Taxable Wages

Taxable wages include all employee compensation, such as salaries, fees, bonuses, commissions, vacation allowances, back pay, and retroactive wage increases.

Wages paid in any form other than money are measured by their fair market value. These include lodging, meals, property, or other considerations for personal services.

Withholding is not required for:

• Domestic service in a private home.
• Services performed by a duly ordained, commissioned or licensed minister of a church or religious order in the exercise of duties.
• Nonresidents (if their income consists entirely of wages or other compensation for personal services performed in Maryland, and their state of residence has a reciprocal agreement with Maryland. All other nonresidents are subject to withholding.)