How Much Does Disability Pay in Maryland?

Navigating the landscape of disability payments can be complex, with various programs offering financial support to individuals in Maryland. Understanding how these payments are determined is crucial, as the methodologies and factors influencing the benefit amounts differ significantly across programs. This overview explains the specific calculations involved, providing clarity on how an individual’s unique circumstances can affect the financial assistance they receive.

Social Security Disability Insurance (SSDI) Payment Determination

Social Security Disability Insurance (SSDI) benefits are calculated based on an individual’s lifetime earnings record, reflecting contributions to the Social Security system through payroll taxes. The Social Security Administration (SSA) uses two metrics for this calculation: Average Indexed Monthly Earnings (AIME) and Primary Insurance Amount (PIA). AIME indexes historical earnings to account for wage level changes, averaging the highest 35 years.

Once AIME is established, the SSA applies a progressive formula to determine the Primary Insurance Amount (PIA). For individuals becoming eligible in 2025, the PIA is calculated using “bend points.” The formula involves taking 90% of the first $1,226 of AIME, plus 32% of AIME between $1,226 and $7,391, and then 15% of any AIME above $7,391. This sum constitutes the monthly SSDI benefit before any adjustments.

SSDI also provides auxiliary or family benefits, paid to a qualifying spouse and dependent children based on the disabled worker’s earnings. Each eligible family member may receive a portion of the worker’s PIA, but the total amount a family can receive is capped by a family maximum benefit. This maximum typically falls between 100% and 150% of the primary beneficiary’s PIA. If the sum of individual benefits exceeds this family cap, benefits for dependents are proportionally reduced to meet the limit. The disabled worker’s own benefit remains unaffected.

Supplemental Security Income (SSI) Payment Determination

Supplemental Security Income (SSI) provides financial assistance to aged, blind, or disabled individuals with limited income and resources, differing from SSDI as it is a needs-based program. The foundation of SSI payments is the Federal Benefit Rate (FBR), a national standard set by the SSA. As of January 1, 2025, the maximum FBR is $967 per month for an eligible individual and $1,450 per month for an eligible couple.

Actual SSI payments can be less than the FBR, reduced by countable income and resources. Countable income includes most earned and unearned income, with specific exclusions like the first $65 of earned income and half of the remaining earned income. Resources (assets) are also considered, with limits of $2,000 for an individual and $3,000 for a couple. Exceeding these thresholds can reduce the federal benefit.

Maryland provides a state-administered supplement to the federal SSI payment. Eligible Maryland residents may receive a higher total monthly benefit than the federal FBR. While the specific formula for Maryland’s state supplement can vary, the combined average SSI payment in Maryland for 2025 is around $1,648 per month, reflecting this state assistance.

Maryland Workers’ Compensation Benefit Calculation

Workers’ Compensation benefits in Maryland are designed to provide financial and medical support to employees who suffer work-related injuries or illnesses. The payment amount for various types of benefits is determined by the worker’s Average Weekly Wage (AWW). The AWW is calculated by averaging the employee’s gross wages over the 14 weeks immediately preceding the injury, including regular pay, overtime, bonuses, vacation pay, and tips.

For Temporary Total Disability (TTD) benefits, paid when an injured worker is completely unable to work during recovery, compensation is two-thirds of the AWW. In 2025, the maximum weekly TTD benefit in Maryland is $1,493.00, with a minimum of $50 per week unless the worker’s AWW was less. There is a three-day waiting period before TTD benefits begin, but if the disability lasts more than 14 days, the initial three days are paid retroactively.

Permanent Total Disability (PTD) benefits are also two-thirds of the AWW, with the same $1,493.00 weekly maximum for injuries on or after January 1, 2025. These benefits are for injuries permanently preventing work in any capacity. For Temporary Partial Disability (TPD), where a worker can perform limited duties or work fewer hours, benefits cover 50% of the difference between their pre-injury AWW and current earning capacity, with a 2025 maximum of $747.00 per week.

Permanent Partial Disability (PPD) benefits compensate for lasting impairments that do not completely prevent work and are structured in tiers based on the duration of compensation. For awards less than 75 weeks for injuries in 2025, the rate is one-third of the AWW, not to exceed $250.00. For awards between 75 and 249 weeks, it is two-thirds of the AWW, with a maximum of $498.00. For more severe disabilities resulting in awards of 250 weeks or more, the rate is two-thirds of the AWW, capped at $1,120.00, which is 75% of the statewide average weekly wage.

Medical benefits cover necessary and reasonable treatment related to the work injury. In work-related fatalities, death benefits for dependents are also up to two-thirds of the deceased worker’s AWW, with a maximum of $1,493.00 for injuries on or after January 1, 2025.

Understanding Other Factors Affecting Disability Payments

Several factors can influence disability payments beyond initial calculations. Federal disability benefits, such as SSDI and SSI, are subject to Cost of Living Adjustments (COLAs), annual increases based on inflation to maintain purchasing power. These adjustments ensure benefits keep pace with rising living costs.

Receiving multiple benefits can lead to offsets or reductions in federal disability payments. For example, if an individual receives both SSDI and Workers’ Compensation benefits, the SSDI amount may be reduced to prevent total benefits from exceeding a certain limit, typically 80% of the worker’s average current earnings before disability. This coordination prevents overpayment and ensures equitable resource distribution.

Disability benefits can also be taxable. SSI payments are not taxable income and do not need to be reported on federal tax returns. However, SSDI benefits can be subject to federal income tax if total income exceeds specific thresholds. For single filers, up to 50% of SSDI benefits may be taxable if their combined income (half of SSDI plus all other income) is between $25,000 and $34,000, and up to 85% if combined income exceeds $34,000. For those married filing jointly, these thresholds are $32,000 and $44,000, respectively.

Returning to work can also impact ongoing disability payments, with specific rules designed to encourage employment while protecting benefits. For SSDI recipients, the SSA uses the concept of Substantial Gainful Activity (SGA) to determine if work activity indicates an ability to perform significant work. The monthly SGA limit for non-blind individuals in 2025 is $1,620, while for blind individuals, it is $2,700. Earning above these limits can affect eligibility for benefits.

SSDI also includes a Trial Work Period (TWP), allowing beneficiaries to test their ability to work for nine months (not necessarily consecutive) without earnings affecting benefits, even if they exceed the SGA limit. In 2025, any month earning over $1,160 counts as a TWP month. For SSI, while the SGA limits apply, any earned income, even below SGA, can reduce the monthly benefit due to its needs-based nature.