Maryland Minimum Wage Guide for 2026

Maryland Minimum Wage - Historical Rates Table

Looking for minimum wage rates by state? Click here to view the minimum wage chart by state.

Local Maryland Minimum Wage

Maryland could have varying minimum wage requirements depending on the county or city. Here are all the minimum wage rates for localities in the state:

Montgomery County Minimum Wage

As part of the Montgomery County Code under Chapter 27, Section 27-68, Montgomery County establishes minimum wage rates based on employer sizes:

• Large Businesses: 51 or more employees
• Mid-Sized Businesses: Between 11 and 50 employees
• Small Businesses: 10 or fewer employees

Note that employer size includes all employees working for the employer, not exclusively employees working in Montgomery County.

The minimum wage rates are adjusted for inflation on July 1st annually using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for Washington-Baltimore, or a successor index.

Most employees performing work in Montgomery County qualify for the county's minimum wage requirement. However, all employees 19 years of age or under working less than 20 hours a week are exempt. These employees, however, federal or state minimum wage compliance may still be required. 

The law also states that employers may pay workers under the age of 20 at least 85% of the Montgomery County minimum wage for his or her first 6 months of employment, if desired. 

For tipped employees in Montgomery County, workers must be paid at least $4.00 per hour. The employee's tips plus the minimum tipped rate must equal the appropriate Montgomery County minimum wage. 

Howard County Minimum Wage

Effective April 1, 2022, under the Howard County Council Bill No. 82-2021, a schedule to increase the minimum wage was implemented to gradually raise the rate to $16.00 per hour for all employers by 2026.

Similar to Montgomery County, Howard County has historically determined the minimum wage based on the employer size, which is based on the following:

• Large Businesses: 15 or more employees
• Small Businesses: Less than 15 employees

Effective July 1, 2026, minimum wage requirements are no longer based on employer size and will be the same for employers throughout the county. 

Most employees performing work in Howard County qualify for the minimum wage, including Howard County government employees and employees of the public school system. Effective July 1, 2024, the minimum wage for government employees was raised to $16.00 per hour.

For tipped employees in Howard County, workers must be paid at least $3.63 per hour, matching the same rules for tipped employees as the state. The employee's tips plus the minimum tipped rate must equal the appropriate Howard County minimum wage.

After the scheduled increase, effective January 1, 2027, and each year thereafter, Howard County will adjust the minimum wage rates for inflation using the Consumer Price Index (CPI) for all Urban Consumers (CCPI-U Baltimore-Columbia-Towson. MD Average).

Prince George's County Minimum Wage

In previous years, the minimum wage was governed by the Maryland state rate. However, in accordance with County Bill 088-2024 and effective on September 1, 2025, the minimum wage for Prince George's County is to be determined using the Consumer Price Index for All Urban
Consumers (CPI-U) for the Washington-Arlington-Alexandria area and adjusted on January 1st each year.

Since the new law, effective January 1, 2026, the Prince George's County minimum wage has increased to $15.30 per hour. Though similar to Montgomery County, all employees 19 years of age or under working less than 20 hours a week are exempt.

For tipped employees in Prince George's County, workers must be paid at least $3.63 per hour, matching the same rules for tipped employees as the state. The employee's tips plus the minimum tipped rate must equal the County's minimum wage.

Maryland Special Minimum Wage

There are a few exemptions detailed in the Maryland Minimum Wage and Overtime Law; however, the primary exemption includes any person exempt under FLSA classification.

Additional exceptions to the Maryland minimum wage include:

• Tipped employees
• Minor employees

Maryland Minimum Wage for Tipped Employees

“Tipped employees” are classified as someone who regularly makes over $30 a month in tips. Similar to other employees, “tipped employees” have the right to make a minimum wage of $15.00 per hour. However, an employer only has to pay employees $3.63 per hour in his or her paycheck, as long as the employee makes a minimum of $11.37 per hour in tips, making the total pay per hour $15.00.

Employers may take a tip credit against an employee's wages for the amount earned in tips. To make up the difference in pay, if an employee makes less than $11.37 per hour in tips in a given work week, the employer must pay the employee’s earnings equal to $15.00 per hour.

Tax on Tips Update from the One Big Beautiful Bill Act

Signed by President Trump on July 4, 2025, the One Big Beautiful Bill Act allows applicable employees, including those self-employed, to claim a tax reduction on qualified tips received from his or her occupation. The tip tax deduction is effective from January 1, 2025 through December 31, 2028.

The occupation must be listed by the IRS as “customarily and regularly” receiving tips and must be reported on a Form W-2 or other applicable statements that report qualified tips (ex: Form 4137 for tips not reported to the employer).

An employee can deduct an annual maximum amount of $25,000. For self-employed individuals, the deduction amount cannot exceed his or her net income from the trade or business where the tips were earned. If an employee’s modified adjusted gross income (MAGI) exceeds $150,000, or $300,000 for employees filing taxes jointly, the amount allowed to be deducted will be reduced by $100 for each $1,000 earned above the MAGI.

To be eligible for the tip tax deduction, employees must include a Social Security number on the tax return for the given tax year. If married, the employee must also file jointly to remain eligible. Even if individuals opt for a standard deduction (vs. itemized deductions) on a tax return, the individual is still eligible for the annual maximum deduction for tipped wages.

Note that self-employed individuals categorized in a Specific Trade or Business (SSTB) under section 199A are NOT eligible.

Tip Reporting Requirements

All employers must file information returns to the IRS or Social Security Administration (SSA), as well as deliver the applicable forms, including a W-2, to employees that show the cash tips received and the occupation of the tip recipient.

Youth Minimum Wage in Maryland

Employers are only required to provide minor employees 18 years of age or under at least 85% of the state's minimum wage. This means that an employer may pay minor employees less than the Maryland minimum wage rate of $15.00 per hour, so long as he or she is at least compensated $12.75 per hour. Employers can pay more than the minimum amount, if desired.

Overtime Pay

The state of Maryland recognizes the federal overtime regulations set forth by the FLSA. If an employee works more than 40 hours in an average seven-day workweek, the employee is to receive an overtime rate of 1.5 times the employee's regular hourly rate.

A special adjustment is made for agricultural employees, in which he or she must receive an overtime rate of 1.5 times the regular rate of pay for over 60 hours worked in an average seven-day work week.

Maryland Minimum Wage Exemptions

Employees exempt from the minimum wage in Maryland include workers based on the Federal FLSA classifications.

Additionally, Maryland highlights several unique exemptions that affect a worker's right to the state's minimum wage and overtime law:

• Immediate family members of the employer
• Volunteers for educational, charitable, religious, and non-profit organizations
• Employees under the age of 16 working less than 20 hours per week
• Commissioned employees
• Trainees that are part of a public school special education program
• Non-administrative employees of organized camps
• Establishments selling food and drink for consumption on the premises grossing less than $400,000 annually
• Drive-in theater workers
• Certain agricultural employees, including those:
  • Performing canning, freezing, packing, or first processing of any perishable or seasonal fruits, vegetables, horticultural commodities, poultry, or seafood
  • Employed by an agricultural employer using 500 or fewer agricultural-worker days per quarter during the preceding year
    • Note that an agricultural worker day is equal to any day on which an employee works at least one hour for
  • Primarily engaging in the range production of livestock
  • Employed as a hand-harvest laborer paid on a piece-rate basis, and either one of the following applies:
    • The worker commutes daily from his or her home to the farm and works in agriculture for less than 13 weeks; or
    • The worker is 17 years of age, working on the same farm as his or her parent / guardian, and is paid the same rate as an employee of the same age or older on that farm

Maryland Meal and Rest Breaks

Maryland does not require employers to give specific meal or rest breaks to adult employees; however, employers that choose to offer such breaks must adhere to the specific guidelines set forth by the FLSA, regarding payment and length. 

Maryland Minimum Wage Posting Requirements

For compliance with Maryland labor laws, employers must visibly display the Maryland minimum wage in a conspicuous location that all employees have access to in the workplace. An all-in-one Maryland Labor Law Poster will cover all the required state and federal labor law postings.

Note that each time the minimum wage is updated, the labor law poster must be replaced in the workplace. A labor law poster subscription service will automatically provide updated mandatory notices that need to be posted for employees as additional changes take place with Maryland's state or local laws.

Penalties for Non-Compliance

In accordance with the Maryland Labor Employment Article, Title 3, employers violating Maryland wage and hour laws can be subject to the following penalties required by the Maryland Department of Labor (MD Labor) through the Employment Standards Service (ESS):

• Any wages owed to the employee, plus additional damages that can equal up to 3 times the amount of unpaid wages
• If the employer's intentions are proven to be willful, criminal misdemeanor charges and fines of up to $1,000 may follow

Final Thoughts on Maryland Minimum Wage

Businesses struggling to maintain minimum wage compliance or manage payroll may want to consider outsourcing payroll to a Maryland payroll services company. Areas for additional knowledge and learning include the basics of payroll and what to know about modern payroll software.  

To learn more about how Employer Pass is helping countless businesses maintain minimum wage compliance, contact us today or use the find a provider tool.