The minimum wage in Maryland is $15.00 an hour for most employees as of October 2026. Tipped employees must be paid at least $3.63 an hour in cash, with tips bringing them up to $15.00, and workers under 18 can be paid 85% of the state rate.
I've taken this from the Maryland Department of Labor's minimum wage and overtime page and the U.S. Department of Labor's state tables, checked in October 2026. The rule most restaurants miss in Maryland isn't the rate. It's the tip credit wage statement the state requires every pay period.
Maryland's rates
| Worker | Rate (as of October 2026) |
|---|---|
| Most employees | $15.00 an hour |
| Tipped employees, minimum cash wage | $3.63 an hour |
| Maximum tip credit | $11.37 |
| Employees under 18 | 85% of the state rate |
To count as a tipped employee in Maryland, a worker must earn more than $30 a month in tips. The employer must cover any gap if wages plus tips fall below $15.00 an hour.
Paying workers under 18
Maryland lets employers pay employees under 18 at least 85% of the state minimum wage rate. Two things to watch. The rate moves with the state rate, so if Maryland's $15.00 ever changes, the under-18 floor changes with it. And once a worker turns 18, the full rate applies from that day, not from the next pay review. Note each young worker's date of birth when you hire them so the switch doesn't get missed.
The tip credit wage statement
Here's the Maryland rule I'd want every restaurant owner to know. The Maryland Department of Labor says restaurants that rely on tips to reach minimum wage must give employees a written or electronic wage statement for each pay period. It has to show the employee's effective hourly rate of pay, meaning the employer-paid cash wage plus tips. The state calls it a Tip Credit Wage Statement.
- Pay at least $3.63 an hour in cash to each tipped employee.
- Record tips for every shift.
- At the end of each pay period, work out the effective hourly rate including tips.
- Give the employee a written or electronic Tip Credit Wage Statement showing that rate.
- If the effective rate is under $15.00, pay the difference.
For how to share tips fairly between front and back of house, see my tip pooling guide.
Overtime in Maryland
Most employees must be paid 1.5 times their usual hourly rate for hours over 40 a week. Maryland has a 48-hour line for two groups: employees of bowling alleys, and staff at certain non-hospital residential care institutions, such as some nursing homes, assisted living and group homes. Federal law may still require overtime after 40 hours for those employers, so check both. My overtime laws guide has more on who's exempt.
Who's exempt from the Maryland minimum wage
The state lists exemptions from both minimum wage and overtime. Among them:
- Employees who meet the federal administrative, executive or professional definitions.
- Employees under 16 working less than 20 hours a week.
- Trainees in a public school special education programme.
- Non-administrative employees of organised camps.
- Employees of certain food and drink establishments grossing less than $400,000 a year.
- Employees canning, packing, freezing or first processing fruit, vegetables, poultry or seafood.
Some roles are exempt only from overtime and must still get the state minimum wage. The state's list includes certain staff selling or servicing cars, farm equipment, trailers or trucks, employees of a non-profit concert promoter, theatre, music festival or music pavilion, and employees of employers subject to certain railroad or federal motor carrier rules. Employees covered by the Secure Maryland Wage Act are also on the state's exemption list.
Related Maryland pay laws
The same Maryland Department of Labor section also covers the Healthy Working Families Act, which is the state's sick and safe leave law, plus equal pay, parental leave, adoption leave and the state's rules on unpaid wages and wage liens. If you're setting up payroll for a new Maryland employee, check sick and safe leave at the same time as the wage rate.
How Maryland got to $15
| Year (1 January) | Maryland rate |
|---|---|
| 2020 | $11.00 |
| 2021 | $11.75 |
| 2022 | $12.50 |
| 2023 | $13.25 |
| 2024 | $15.00 |
| As of October 2026 | $15.00 |
The U.S. Department of Labor's history table shows the final step from $13.25 to $15.00 arriving on 1 January 2024. The state rate isn't currently indexed, so it's held at $15.00 since.
Maryland compared with the region
| Jurisdiction | Minimum wage (as of October 2026) | Tipped cash wage |
|---|---|---|
| District of Columbia | $18.40 | $10.30 |
| Maryland | $15.00 | $3.63 |
| Delaware | $15.00 | $2.23 |
| Virginia | $12.77 | $2.13 |
| West Virginia | $8.75 | $2.62 |
| Pennsylvania | $7.25 | $2.83 |
Washington, D.C. is the big outlier next door. A Maryland business with staff who work inside D.C. pays them the D.C. rate for that work. Virginia is lower but rising on a set schedule, which I cover in my Virginia minimum wage guide.
Want AI doing the heavy lifting in your marketing?
I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.
My verdict
Maryland is a $15.00 state with one of the lowest tipped cash wages around, $3.63, and the trade-off is paperwork. Give tipped staff their Tip Credit Wage Statement every pay period, pay overtime after 40 hours unless you're sure an exception applies, and check your under-18 rates. That covers most of what goes wrong.
Frequently asked questions
What is the minimum wage in Maryland?
It's $15.00 an hour for most employees as of October 2026.
What is the tipped minimum wage in Maryland?
Employers must pay at least $3.63 an hour in cash, and wages plus tips must reach $15.00.
What is the minimum wage for under 18s in Maryland?
Employees under 18 must earn at least 85% of the state minimum wage rate.
What is a Tip Credit Wage Statement?
A written or electronic statement Maryland restaurants that rely on tips must give each pay period, showing the effective hourly rate including tips.
When is overtime due in Maryland?
After 40 hours a week for most employees, or after 48 hours for bowling alleys and certain residential care institutions.
Is Maryland's minimum wage going up?
No scheduled increase was shown on the official pages checked in October 2026.
Do Maryland tipped workers need a minimum amount of tips?
Yes. To count as a tipped employee, a worker must earn more than $30 a month in tips.
Are small restaurants exempt from Maryland's minimum wage?
Employees of certain food and drink establishments grossing less than $400,000 a year are on the state's exemption list, but federal law may still apply.
