Maryland (MD) Self Employment Tax Calculator

Maryland has 10 income tax brackets ranging from 2% to 6.5% after the 2025 BRFA rate increases. The brackets are indexed by filing status. For a single self-employed person at $80,000 net profit, the Maryland marginal rate is 4.75%. In addition to state income tax, Maryland counties impose a local income tax of 2.25%–3.2% — this calculator shows only the Maryland state portion. Source: Maryland Comptroller.

Yes. Maryland is unique in that counties levy a local income tax on top of the state rate. Local rates range from 2.25% (Worcester County) to 3.2% (multiple counties including Baltimore City, Prince George's, Montgomery). This calculator estimates the Maryland state income tax only — add your county's local rate to get the true combined Maryland tax burden.

Maryland's Budget Reconciliation and Financing Act of 2025 increased rates in the upper brackets and added new high-income brackets. The top marginal rate increased to 6.5% for income above approximately $300,000 (single). The lower brackets (2%–4.75%) were not changed. These rates apply to 2026 tax returns filed in 2027.

Self-employment (SE) tax is the Social Security and Medicare tax paid by freelancers, 1099 contractors, and sole proprietors. Employees split these costs with their employer (7.65% each); when you work for yourself you pay both halves — 15.3% total — on 92.35% of your net profit. It is separate from, and on top of, federal and state income tax.

Yes. In addition to federal SE tax, Maryland taxes self-employment net profit as ordinary income. This calculator shows both: the federal SE tax (Social Security + Medicare) and the estimated Maryland state income tax side by side, so you can see your true combined tax bill.

Yes — from federal income tax. You can deduct one half of your Social Security and Medicare SE tax as an above-the-line adjustment to income on Form 1040. This deductible half also reduces your federal AGI, which in turn reduces your state taxable income in most states (except Pennsylvania, which taxes gross compensation regardless).

SE tax is based on net profit (gross revenue minus business expenses), so every legitimate business deduction reduces both your SE tax and your state income tax. Common deductions include home-office use ($5/sqft simplified method), equipment and software (Section 179), business mileage, and professional services. The standard deduction and QBI deduction reduce income tax only — not SE tax.

SE tax is paid through quarterly estimated payments (Form 1040-ES), due April 15, June 16, September 15, and January 15 for the prior year's fourth quarter. If you expect to owe $1,000 or more in federal tax after withholding, you generally must pay quarterly to avoid the IRS underpayment penalty. Most states that tax SE income have parallel quarterly estimated payment requirements.