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New Member
posted Feb 2, 2020 2:36:43 PM

Tax Year Prior to 2020: MD State taxes

I moved to MD this past August (2019) from MI and followed the typical exemptions on my papers when I hired in. When doing my taxes today it told me I would owe the State of Maryland $900+ for taxes due to not being taxed enough priorly. How can that be possible?

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Expert Alumni
Feb 2, 2020 3:01:22 PM

I come across this issue quite a bit regarding Maryland taxpayers. Some payroll departments left out withholding for local taxes which is based on the county of residence. The local taxes range from between 2.6% to 3.2% of state taxable income, separate from the 4.75% of state income tax. It is likely that your employer did not withhold any local taxes in your paycheck, hence the reason for you owing Maryland.