Web Developer Taxes in Maryland - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Web Developer in Maryland

Maryland’s thriving tech scene offers web developers exciting opportunities, but navigating the tax landscape as a self-employed professional requires careful planning. As an independent contractor or freelancer, understanding your federal and state tax obligations is crucial for financial success.

The IRS requires all self-employed individuals, including web developers, to report income and expenses on Schedule C (Profit or Loss From Business) with Form 1040. Furthermore, earnings exceeding $400 necessitate the payment of self-employment tax, covering both Social Security and Medicare contributions. Accurate record-keeping throughout the year is essential to maximize deductions and ensure compliance.

How Maryland Handles Gig Worker Taxes

As a resident of Maryland, a state income tax return is required, regardless of income level. Maryland utilizes a graduated income tax system, meaning the tax rate increases as income rises. For the 2025 tax year, Maryland’s tax rates are expected to remain consistent with prior years, ranging from 2% to 5.75% based on income brackets. Self-employed web developers will primarily use Form 502, Individual Income Tax Return, to report their income and calculate their Maryland state income tax liability. Additionally, Form 502-B, Maryland Adjustments to Federal Adjusted Gross Income, is used to report any adjustments to federal income. Maryland also has a county income tax, which varies depending on the county of residence, adding another layer to the state tax calculation. Estimated tax payments are generally required quarterly if your expected tax liability exceeds $100. Failure to pay estimated taxes can result in penalties. The Maryland Comptroller’s Office provides comprehensive resources and tools for self-employed individuals; you can find more information at https://www.marylandtaxes.gov/. Remember to factor in both state and county taxes when planning your finances.

Key Tax Deductions for Home-Based Web Developers

• Home Office Deduction: To qualify for the home office deduction, the space must be used exclusively and regularly for business. “Exclusive use” means that portion of your home is used solely for your web development work – it cannot double as a guest room or family space. “Regular use” implies consistent and ongoing use for business activities. You can calculate the deduction using the simplified method ($5 per square foot, up to 300 square feet) or the actual expense method, which requires calculating a percentage of your home expenses (mortgage interest or rent, utilities, insurance, etc.) based on the square footage of your dedicated office space.
• Hardware & Software: The cost of computers, monitors, cameras, and essential software subscriptions (like Adobe Creative Cloud, web hosting, or development tools) directly related to your web development business are generally deductible. For items with a useful life of more than one year, depreciation or Section 179 expensing may apply.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to business use. Maintain detailed records to support this calculation. For example, if 75% of your internet usage is for work, you can deduct 75% of the bill.

Note on Mileage: As a home-based worker, mileage deductions are less common. However, you can claim mileage for occasional trips to meet with clients, attend industry events, or purchase supplies directly related to your business.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the employer and employee portions of these taxes when you are employed by a company. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).