Maryland Minimum Wage 2026: $15.00 Statewide, Up to $18.00 in Montgomery County
Maryland minimum wage is $15.00 an hour in 2026 with a $3.63 tipped cash wage and an 85 percent youth rate. Montgomery County pays $18.00, $16.50, or $15.95 by employer size and Howard County $16.00 from July 1, 2026. No statewide increase is scheduled.
The Maryland minimum wage is $15.00 per hour in 2026. The state reached $15.00 for all employers on January 1, 2024, two years ahead of the original schedule, and has no further increase on the books. Tipped employees must receive at least $3.63 in cash wages, and employees under 18 may be paid 85 percent of the minimum, or $12.75. Two counties set higher rates: Montgomery County pays $18.00, $16.50, or $15.95 depending on employer size, and Howard County pays $16.00 for every employer as of July 1, 2026.
Reviewed September 2026
Rates on this page were checked against the Maryland Department of Labor, Montgomery County, and the US Department of Labor state minimum wage tables as of July 1, 2026. County rates adjust each July 1; confirm before running payroll. See our labor law compliance guides for other Maryland rules.
Current Maryland Minimum Wage
The Maryland Department of Labor states that "most employees must be paid at least the Maryland State Minimum Wage Rate of $15 per hour." The Fair Wage Act of 2023 accelerated the schedule set in 2019, moving the $15.00 step from 2025 (large employers) and 2026 (small employers) up to January 1, 2024 for everyone. The same act removed the small-employer tier, so employers with 14 or fewer employees now pay the same rate as larger ones.
Maryland's rate is not indexed to inflation. Governor Moore's original 2023 proposal included automatic annual adjustments, but the General Assembly stripped indexing from the final bill. Any future increase will require new legislation.
The state law applies to most employers in Maryland. It works alongside the federal FLSA, and where both apply the employee receives the higher rate, which is always the Maryland figure today.
Maryland Minimum Wage vs Federal Minimum Wage
| Maryland 2026 | Federal (FLSA) | |
|---|---|---|
| Standard hourly minimum | $15.00 | $7.25 |
| Tipped cash wage | $3.63 | $2.13 |
| Maximum tip credit | $11.37 | $5.12 |
| Youth rate | 85 percent of minimum ($12.75) for employees under 18 | $4.25 for under-20s in the first 90 days |
| Annual adjustment | No | No |
| Local rates allowed | Yes (Montgomery and Howard counties) | Not applicable |
Tipped Minimum Wage in Maryland
Maryland employers may pay tipped employees a cash wage of $3.63 per hour and take a tip credit of up to $11.37, provided that "this amount plus tips must equal at least the State Minimum Wage Rate" of $15.00 for every hour worked. A tipped employee is one who customarily receives more than $30 a month in tips.
Maryland adds a wage statement rule that many employers overlook: employers who take a tip credit must give tipped employees a written or electronic statement each pay period showing the effective hourly rate, including cash wages and tips, for each workweek. That statement is how the state checks that the $15.00 floor was met.
Montgomery and Howard counties keep the same $3.63 cash wage, so the tip credit is larger there: up to $14.37 against Montgomery County's $18.00 large-employer rate, for example. Tips must still bring the employee to the full county rate.
Maryland Minimum Wage Increase Schedule
| Effective date | Employers with 15 or more employees | Employers with 14 or fewer |
|---|---|---|
| January 1, 2021 | $11.75 | $11.60 |
| January 1, 2022 | $12.50 | $12.20 |
| January 1, 2023 | $13.25 | $12.80 |
| January 1, 2024 | $15.00 | $15.00 |
| January 1, 2025 | $15.00 | $15.00 |
| January 1, 2026 | $15.00 | $15.00 |
| 2027 | No change scheduled | No change scheduled |
The small-employer track originally ran a year behind and would have reached $15.00 in July 2026. The Fair Wage Act of 2023 merged the two tracks on January 1, 2024.
Local Minimum Wages in Maryland
Maryland allows counties to set higher minimum wages, and two in the Washington, DC suburbs have done so. Both adjust on July 1.
| Jurisdiction | 2026 minimum wage (from July 1, 2026) | Employer size | Tipped cash wage |
|---|---|---|---|
| Statewide | $15.00 | All | $3.63 |
| Montgomery County | $18.00 | 51 or more employees | $3.63 |
| Montgomery County | $16.50 | 11 to 50 employees | $3.63 |
| Montgomery County | $15.95 | 10 or fewer employees | $3.63 |
| Howard County | $16.00 | All employers | $3.63 |
Montgomery County's large-employer rate is indexed to inflation and rose to $18.00 on July 1, 2026; the mid-size and small tiers follow fixed steps that will converge with the large-employer rate over the next few years, according to the county's minimum wage page. Howard County's ordinance reached $16.00 for employers with 15 or more employees on January 1, 2026 and for smaller employers on July 1, 2026, unifying the county rate. Employers in Bethesda, Silver Spring, Rockville, Columbia, and Ellicott City need the county rate; those in Baltimore, Annapolis, and Frederick use $15.00.
Who Is Covered and Who Is Exempt
The Maryland Wage and Hour Law covers most employees. The Department of Labor lists exemptions from the minimum wage that include:
- Immediate family members of the employer
- Certain agricultural employees
- Administrative, executive, or professional employees who meet the federal FLSA definitions
- Volunteers for charitable, educational, nonprofit, or religious organizations
- Employees under 16 who work less than 20 hours a week
- Outside salespeople and commissioned employees
- Employees of certain drive-in theaters, and trainees in public school special education programs
Employees of seasonal amusement and recreational establishments that meet certain criteria are exempt from overtime only; they still earn the minimum wage. Job titles do not decide exemption; see exempt vs non-exempt employees for the tests.
Overtime and the Minimum Wage
Maryland requires 1.5 times the regular rate after 40 hours in a workweek, with higher thresholds for a few groups such as bowling alleys and residential care facilities (48 hours) and agricultural workers (60 hours). There is no daily overtime.
For a minimum wage employee working 45 hours:
- 40 hours at $15.00 = $600.00
- 5 overtime hours at $22.50 = $112.50
- Weekly gross pay = $712.50
At Montgomery County's $18.00 large-employer rate the same week pays $720.00 plus $135.00, or $855.00. Tipped employees' overtime is calculated on the full minimum wage, not on $3.63. Use the overtime calculator and see overtime pay laws by state.
What a Minimum Wage Worker Earns in Maryland
| Schedule | Statewide $15.00 | Howard County $16.00 | Montgomery County $18.00 |
|---|---|---|---|
| 40-hour week | $600.00 | $640.00 | $720.00 |
| Month (173.33 hours) | $2,600.00 | $2,773.33 | $3,120.00 |
| Year (2,080 hours) | $31,200 | $33,280 | $37,440 |
Gross figures before taxes. Convert any rate with the salary to hourly calculator, and see what gross pay includes.
Common Minimum Wage Mistakes in Maryland
Maryland's county rates and youth rate generate most of the errors employers make:
- Counting only county employees for Montgomery County tiers. Employer size is measured by total employees, wherever they work. A national retailer with three employees in Bethesda is a large employer paying $18.00.
- Missing the July 1 county changes. The state rate is stable, but Montgomery and Howard counties adjust every July 1. Employers that only review rates in January miss the mid-year change.
- Keeping employees on the 85 percent rate after they turn 18. The youth rate ends on the employee's 18th birthday, not at the end of the pay period or the year.
- Skipping the tipped wage statement. Maryland requires a statement each pay period showing the tipped employee's effective hourly rate. Without it, the state can disallow the tip credit.
- Applying the 48-hour or 60-hour overtime thresholds too widely. Those apply only to specific industries such as residential care and agriculture; most employees are owed overtime after 40.
Employer Compliance Checklist
- Pay at least $15.00 statewide, and confirm whether any work location falls in Montgomery or Howard County.
- Count employees carefully for Montgomery County's three tiers; the count includes employees everywhere, not only in the county.
- Pay employees under 18 at least $12.75 (85 percent) and the full rate once they turn 18.
- Give tipped employees a wage statement each pay period showing their effective hourly rate with tips.
- Diary the July 1 county adjustments every year, since the state rate and county rates change on different dates.
- Record hours to the minute with a time card calculator or time tracking software; Maryland requires payroll records to be kept for three years.
- Post the Maryland minimum wage and overtime notice plus the county notice where applicable.
County-Accurate Hours for Maryland Teams
HiveDesk tracks clock-in and clock-out times by employee and work location, so Montgomery County shifts and Baltimore shifts are paid at the right rate with overtime calculated automatically. $5/user/month, 14-day free trial.
Frequently Asked Questions
What is the minimum wage in Maryland in 2026?
$15.00 per hour statewide. Montgomery County pays $18.00, $16.50, or $15.95 by employer size, and Howard County pays $16.00.
Is Maryland minimum wage going up in 2027?
No statewide increase is scheduled. Montgomery County's tiers adjust each July 1, and its large-employer rate is indexed to inflation.
What is the tipped minimum wage in Maryland?
$3.63 per hour in cash. Tips must bring the employee to $15.00, or to the county rate where one applies.
What is the minimum wage for minors in Maryland?
Employees under 18 may be paid 85 percent of the minimum wage, which is $12.75 in 2026.
What is the minimum wage in Montgomery County, Maryland?
From July 1, 2026: $18.00 for employers with 51 or more employees, $16.50 for 11 to 50, and $15.95 for 10 or fewer.
What is the minimum wage in Baltimore?
$15.00, the statewide rate. Baltimore City and Baltimore County have not adopted local minimum wages.
Does Prince George's County have its own minimum wage?
No. Prince George's County follows the $15.00 state rate.
How much is Maryland minimum wage per year?
$31,200 for a full-time employee working 2,080 hours at $15.00, before taxes.
For a comparison with every other state, see minimum wage by state.