Maryland minimum wage increase 2026: What employers need to know
Maryland’s minimum wage is $15 per hour for most employees, and no statewide increase is scheduled for 2027.
Maryland’s minimum wage is $15 per hour for most employees, and no statewide increase is scheduled for 2027. The rate applies to every employer, regardless of size, for any employee whose primary work location is in Maryland.
Three counties pay more. As of July 1, 2026, Montgomery County’s minimum wage is $15.95 to $18.00 depending on employer size, Howard County’s is $16.00, and Prince George’s County’s is $15.30. Tipped employees statewide must receive at least $3.63 per hour in cash wages.
Below is a complete employer guide to Maryland’s minimum wage for 2026 and 2027, including county rates, tipped and overtime math, and a payroll checklist. For other states, see our minimum wage by state guide. For other states, see our minimum wage by state guide.
Maryland minimum wage rate history (2015 to 2026)
Maryland’s minimum wage rose from $8.00 in 2015 to $15.00 in 2024, and it has stayed at $15.00 since. From 2021 to 2023, employers with 14 or fewer employees paid a slightly lower rate. The Fair Wage Act of 2023 ended that split, so every employer has paid the same rate since January 1, 2024.
Maryland minimum wage by effective date, 2015 to 2026:
| Effective date | 15 or more employees | 14 or fewer employees |
| January 1, 2024 (current) | $15.00/hr | $15.00/hr |
| January 1, 2023 | $13.25/hr | $12.80/hr |
| January 1, 2022 | $12.50/hr | $12.20/hr |
| January 1, 2021 | $11.75/hr | $11.60/hr |
| January 1, 2020 | $11.00/hr | $11.00/hr |
| July 1, 2018 | $10.10/hr | $10.10/hr |
| July 1, 2017 | $9.25/hr | $9.25/hr |
| July 1, 2016 | $8.75/hr | $8.75/hr |
| July 1, 2015 | $8.25/hr | $8.25/hr |
| January 1, 2015 | $8.00/hr | $8.00/hr |
The federal minimum wage is $7.25 per hour. When federal, state, and county rates differ, Maryland employers must pay the highest one.
Source: Maryland Department of Labor; Fair Wage Act of 2019 and Fair Wage Act of 2023.
Will Maryland’s minimum wage increase in 2027?
The statewide rate isn’t scheduled to change, so it stays at $15.00 per hour in 2027 unless the General Assembly passes a new law. Maryland’s state rate is not tied to inflation.
County rates are a different story. Montgomery County adjusts its rates every July 1 based on inflation, so expect new Montgomery rates on July 1, 2027. Howard and Prince George’s counties also set their own rates, so check both before each July 1.
Two bills to raise the state rate were filed in the 2026 session:
- HB 1229 / SB 886 (Living Wage for All Act): Raise the minimum wage in steps to $25.00 by 2030 and phase out the tip credit.
- HB 1479 (Maryland Raise the Wage Act): Raise the minimum wage to $18.00 by 2028, then adjust it for inflation every year.
Neither passed. HB 1479 was withdrawn by its sponsor. Similar bills are likely to return when the 2027 session begins in January.
Maryland county minimum wages (2026)
Montgomery, Howard, and Prince George’s counties each set a minimum wage above the state’s $15.00. If your employees work in one of these counties, you pay the county rate.
Maryland county minimum wages as of July 1, 2026:
| County | Employer size | Minimum wage | Tipped cash wage |
| Montgomery County | Large (51+ employees) | $18.00/hr | $4.00/hr |
| Montgomery County | Mid-sized (11 to 50 employees) | $16.50/hr | $4.00/hr |
| Montgomery County | Small (10 or fewer employees) | $15.95/hr | $4.00/hr |
| Howard County | All employers | $16.00/hr | Check county rules |
| Prince George’s County | All employers | $15.30/hr | Check county rules |
| Rest of Maryland | All employers | $15.00/hr | $3.63/hr |
Montgomery County rules to know
Montgomery County has the most detailed rules in the state:
- Annual increases: Rates rise every July 1 based on inflation (the CPI-W for the Washington-Baltimore area).
- Mid-sized rate for some larger employers: 501(c)(3) nonprofits with 11 or more employees pay the mid-sized rate, even with 51 or more employees. So do home health and home or community-based care providers that get at least 75% of revenue from Medicaid.
- Youth rate: Employees under 20 can be paid 85% of the county rate for their first six months.
- Part-time teens: The county rate doesn’t apply to employees under 19 who work 20 hours a week or less.
The statewide Maryland poster can’t be used in these three counties. Each county has its own poster on the Maryland Department of Labor’s poster page.
Source: Maryland Department of Labor; Montgomery County Office of Human Rights.
Who must be paid the Maryland minimum wage?
Any employee whose primary work location is in Maryland must be paid the Maryland minimum wage, even if the employer is based in another state. The rule follows where the employee works, not where the company is headquartered.
A few situations come up often:
- Out-of-state employers: A Virginia or Pennsylvania company with employees based in Maryland pays them at least $15.00 per hour, or the county rate where applicable.
- Maryland employers with out-of-state staff: If an employee lives and works only in another state, the employer must evaluate whether Maryland’s or that state’s rate applies. Paying the higher of the two is the safest choice.
- Minors: Employees under 18 can be paid 85% of the state rate, or $12.75 per hour.
Exemptions from Maryland’s minimum wage
Maryland exempts some workers from both minimum wage and overtime, including:
- Immediate family members of the employer
- Employees who meet the federal definition of executive, administrative, or professional
- Outside salespeople and employees paid on commission
- Employees under 16 working less than 20 hours a week
- Volunteers for educational, charitable, religious, and nonprofit organizations
- Employees of restaurants and bars grossing less than $400,000 a year
- Certain agricultural, seasonal processing, and organized camp employees
Even if a worker is exempt under Maryland law, federal law may still require at least $7.25 per hour and overtime. Check both before treating anyone as exempt.
Tipped wages and overtime: how to do the math in Maryland
Maryland employers can pay tipped employees a cash wage of $3.63 per hour and take a tip credit of up to $11.37 per hour, as long as cash wages plus tips reach $15.00 for every hour worked. In Montgomery County, the tipped cash wage is $4.00 per hour.
A tipped employee is anyone who earns more than $30 a month in tips. If tips fall short in a workweek, the employer must make up the difference.
Restaurants that rely on tips to reach minimum wage must also give tipped employees a Tip Credit Wage Statement every pay period. It shows the employee’s effective hourly rate, meaning cash wages plus tips. Many payroll systems don’t produce this by default, so check yours.
Maryland overtime rules
Most Maryland employees earn 1.5 times their regular rate for hours over 40 in a workweek. Maryland has no daily overtime. There are two state exceptions:
- Over 48 hours: Bowling alleys and non-hospital residential care facilities, such as nursing homes, assisted living, and group homes.
- Over 60 hours: Certain agricultural workers.
Federal law can override the 48-hour rule. Nursing homes and residential care facilities are almost always covered by the federal FLSA, which requires overtime after 40 hours. In practice, most of these employers should pay overtime after 40.
Maryland overtime rates at the minimum wage, July 1, 2026:
| Location | Minimum wage | Overtime (1.5x) | Tipped cash overtime due |
| Maryland (statewide) | $15.00/hr | $22.50/hr | $11.13/hr |
| Montgomery County, large | $18.00/hr | $27.00/hr | $13.00/hr |
| Montgomery County, mid-sized | $16.50/hr | $24.75/hr | $12.25/hr |
| Montgomery County, small | $15.95/hr | $23.93/hr | $11.98/hr |
| Howard County | $16.00/hr | $24.00/hr | Check county rules |
| Prince George’s County | $15.30/hr | $22.95/hr | Check county rules |
vertime for a tipped employee is calculated on the full minimum wage, not the cash wage. Calculating statewide tipped overtime as $3.63 x 1.5 ($5.45/hr) underpays by $5.68 per overtime hour.
Maryland exempt salary threshold
Salaried employees in Maryland must earn at least $684 per week ($35,568 per year) to be exempt from overtime. Maryland follows the federal definitions for executive, administrative, and professional employees and has no higher state threshold.
| Exemption | Minimum salary |
| Executive, administrative, and professional | $684/week ($35,568/yr) |
| Highly compensated employees | $107,432/yr total pay |
he Department of Labor’s 2024 rule that would have raised these levels was struck down in November 2024, so the 2019 levels still apply. Salary alone isn’t enough: the employee must also pass the duties test for the exemption.
Maryland minimum wage payroll checklist
Maryland’s state rate is steady, but county rates change every July 1. Use these eight steps to stay compliant:
- Map each employee to a primary work location. Note whether they work in Montgomery, Howard, Prince George’s, or another county, and apply that rate.
- Confirm your Montgomery County size tier. Your employee count sets your rate ($18.00, $16.50, or $15.95). Nonprofits and Medicaid-funded home care providers may qualify for the mid-sized rate.
- Split pay periods that include July 1. County increases apply by the date work is performed.
- Example: A Montgomery County large employer on a weekly pay period in 2026 paid 24 hours worked June 24 to 30 at $17.65 ($423.60) and 16 hours worked July 1 to 3 at $18.00 ($288.00), for $711.60 in gross wages. Read our guide on how pay periods work for more on pay period math.
- Issue Tip Credit Wage Statements. Restaurants using the tip credit must give each tipped employee one every pay period.
- Calculate tipped overtime on the full minimum wage. Statewide, the tipped cash overtime rate is $11.13 per hour, not $5.45.
- Pay overtime after 40 hours in residential care. Maryland allows 48 hours for nursing homes and assisted living, but federal law usually requires 40.
- Display the right poster. Use the statewide poster everywhere except Montgomery, Howard, and Prince George’s counties, which each have their own. Also post the federal FLSA poster.
- Give written pay details at hire and a pay statement every payday. Maryland requires both, showing pay rate, hours, and deductions.
How Maryland’s minimum wage affects hourly workforces
The biggest payroll challenge in Maryland is location: the same job can carry a different minimum depending on the county. Here’s how that plays out by industry:
- Health care and long-term care: Nursing homes and assisted living facilities should pay overtime after 40 hours under federal law, even though Maryland’s rule says 48. Multi-site operators in Montgomery County pay up to $18.00, while sites elsewhere in the state pay $15.00. Medicaid-funded home care agencies in Montgomery County pay the mid-sized rate of $16.50.
- Restaurants and hospitality: Track the $3.63 statewide cash wage and the $4.00 Montgomery County cash wage separately, and issue Tip Credit Wage Statements every pay period.
- Construction and field services: Crews often work across county and state lines in one week. Hours worked in Montgomery County are paid at the county rate, and work in Washington, D.C., where the minimum is $18.40, follows D.C.’s rules.
- Staffing agencies: Bill rates for Montgomery County placements need to cover the $18.00 large-employer rate and its yearly July increase.
- Retail and multi-location businesses: A chain with stores in Montgomery, Howard, Prince George’s, and Baltimore counties runs four different minimum wages. Set rates by location in your payroll system, not by employee.
Penalties for noncompliance
Maryland gives employees several ways to recover underpaid wages:
- Back wages plus an equal amount: Under the Maryland Wage and Hour Law, employees can recover unpaid minimum wages and overtime, plus an equal amount in damages, plus attorney’s fees.
- Up to three times the wages owed: Under the Maryland Wage Payment and Collection Law, a court can award up to triple the unpaid wages when they weren’t withheld because of a genuine dispute.
- State wage claims: Employees can file a claim with the Maryland Department of Labor, which can investigate and order payment.
- Federal remedies: The U.S. Department of Labor can also recover back wages and an equal amount under the FLSA.
- No retaliation: Employers can’t take action against workers who file a complaint or exercise their rights.
The easiest way to avoid all of these is accurate time tracking and the right rate for every location. When every hour is recorded and paid correctly, there’s nothing to recover.
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Maryland employers can owe a state rate, a county rate, and a Montgomery County size tier in the same pay period. Fingercheck brings time tracking, scheduling, and payroll together for hourly teams, so location-based rates, tip credits, and July 1 county changes are handled in one place.
Maryland minimum wage FAQs for employers
This article is for general informational purposes only and isn’t legal or tax advice. Minimum wage rules can change. Confirm current requirements with the California Labor Commissioner’s Office, your city’s labor standards office, or an employment attorney.
Sources
- Maryland Department of Labor: Minimum Wage and Overtime Law
- Maryland Department of Labor: Minimum Wage and Other Requirements poster (revised 9/1/2026)
- Maryland Department of Labor: Minimum Wage FAQs
- Montgomery County Office of Human Rights: Minimum Wage
- Maryland General Assembly: HB 1479 (2026)
- U.S. Department of Labor: FLSA Employee Rights poster (WH1088)
