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May 16, 2022
2022-0786

Maryland issues revised 2022 percentage method income tax withholding calculation

In March 2022, the Comptroller of Maryland issued an updated Maryland Employer Withholding Guide to reflect changes in the standard deduction rates enacted in 2018. The updated guide shows changes in the percentage method of income tax withholding, now reflecting a minimum standard deduction of $1,600 and a maximum of standard deduction of $2,400.

There is no change in the state income tax rate of 3.2%.

Employers should implement this change as soon as possible.

Information concerning Maryland local income taxes that are added to the state income tax withholding is available here.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kristie Lowery (kristie.lowery@ey.com)
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)

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