Maryland Minimum Wage 2026
Effective January 1, 2026 · Updated 2026-07-08
2,080 hrs/year
above federal
No scheduled
| City / County | Minimum |
|---|---|
Montgomery County (large employers) Mid-county and small-employer tiers differ. | $18.00 |
Highest: Montgomery County (large employers) at $18.00/hr
Overtime at 1.5× minimum is $22.50/hr. Estimate take-home with our hourly to salary calculator or Maryland tax calculator.
Legislative authority
Maryland's minimum wage is set by state law, typically enacted by the state legislature or approved by voters through ballot measures. TheMaryland Department of Labor (or equivalent agency) administers and enforces the wage floor. Federal law sets a floor of $7.25/hour — states cannot set rates lower than this under the Fair Labor Standards Act (FLSA), though states routinely exceed the federal minimum.
Maryland does NOT use automatic indexing
Unlike some states (Washington, Oregon, California), Maryland requires the state legislature to vote on each minimum wage increase. This means the rate is only raised when lawmakers pass new legislation — a process that can take years and often lags inflation. As a result, the real purchasing power of the minimum wage erodes over time unless political will aligns to pass a new law.
Current status: Check with the Maryland state legislature or Department of Labor for pending bills.
How rates are set in practice
- Proposed legislation: A legislator introduces a bill (or voters petition for a ballot measure) to raise the minimum wage.
- Committee review: The bill is debated in labor or commerce committees. Business groups, worker advocates, and economists testify about economic impacts.
- Floor vote: The full legislature votes. In some states, the governor must sign; in others (ballot measures), voter approval is final.
- Effective date: Once approved, the rate typically takes effect on January 1 of the following year, though some states phase in increases over multiple years or use mid-year (July 1) implementation dates.
Why federal minimum hasn't moved since 2009
The federal minimum wage (FLSA §206) is $7.25/hour — unchanged since July 24, 2009. Congress has not passed a raise despite inflation eroding its value by ~30% in real terms. This is why states have taken the lead: Maryland and 31 other states + DC now set minimums above $7.25. States and cities use various triggers (indexing, ballot measures, or legislative action) rather than waiting for federal action.
For workers and employers: Understanding how your state's minimum wage is determined helps you anticipate future changes and plan payroll budgets. States with indexing tend to have more stable, predictable rates; states without indexing are vulnerable to political cycles and inflation lag.
Maryland official source
Primary: U.S. Department of Labor — State minimum wage laws
Effective January 1, 2026. We cite this agency's official rates and update immediately when laws change.
Federal context
- Fair Labor Standards Act (FLSA) § 206: Federal floor is $7.25/hour (unchanged since 2009)
- U.S. Department of Labor: State Minimum Wage Laws
- Employers must pay the highest applicable rate: federal, state, or local.
Maryland city & local rates
1 major jurisdictions have rates above the Maryland state minimum. Each city's rate is sourced from:
- Montgomery County (large employers): Montgomery County, MD
How we keep this accurate
We monitor state legislative updates, Department of Labor releases, and city ordinances. When rates change effective January 1, July 1, or any other date, we update this page immediately — not weeks or months later.