MW507 Married Filing Jointly: Exemptions, Dual Income, and Filing

To fill out the MW507 for married filing jointly, complete the Personal Exemption Worksheet on page 2 to count your household’s exemptions, carry that number to Line 1 on the front, check the “Married” rate box in the filing-status section, and use Line 2 to add extra per-paycheck withholding if you have two incomes or significant non-wage income. The form is one page, but the worksheet behind it is where couples either land close to their true tax or set themselves up for a surprise in April.

Start With the Personal Exemption Worksheet

Page 2 of the MW507 walks you through six lines, labeled a through f. The worksheet totals your exemptions in dollars, then converts that total into the whole number you enter on Line 1.¹

Line a: Personal and Dependent Exemptions

Count one exemption for yourself, one for your spouse, and one for each qualifying dependent. Multiply by the value in the Exemption Amount Chart. For most married-filing-jointly couples with combined federal AGI at or below $150,000, each exemption is worth $3,200.² Do not count any exemption your spouse is already claiming on a separate MW507 at their own employer.

Above $150,000, the value shrinks: $1,600 per exemption between $150,000 and $175,000, $800 between $175,000 and $200,000, and zero above $200,000.³ Higher-earning couples who lose the full exemption lean more on Line c and Line 2 to fine-tune withholding.

Line b: Dependents Age 65 and Older

Multiply the number of dependents who are 65 or older by the same exemption value from the chart and enter the result.

Line c: Deductions Above the Standard

This is the line most couples overlook. If your itemized deductions (excluding state and local income taxes) exceed the standard deduction used by this worksheet, enter the difference. That standard is 15% of your Maryland adjusted gross income, floored at $1,850 and capped at $2,800. You can also include alimony payments, childcare expenses, qualified retirement contributions, and business losses on this line.²

Line d: Age 65 or Blind

Add $1,000 for each spouse who is 65 or older, and another $1,000 for each spouse who is legally blind. A couple where both spouses are over 65 would enter $2,000.

Lines e and f: The Number for Line 1

Line e is the sum of a through d. Line f divides that total by $3,200, or by your reduced exemption value if the AGI phaseout applies. Drop any fraction. If you get 4.7, your answer is 4. That whole number is what goes on Line 1 on the front of the form.¹

Complete the Front of the Form

Employee Information

Enter your full name, Social Security number, home address, and county of residence. The county sets your local income tax rate, which is withheld alongside the state rate. Maryland local rates for 2026 run from 2.25% to 3.20%, and some counties such as Frederick use a graduated scale. Skip the MW507 entirely and your employer must default you to the highest local rate of 3.30%.⁴

Filing Status

Check the box labeled “Married (surviving spouse or unmarried Head of Household) Rate.” That directs your employer’s payroll system to apply the wider married brackets, which keep more of your wages in the lower rate tiers.⁴ If both of you work, read the next section before you check this box: one of you may need to check the “Married, but withhold at Single Rate” box instead.

Line 1

Enter the whole number from Line f of the worksheet. It must be between 0 and 99.¹ If you claim more than 10 exemptions, your employer is required to forward a copy of the form to the Comptroller’s Compliance Division.²

Line 2

Line 2 is optional. It lets you request an additional flat dollar amount withheld from each paycheck. Single-earner couples can usually leave it blank. Dual-income households and couples with significant non-wage income will often need it.

When Both Spouses Work

The married withholding tables assume one spouse earns all the household income. When both work, each employer independently applies the generous married brackets to that spouse’s wages, so the lower rate tiers get used twice. Combined withholding falls short of what you actually owe, and you write a check in April.

Maryland offers three fixes on the MW507 itself:

One spouse checks the “Married, but withhold at Single Rate” box, which applies narrower brackets and withholds more per paycheck. This is the simplest approach and works well when the two incomes are roughly similar.¹
Load all the household’s exemptions onto one spouse’s MW507 and have the other spouse claim zero. That prevents the same exemptions from reducing withholding on two paychecks.
Estimate the annual shortfall, divide by the pay periods remaining, and enter that dollar figure on Line 2 of one spouse’s MW507.¹

The Line 2 method is the most precise because it targets the exact gap, but it requires you to do the math yourself or use the Comptroller’s online tax calculator.

Non-Wage Income

Rental income, dividends, capital gains, and freelance earnings do not have Maryland tax withheld at the source. The MW507 can absorb that liability two ways. Claim fewer exemptions than you’re technically entitled to, which raises withholding on every paycheck. Or estimate the tax owed on the outside income and add that as a per-period dollar amount on Line 2.² Either method aims to cover your full Maryland liability through payroll, avoiding quarterly estimated payments and underpayment penalties.

Total Exemption From Withholding

Line 3 lets you claim complete exemption, but only if both of these are true:

You owed no Maryland income tax last year and were entitled to a full refund of all tax withheld.
You expect to owe no Maryland income tax this year and expect a full refund of all tax withheld.

If both apply, check 3a and 3b, enter the tax year, and write “EXEMPT” on Line 3.⁵ Married couples with two incomes rarely qualify. Exempt status must be renewed by February 15 of the following year, or your employer will resume withholding as though you claimed zero exemptions.¹

A separate exemption on Line 8 exists for the civilian spouse of an active-duty servicemember present in Maryland only because of the military spouse’s orders; it requires filing Form MW507M with supporting documentation and annual renewal.⁶

Stay Clear of Underpayment Penalties

Maryland charges interest and penalties when too little is paid in during the year. Your total payments must equal at least 90% of the current year’s tax, or at least 110% of the tax shown on your prior year’s return, whichever is less.⁷ The 110% prior-year safe harbor is useful when income jumps unpredictably: if withholding covers that threshold, no penalty applies even if you owe a balance.

Couples who owed at last April’s filing can close the gap directly. Take the amount you underpaid, divide by pay periods remaining, and put that figure on Line 2 of one spouse’s MW507. Recheck the math mid-year, since raises, bonuses, or new income sources shift the target.

Submitting and Updating the Form

Give the completed MW507 to your employer’s payroll or HR department. The employer keeps it on file and applies the withholding instructions; the form is not routinely sent to the Comptroller’s Office.¹

If the exemptions you can rightfully claim drop during the year, from a divorce, a dependent aging out, or a jump in non-wage income, you must file an updated MW507 within 10 days.¹ No deadline applies when your exemptions increase, say after the birth of a child, but filing promptly means the added take-home pay reaches you in the remaining paychecks rather than waiting for a refund.

If you never submit an MW507 at all, your employer must withhold as single with zero exemptions, the most aggressive combination. That produces a refund but costs cash flow across the year. Keep a personal copy of every MW507 you file so you can reconcile against your W-2 if a discrepancy surfaces.

1
Comptroller of Maryland. 2026 MD Form MW507 Employee Withholding Exemption Certificate
2
Comptroller of Maryland. MW507 Instructions
3
Comptroller of Maryland. Exemptions Worksheet
4
Comptroller of Maryland. 2026 Maryland State and Local Income Tax Withholding Information
5
Comptroller of Maryland. MD Employee Withholding Exemption Certificate Form MW507
6
Comptroller of Maryland. MW507M Exemption from Maryland Withholding Tax for a Qualified Spouse of a Servicemember
7
Comptroller of Maryland. Payroll Changes Effective January 1, 2026