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Tax Change Implemented Pay Period (PP) 2024-05: MD

MEMORANDUM

DATE: February 28, 2024
TO: Federal Personnel and Payroll System User Group Representatives
FROM: Christine Zertuche-Rocha, Chief, Payroll Operations Division
SUBJECT: Tax Change Implemented Pay Period (PP) 2024-05: MD

Please share this information with all impacted employees. The following tax changes were implemented in PP 2024-05. As a reminder, this tax change is not retroactive to employees’ withholdings.

Federal Taxes

State Tax

  • Maryland Income Tax Withholding:
    • The income tax withholding formula has changed effective January 1, 2024.
    • The minimum standard deduction has increased from $1,700 to $1,800.
    • The maximum standard deduction has increased from $2,550 to $2,700.
    • County Tax Changes:
      • The tax tables for Anne Arundel have changed.
        • There are now two tables based on marital status.
      • The tax tables for Frederick have changed for Single and Married filers.
      • Cecil tax rate has changed from 2.80% to 2.75%.
      • Supplemental Wages Tax Rate:
        • Anne Arundel has changed from 2.81% to 3.20%.
        • Frederick has changed from 2.96% to 3.20%.
      • Datamart Query: Tax State = 24

You may execute Datamart queries to identify employees in affected state taxing areas. For Combined File Ad-Hoc query/analysis of applicable States: add STE Tax State 1 = (State Code above) or STE Tax State 2 = (State Code above) to the filter or prompt lines.

The Interior Business Center (IBC) Payroll website is updated frequently; you may view the state tax formulas here: Federal, State, and Territorial Income Tax Withholding. Formulas.

If there are any questions, please call the IBC Customer Support Center at 1 (866) 367-1272 or by email at Payroll_Helpdesk@ios.doi.gov.