Maryland Minimum Wage: Rate, Tipped Wage, and Local Rules

As of 2026, Maryland's statewide minimum wage is $15.00 per hour for employers of every size. Maryland reached this rate on January 1, 2024, when the Fair Wage Act of 2023 accelerated the increase and eliminated the earlier split between large and small employers. That figure is more than double the federal floor of $7.25 per hour set by the Fair Labor Standards Act (FLSA), and because Maryland's rate is higher, Maryland workers are entitled to the state rate. Maryland does not currently index its minimum wage to inflation, so the $15.00 figure is set by statute rather than by an automatic annual cost-of-living formula. Because rates can be changed by the legislature and some counties set their own higher minimums, always confirm the current number with the Maryland Department of Labor before relying on it.

How Maryland's minimum wage works

Maryland's minimum wage is established under the Maryland Wage and Hour Law. The $15.00 rate applies to most employees regardless of how many people the employer has on payroll. This is a meaningful change from prior years, when Maryland phased the increase in on different timelines for businesses with 15 or more employees versus those with fewer than 15. Since January 1, 2024, that distinction is gone at the state level: virtually all covered employers must pay at least $15.00 per hour.

When state and federal minimum wage law both apply, the employer must pay the higher of the two. Because $15.00 exceeds the federal $7.25, the Maryland rate controls for most Maryland workers. If a local county minimum is higher still, the local rate controls within that county. The general rule is simple: the employee gets the highest applicable minimum.

The tipped wage and the tip credit

Maryland allows employers of tipped employees to pay a lower direct cash wage and count a portion of the worker's tips toward the minimum wage. This is called the tip credit. Under Maryland law, the cash wage paid directly to a tipped employee can be as low as $3.63 per hour, provided the employee's tips bring total earnings up to at least the full $15.00 per hour minimum (or the higher local minimum, where one applies).

Key conditions on the tip credit in Maryland include:

• The tip make-up rule. If an employee's cash wage plus tips does not reach the full applicable minimum wage in a given pay period, the employer must make up the difference. The worker can never lawfully earn less than the full minimum once tips are counted.
• Who counts as tipped. A tipped employee is generally one who regularly earns more than $30 a month in tips, such as servers and bartenders.
• Tip ownership. Tips belong to the employee. Employers may use valid tip pooling arrangements among employees who customarily receive tips, but managers and owners generally may not take a share.
• Notice and tip credit wage statements. Maryland requires employers in certain counties to provide tipped workers with a written or electronic wage statement showing the effective hourly tip rate for each pay period, so workers can verify they reached the full minimum.

By comparison, the federal tipped cash wage floor under the FLSA is just $2.13 per hour. Maryland's $3.63 cash wage is higher, so it controls in Maryland.

Scheduled increases and inflation indexing

Maryland's statewide minimum wage reached its current $15.00 target on January 1, 2024, ahead of the original schedule. Unlike a number of states, Maryland does not currently tie its statewide rate to an annual consumer price index adjustment, so the state figure does not automatically rise each January. Any future statewide increase would require new legislation. Because lawmakers can revisit the rate, treat $15.00 as the figure "as of 2026" and verify it before making payroll or wage-claim decisions.

County minimum wages: Montgomery and Howard

Two Maryland counties set their own minimum wages that are higher than the state rate, and these local rates do adjust over time. If you work in one of these counties, the local minimum governs:

• Montgomery County. Montgomery County has a tiered minimum wage based on employer size, with the largest employers paying the highest rate. The county adjusts its rates annually, typically each July 1, and the top tier has exceeded $17 per hour. Confirm the current Montgomery County figures and your employer's size tier with the county's Office of Human Rights.
• Howard County. Howard County also sets a local minimum wage above the state rate, phased in by employer size and updated on a published schedule. Confirm the current Howard County rate with the county before relying on a specific number.

Because these county rates change on annual schedules and depend on employer size, this article does not lock in a single local number. Always check the county's official source for the rate in effect for your pay period.

How to enforce your right to the minimum wage

If you believe you have been paid less than Maryland's minimum wage, or that your employer took an improper tip credit, you have options:

• Keep records. Save pay stubs, schedules, time records, and any tip statements. Note the hours you worked and what you were actually paid.
• File a claim with the state. The Maryland Department of Labor, Division of Labor and Industry (Employment Standards Service), investigates wage complaints and enforces the Wage and Hour Law.
• Consider a private lawsuit. Maryland law allows employees to recover unpaid wages, and in some cases additional damages and attorney's fees, through the courts. An employment attorney can advise on deadlines and remedies.
• Local counties. If your claim involves a Montgomery County or Howard County rate, the county's own enforcement office may also be a resource.

Retaliation against a worker for asserting wage rights is prohibited. An employer generally may not fire, demote, or punish you for filing or supporting a wage complaint.

Where to confirm the current rate

For the authoritative, current statewide minimum wage and tipped wage figures, use the Maryland Department of Labor (its Division of Labor and Industry / Employment Standards Service publishes the current minimum wage and overtime rules). For county-specific rates, check the official sites for Montgomery County and Howard County. Because rates and rules can change, treat the figures here as a starting point and verify with the official source before acting on them.

Official Maryland Sources

This page is based on Maryland employment law. Rules and figures change — verify the current details directly with the official Maryland sources below. This is general legal information, not legal advice.

• Maryland Department of Labor, Division of Labor and Industry (Employment Standards Service) — official Maryland agency.
• File a Wage Claim - Employment Standards Service (Wage Claim Form)
• Maryland Labor and Employment Article, Title 3 (Wage Payment and Collection Law, §3-505)

Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Maryland state law.