Self-Employment Tax in Maryland (2026)
Freelancing in Maryland? You'll owe the 15.3% federal self-employment tax plus federal income tax, plus Maryland's income tax (up to 5.75% (+ local)). Here's how it breaks down.
Federal self-employment tax (the same in every state)
No matter where you live, self-employment income is hit with 15.3% SE tax — 12.4% for Social Security (up to the annual wage base) and 2.9% for Medicare — on 92.35% of your net profit. You also pay federal income tax at your marginal rate. Half of the SE tax is deductible. See exactly how it's calculated in our self-employment tax guide.
Maryland state income tax on freelance income
Maryland has a progressive income tax up to 5.75%, and every county adds a local income tax on top. This state tax stacks on top of the federal SE and income tax, so budget for all three.
State rates shown are approximate for 2026 — several states are phasing rates up or down, so confirm the current rate with the Maryland Department of Revenue.
Estimate what you owe. The Self-Employment Tax Calculator computes your federal SE tax and income tax exactly, and lets you add Maryland's state rate to see your total set-aside and quarterly payments.
How much to set aside in Maryland
Plan on roughly 30–35% of your net profit for taxes as a freelancer in Maryland, then confirm your real number with the calculator. Move that percentage into a separate account every time a client pays you, and send it in through quarterly estimated payments to avoid the IRS underpayment penalty.
General information for Maryland, not tax advice. Confirm your specifics with a CPA.
Frequently asked questions
How much self-employment tax do I pay in Maryland?
The federal self-employment tax is 15.3% everywhere, including Maryland — 12.4% Social Security (up to the wage base) plus 2.9% Medicare. That's on top of federal income tax and Maryland state income tax (up to 5.75% (+ local)).
Does Maryland have a state income tax on freelance income?
Maryland has a progressive income tax up to 5.75%, and every county adds a local income tax on top.
How much should a freelancer in Maryland set aside for taxes?
A common rule of thumb is 25–30% of net profit, but Maryland's state income tax pushes the total higher. Use the Self-Employment Tax Calculator to get your exact set-aside from your profit and filing status.