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Iowaworking inMaryland
Standard — file nonresident return if onsite

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)

If you physically work in Maryland, file a nonresident Maryland return (tax rate: 2%-6.5% (new brackets in 2025)). Then file your Iowa return and claim the IA 130 credit so you don't get taxed twice on the same income.

Employer Obligations (What Your Employer Must Withhold & Remit)

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.

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Row last reviewed: Apr 17, 2026Home state credit form: IA 130

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.