Maryland minimum wage in 2026 (and 2027)
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Maryland's minimum wage is $15.00 an hour in 2026, a state rate that has been in place since 2024 according to U.S. Department of Labor history tables (DOL state page, updated July 1, 2026). Two counties pay more: Montgomery County's large-employer rate is $18.00 and Howard County's is $16.00, both from July 1, 2026, and no 2027 statewide increase has been announced. Budget $33,849.80 a year for one full-time worker at $15.00 once payroll taxes are in, and more from 2027 when the FAMLI premium begins.
- 2026 minimum wage
- $15.00an hour
- Tipped cash wage
- $3.63an hour
- 2027
- Not announcedas of October 2026
- Federal floor
- $7.25an hour
On this page
Who earns what under Maryland law
Most Maryland employees get at least $15.00 an hour, with overtime after 40 hours in a week. Employees under 18 may be paid 85% of the state rate, which is $12.75 an hour (Maryland Department of Labor wage facts page).
Maryland's tipped cash wage is $3.63, which lets employers count as much as $11.37 an hour of tips toward the minimum for staff who make over $30 monthly in tips. If cash wages plus tips fall below $15.00, you pay the gap. Restaurants that rely on the tip credit also have to give each tipped employee a Tip Credit Wage Statement showing their effective hourly rate.
Which rate applies in Montgomery and Howard counties
Pay is set by where the work happens. Montgomery County sets three tiers from July 1, 2026: $18.00 for employers with 51 or more employees, $16.50 for 11 to 50 employees (also certain nonprofits and Medicaid-funded home care providers with 11 or more), and $15.95 for 10 or fewer. Tipped Montgomery workers must get at least $4.00 in cash. The county raises its rates each July 1 by the regional CPI-W. Howard County requires $16.00 for all employers regardless of size from July 1, 2026; its tipped rate is not shown on the state page.
City and county minimum wages in Maryland
| Where | 2026 rate | Effective | Tipped | Next change | Source |
|---|---|---|---|---|---|
| Montgomery County | $18.00 | 2026-07-01 | $4.00 | source | |
| Howard County | $16.00 | 2026-07-01 | source |
Checked October 2026 on each city or county labor office page. An employer pays the highest rate that applies where the work is done.
Converting the rates to annual pay
| Rate | Hourly | Annual |
|---|---|---|
| State | $15.00 | $31,200.00 |
| Under 18 (85%) | $12.75 | $26,520.00 |
| Howard County | $16.00 | $33,280.00 |
| Montgomery County, 51+ employees | $18.00 | $37,440.00 |
Source: Maryland Department of Labor wage facts page, checked Oct 18, 2026. Annual figure = hourly rate x 2,080.
At the state rate, that is $600.00 a week and $2,600.00 a month ($31,200 / 12).
How Maryland got to $15.00
DOL history shows Maryland at $11.00 in 2020, $11.75 in 2021, $12.50 in 2022 and $13.25 in 2023, then a $1.75 jump to $15.00 in 2024. The state rate has stayed at $15.00 since, and the Maryland Department of Labor page does not describe automatic indexing for the state rate. The county rates are the ones that keep moving each July.
Employer cost: taxes now, FAMLI in 2027
Maryland's new-employer unemployment rate is 2.60% on an $8,500 wage base (the state says new employer rates may range from 1.0% to 2.6%).
| Item | State $15.00 | Montgomery $18.00 |
|---|---|---|
| Wages | $31,200.00 | $37,440.00 |
| Employer FICA (7.65%) | $2,386.80 | $2,864.16 |
| FUTA (0.6% x $7,000) | $42.00 | $42.00 |
| SUTA (2.60% x $8,500) | $221.00 | $221.00 |
| Total | $33,849.80 | $40,567.16 |
Source: Maryland SUTA rate and wage base from states.csv, checked Oct 16, 2026. Excludes workers compensation and benefits.
From January 1, 2027, Maryland FAMLI contributions begin at 0.9% of wages, split 0.45% employer and 0.45% employee; businesses with fewer than 15 employees remit only half the rate. On a $31,200 wage, the employer share at a 15+ employee business would be 0.45% x $31,200 = $140.40 a year. County income tax in Maryland is an employee deduction you withhold, not an employer cost; see Maryland county income tax rates.
Paying Maryland staff correctly
Multi-county employers need payroll that assigns a work location to each shift so the county rate is applied. Maryland account setup is on our Maryland payroll tax page. Gusto's single-state Simple tier lists $49 per month and $6 per worker, and the Plus tier at $80 and $12 per worker handles more than one state (pricing checked October 16, 2026). See our payroll software rankings for other picks. Nearby: DC pays $18.40, Virginia $12.77 and Delaware $15.00.
Frequently asked questions
What is the Maryland minimum wage in 2026?
Will the Maryland minimum wage increase in 2027?
What is the Montgomery County minimum wage in 2026?
What is the Howard County minimum wage?
What is the tipped minimum wage in Maryland?
What is the minimum wage for minors in Maryland?
Sources (6)
- U.S. Department of Labor, Wage and Hour Division: Minimum wages for tipped employees (revised July 1, 2026) (checked Oct 18, 2026)
- U.S. Department of Labor, Wage and Hour Division: Changes in basic minimum wages in non-farm employment under state law, 1968 to 2024 (revised January 2025) (checked Oct 18, 2026)
- Gusto: Gusto pricing page (checked Oct 16, 2026)
- Maryland Department of Labor: Tip credit FAQs (Tip Credit Wage Statement) (checked Oct 18, 2026 (search result))
- dol.gov/agencies/whd/minimum-wage/state (checked October 16, 2026)
- labor.maryland.gov/labor/wages/wagehrfacts.shtml (checked October 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.