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Maryland's Minimum Wage: What Employers and Workers Should Know

The state minimum wage is $15 an hour, but some counties set higher rates from July 1, 2026. Here is how the rules work, including tipped work and overtime.

Illustration of a stack of coins beside a paycheck and a clock showing working hours

Pay rules in Maryland are set at more than one level. The state sets a floor, and a few counties set higher ones. The Maryland Department of Labor publishes the figures, and this guide summarizes what it says.

What is the state minimum wage?

According to the Maryland Department of Labor, most employees must be paid at least the state minimum wage rate of $15 per hour. That is the baseline for employers across the state unless a local rule is higher.

Which counties set higher rates?

The Department’s page lists county minimums that took effect on July 1, 2026:

County Minimum wage from July 1, 2026
Howard County $16.00 per hour
Montgomery County, large employers (51 or more employees) $18.00 per hour
Montgomery County, mid-sized employers (11 to 50) $16.50 per hour
Montgomery County, small employers (10 or fewer) $15.95 per hour
Prince George’s County $15.30 per hour

The Department notes that future county rates adjust each year based on the Consumer Price Index for the Washington-Baltimore region. Where a county rate is higher than the state rate, it is the higher figure that applies to workers there.

How do tips work?

For tipped employees, employers must pay a direct cash wage of at least $3.63 per hour. That direct wage plus tips must add up to at least the state minimum wage. In other words, tips can count toward the minimum, but only up to the point where the worker’s total reaches the required rate.

What about overtime?

Most employees must be paid one and a half times their usual hourly rate for all hours worked over 40 in a week.

A worked example

Take a worker paid exactly the $15 state minimum who works 45 hours in a week:

  • The first 40 hours: 40 × $15 = $600.
  • The 5 overtime hours are paid at $15 × 1.5 = $22.50 an hour: 5 × $22.50 = $112.50.
  • The week’s total is $600 + $112.50 = $712.50 before any deductions.

The same hours under Montgomery County’s large-employer rate would be higher: a $18 base gives 40 × $18 = $720, plus 5 × $27 = $135, for $855 before deductions. The figures are illustrative arithmetic, not pay advice.

Why it matters for the economy

Minimum wage rules shape payroll costs for employers and take-home pay for workers, particularly in retail, hospitality and care work. Because county rules differ, a business with sites in several counties may pay different minimums for the same job. For another part of the state economy, see our look at the Port of Baltimore.

This article is general information, not legal or financial advice. Employers and workers should check the Maryland Department of Labor and their county for current rates.

Sources: Maryland Department of Labor