This is the fastest and most secure method to update your Maryland state tax withholding. Complete Form MW507 so that your employer can withhold the correct Maryland income tax from your pay.The Maryland Form MW 507, Employee's Maryland Withholding Exemption Certificate, must be completed so that you know how much state income tax to withhold. This file provides essential instructions for completing withholding forms for Maryland state employees. Please note: Any 2024 New Hire employees must complete 2024 tax forms. Without 2024 tax forms, employees will be taxed at maximum without any tax refunds. The withholding of Maryland income tax if: a. If you meet all of the eligibility requirements for the exemption from withholding, fill out lines 1 through 3 of Part 1. I claim exemption from withholding because I do not expect to owe Maryland tax. See What is backup withholding, later.