Every line on your pay stub decoded — federal tax, Maryland state tax, county tax, Social Security, Medicare, and more. Know exactly where your money goes.
Most people look at one number on their paycheck — the deposit amount. But understanding every line tells you something important: whether you're withholding too much, too little, and where the biggest chunks of your money are going.
Here's what a typical Maryland employee's pay stub looks like for someone earning $70,000/year (biweekly pay, paid every 2 weeks):
That $70,000 salary works out to about $1,654/biweekly or roughly $3,308/month take-home — not $5,833 (which would be the gross monthly). The difference is $2,525 going to taxes and deductions every month.
The federal government uses a progressive tax bracket system. You don't pay one flat rate on all your income — you pay different rates on different chunks of it.
| Taxable Income (Single Filer) | Federal Tax Rate |
|---|---|
| $0 – $11,925 | 10% |
| $11,926 – $48,475 | 12% |
| $48,476 – $103,350 | 22% |
| $103,351 – $197,300 | 24% |
| $197,301 – $250,525 | 32% |
| $250,526 – $626,350 | 35% |
| Over $626,350 | 37% |
How much gets withheld per paycheck depends on your W-4 form — specifically whether you claimed the standard deduction, any dependents, or additional withholding amounts.
Maryland has a graduated state income tax with rates ranging from 2% to 5.75%. Here are the 2026 brackets for single filers:
| Maryland Taxable Income | State Tax Rate |
|---|---|
| $0 – $1,000 | 2% |
| $1,001 – $2,000 | 3% |
| $2,001 – $3,000 | 4% |
| $3,001 – $100,000 | 4.75% |
| $100,001 – $125,000 | 5% |
| $125,001 – $150,000 | 5.25% |
| $150,001 – $250,000 | 5.5% |
| Over $250,000 | 5.75% |
Most Maryland workers earning $40,000–$100,000 end up paying around 4.5%–4.75% in state income tax on their effective income after the standard deduction.
Here's the one most people don't know about until they see it on their pay stub: Maryland is one of the only states that charges a separate county-level income tax. Every county sets its own rate, and it's withheld straight from your paycheck just like state tax.
FICA stands for the Federal Insurance Contributions Act. These two taxes are mandatory for nearly every employee in the country — and they come out before you ever see your paycheck.
| Tax | Your Rate | Employer Also Pays | 2026 Wage Cap |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $176,100 |
| Medicare | 1.45% | 1.45% | No cap |
| Additional Medicare (high earners) | 0.9% | — | Over $200,000 |
On a $70,000 salary, you pay $4,340 in Social Security and $1,015 in Medicare per year — a combined $5,355 just in FICA taxes. Your employer quietly matches the same amount on their end.
Let's put it all together. Here's exactly what happens to a $70,000 salary for a single filer living in Montgomery County, Maryland in 2026:
| Deduction | Annual Amount | % of Gross |
|---|---|---|
| Federal Income Tax | $9,800 | 14.0% |
| Social Security (6.2%) | $4,340 | 6.2% |
| Medicare (1.45%) | $1,015 | 1.45% |
| MD State Income Tax | $3,150 | 4.5% |
| Montgomery County Tax | $2,240 | 3.2% |
| Total Taxes | $20,545 | 29.4% |
| Take-Home Pay | $49,455 | 70.6% |
💰 The real number: A $70,000 salary in Montgomery County, MD leaves you with about $49,455/year or $4,121/month take-home — before health insurance or retirement contributions. That's the number to budget from.
If you consistently get a huge tax refund, that means you're overpaying taxes all year — essentially giving the government an interest-free loan. If you owe money every April, you're underpaying. Either way, your W-4 needs adjusting.
Ask your HR department for a new W-4 form. You can update it any time during the year — it's not a once-a-year thing.
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