Maryland Minimum Wage 2026: $15.00 Statewide, Up to $18.00 in Montgomery County

Maryland’s statewide minimum wage is $15.00 an hour for employers of every size, in effect since January 1, 2024. It is not indexed, and no statewide increase is scheduled for 2027. Three counties pay more: Montgomery County ($18.00 at 51 or more employees, $16.50 at 11 to 50, $15.95 at 10 or fewer), Howard County ($16.00 for all employers) and Prince George’s County ($15.30), all as of July 1, 2026. Tipped employees can be paid a cash wage of $3.63, and workers under 18 can be paid 85% of the state rate.

Maryland at a glance

How the Maryland minimum wage is set

The state rate is written into Labor and Employment § 3-413. The Fair Wage Act schedule ended with $15.00 an hour beginning January 1, 2024, for large and small employers alike; the separate small-employer rate ($12.80 in 2023) was phased out at that point. The statute contains no inflation adjustment, so the statewide rate changes only when the General Assembly passes a new law. A 2026 proposal to guarantee the full minimum wage regardless of tips, SB 886, did not get out of committee. The next regular session convenes in January 2027.

County minimum wages

Counties can set a higher rate, and three do. The Maryland Department of Labor’s minimum wage page lists the rates in effect as of July 1, 2026:

• Montgomery County rates rise every July 1 by the CPI-W for the Washington-Baltimore area. The July 1, 2026 increase took large employers from $17.65 to $18.00, mid-size from $16.00 to $16.50 and small from $15.50 to $15.95, per the county Office of Human Rights. Tipped employees in the county must end up with at least the county rate.
• Howard County reached $16.00 for employers with 15 or more employees on January 1, 2025, and for smaller employers on July 1, 2026. The county’s page says increases after that follow the CPI-U starting in 2027; check the county for the figure.
• Prince George’s County is at $15.30 as of July 1, 2026, and the county council enacted CB-005-2025 in December 2025 to index its rate to the Consumer Price Index.

Tipped employees

For employees who customarily receive more than $30 a month in tips, the employer may count tips toward the minimum wage, but the tip credit may not exceed the minimum wage less $3.63 (§ 3-419). In other words the cash wage is at least $3.63, and the U.S. Department of Labor table lists the resulting maximum credit at the state rate as $11.37. The employer must make up any shortfall, and restaurants that use the tip credit must give each tipped employee a written or electronic statement every pay period showing the effective hourly rate from cash wages plus reported tips.

Exceptions

• Under 18: employers may pay 85% of the state minimum wage. At $15.00, that is $12.75 an hour (0.85 × $15.00).
• Small employers: no lower statewide rate since January 1, 2024. Montgomery County still has size tiers.
• Overtime: 1.5 times the usual rate after 40 hours a week for most employees; see Maryland labor laws for employers for the exceptions and the break, final pay and sick leave rules.

What this means for hiring

Maryland requires the wage range in every job posting, from every employer, so the number in the ad has to be right for the county the job is in. A role in Rockville starts from $18.00 at a large employer; the same role in Frederick starts from $15.00. In practice the floor is rarely the going rate for frontline work, and what decides who applies is the figure in the first line of the ad. To see what a hire costs at the wage you actually pay, including employer taxes and FAMLI contributions from 2027, use the employee cost calculator.

Frequently asked questions

Part of Boostpoint’s minimum wage by state series.