Do you own a business in Maryland? Here’s some helpful information and links:
Maryland does have state and local income tax. Employers should have their employees fill our form MW507.
Maryland does have local county income withholding tax and employers need to make sure they are collecting that with the Maryland state income withholding tax. Information regarding the county income withholding tax can be found here.
Additional information on Maryland state and local income withholding tax can be found here.
Maryland has reciprocity agreements with Washington D.C, Pennsylvania, Virginia and West Virginia. Employees that live in one of those states, should indicate it on line 4 when they are filling out form MW507.
Additional information on Maryland’s reciprocity agreements can be found here.