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District of Columbiaworking inMaryland
Reciprocity — home state withholds for you

Maryland

Work State Tax Rate
2%-6.5% (new brackets in 2025)
Withholding Starts
Day 1
Law Last Updated
Jan 1, 2025

Employee Obligations (Which Returns YOU Must File)

District of Columbia has a reciprocity agreement with Maryland. If your only income from Maryland is wages, salary, tips, or commissions, file your District of Columbia return only — no Maryland return needed. Give your Maryland employer your reciprocity form each year.

Employer Obligations (What Your Employer Must Withhold & Remit)

Reciprocity applies. If the employee provides the reciprocity form, withhold District of Columbia tax instead of Maryland tax. Must still register for Maryland unemployment insurance. Register for withholding and unemployment from day 1. Unemployment applies to the first $8,500 of wages. PFML starts in 2027 with employer paying up to 0.45%.

City & Local Income Taxes (Extra Filings Beyond the State Return)

All 23 Maryland counties plus Baltimore City levy local income taxes. Nonresidents pay a flat 2.25% (doubled from 1.25% in January 2025). This is handled on the state return. Combined state plus local can exceed 8.75%. The M1CR credit does NOT cover the local portion.

Reciprocity Agreement — File Home State Only for Wages

District of Columbia has a reciprocity agreement with Maryland. For wage income, you only need to file your District of Columbia return.

Row last reviewed: Apr 17, 2026Home state credit form: Schedule U

This is general information, not tax or legal advice. Laws change frequently. Always consult a licensed CPA or tax attorney for your specific situation. All information researched as of March 21, 2026.