Maryland Salary Calculator

Maryland Form MW507 Withholding Estimator

Estimate your payroll tax allowances, check your withholding status, and calculate how allowances reduce state and county taxes on your paycheck.

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MW507 Withholding Estimator

Maryland · 2026 tax year · W-4 allowances

$
  • Weekly (52x/year)
  • Bi-Weekly (26x/year) (Mostly selected)
  • Semi-Monthly (24x/year)
  • Monthly (12x/year)
Updates as you type

How it works

Follow the exact steps to get your result instantly and privately.

STEP 1

Input filing and residency status

Select whether you are filing as Single or Married, and choose your county of residence. County of residence sets the local piggyback tax rate.

How Maryland MW507 Withholding Is Estimated

Unlike federal withholding (which has moved away from allowances), Maryland still uses a traditional allowance-based withholding certificate. Each allowance you claim on Form MW507 acts as a personal exemption, reducing your annual taxable wages by $3,200 (for 2026). This translates directly into tax savings per paycheck, calculated by multiplying the exemption value ($3,200) by your combined Maryland state and county tax rate, and dividing by your annual pay periods.

Tax Breakdown Layers
Calculation Model
v2026.1
Annual Taxable Income Reduction = Allowances × $3,200
Annual Tax Savings = Reduction × (State Rate + County Rate)
Paycheck Savings = Annual Tax Savings ÷ Pay Periods
Live Example
Verified

Example: Single filer, Montgomery County (3.30% local rate + 4.75% progressive state rate = 8.05% total rate), bi-weekly pay (26 periods). Claiming 2 allowances reduces taxable annual income by $6,400. Annual tax savings = $6,400 × 8.05% ≈ $515. Paycheck savings = $515 ÷ 26 ≈ $19.81 more take-home pay per paycheck.

Worked examples

Single filer claiming 1 allowance (Montgomery County)

📋
1 allowance = $3,200 tax exclusion at 8.05% total rate
ResultAnnual savings: $257.60 | Bi-weekly paycheck increase: $9.91

Married couple claiming 3 allowances (Howard County)

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3 allowances = $9,600 tax exclusion at 7.95% total rate
ResultAnnual savings: $763.20 | Bi-weekly paycheck increase: $29.35

Non-resident commuter from Virginia claiming exemption

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Exempt status under DMV Reciprocity rules
ResultMaryland withholding: 0% (Tax withheld for Virginia instead)
DID YOU KNOW?

| Quick facts

  • Each allowance claimed on Form MW507 reduces your annual taxable income base by $3,200.

  • If you do not submit Form MW507, your employer will default to 0 allowances and the maximum county tax rate of 3.30%.

  • Residents of Virginia, Washington D.C., West Virginia, and Pennsylvania who commute to Maryland are exempt from Maryland state tax withholding under reciprocity.

  • You can submit a new Form MW507 to your payroll department at any point during the year to update your allowances.

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Frequently asked questions

Form MW507 is the Employee's Maryland Withholding Exemption Certificate. You complete it when starting a new job to determine how much state and local county tax is withheld from your paycheck.

Claiming 0 allowances results in the maximum amount of tax being withheld. This will make your paycheck smaller but reduces the risk of owing taxes when you file your returns.

Yes. You can claim an exemption if you meet the low-income threshold, if you are a non-resident of Maryland qualifying under reciprocity (VA, DC, WV, PA), or if you are a military spouse.

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