Withholding for Domestic Employees

You are not required by law to withhold Maryland income taxes from the wages paid to a domestic employee in a private residence. However, you may do so as a courtesy to the employee.

If you wish, you can register your withholding account online and use bFile to file your withholding returns electronically for free.

You can also refer to our Employer Withholding Guide or 2008 Withholding Tables to determine the correct amount of state and local income tax that must be withheld from employee wages. The total income tax required to be withheld on wages for the purposes of the withholding tables is calculated without regard to the marginal state income tax rates of less than 4.75 percent. The local income tax, which is calculated as a percentage of taxable income, is included in the amount shown in the withholding tables.

If taxes are not withheld, then the employee will need to make estimated tax payments. For more information, see Income Tax Withholding.