Maryland employers

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