PAYROLL TAX RATES
Maryland payroll tax rates
Unemployment tax, income tax withholding, minimum wage and paid leave in Maryland, each with its effective date and the agency page it comes from.
Unemployment insurance
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Maryland Department of Labor, Division of Unemployment Insurance (opens in a new tab) | Maryland Department of Labor, Employers and Third-Party Agents (opens in a new tab) | |
| Taxable wage base | $8,500 | Maryland Department of Labor, Tax Rates and Quarterly Reporting (opens in a new tab) | |
| Wage base set each year | No | Md. Code, Labor and Employment 8-607 (opens in a new tab) | |
| New employer rate | 1% to 2.6%1.0% to 2.6%: the highest of 1%, the state's 5-year benefit cost rate or the table rate for a 0.0000 benefit ratio, capped at 2.6%. Out-of-state construction contractors pay the Maryland construction industry average, not below the new employer rate.Surcharges included | Maryland Department of Labor, Tax Rates and Quarterly Reporting (opens in a new tab) | |
| Employee contribution | None | Md. Code, Labor and Employment 8-607 (opens in a new tab) | |
| When an employer becomes liable | An employer who employs at least 1 person within the state, regardless of payroll or weeks. | Maryland Department of Labor, Tax Rates and Quarterly Reporting (opens in a new tab) | |
| Experience rate after | Earned rate once the account was chargeable throughout the rating year before the computation date and reported taxable wages in the 2 rating years before it (otherwise 3 rating years) | Md. Code, Labor and Employment 8-610 (opens in a new tab) | |
| Quarterly report due | Within 1 month of the end of each calendar quarter: April 30, July 31, October 31, January 31 | Maryland Department of Labor, Tax Rates and Quarterly Reporting (opens in a new tab) | |
| FUTA credit reduction | Not yet set | US DOL OUI, FUTA Credit Reductions (opens in a new tab) |
Checked on October 5, 2026.
Income tax withholding
Checked on October 5, 2026.
Minimum wage
| Item | Value | Effective | Source |
|---|---|---|---|
| Minimum wage | $15.00 | Md. Code, Labor and Employment 3-413 (opens in a new tab) | |
| Tipped employees, cash wage | $3.63 | Md. Code, Labor and Employment 3-419 (opens in a new tab) | |
| Rises with inflation | No | Md. Code, Labor and Employment 3-413 (opens in a new tab) | |
| Local rates | Montgomery County (from July 1, 2026, indexed to CPI-W): $18.00 for 51+ employees, $16.50 for 11 to 50, $15.95 for 10 or fewer. Howard County: $16.00 from July 1, 2026. Prince George's County: $15.30 from July 1, 2026. | Maryland Department of Labor, Maryland Minimum Wage and Overtime Law (opens in a new tab) |
Checked on October 5, 2026.
Paid family and medical leave
Maryland Family and Medical Leave Insurance (FAMLI)
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Maryland Department of Labor, FAMLI Division (opens in a new tab) | Maryland FAMLI, For employers (opens in a new tab) | |
| Status | Contributions start January 1, 2027 | Maryland FAMLI, For employers (opens in a new tab) | |
| Total rate | 0.9% | Maryland FAMLI, FAQs: Contributions (April 2026, PDF) (opens in a new tab) | |
| Employee share | Up to 0.45% | Maryland FAMLI, FAQs: Contributions (April 2026, PDF) (opens in a new tab) | |
| Employer share | 0.45% | Maryland FAMLI, Make contributions (opens in a new tab) | |
| Wage cap | $184,500 | Maryland FAMLI, Make contributions (opens in a new tab) | |
| Small employers | 14 or fewer employees, counted in all states: no employer shareCounted under one EIN, in and outside Maryland, contractors excluded: each quarter until a full year of reports, then the 4-quarter average | Maryland FAMLI, FAQs: Contributions (April 2026, PDF) (opens in a new tab) |
Checked on October 5, 2026.
Workers' compensation
| Item | Value | Effective | Source |
|---|---|---|---|
| Required | From the first employee | Maryland Workers' Compensation Commission, Questions and Answers for Employers (opens in a new tab) | |
| State fund | Chesapeake Employers' Insurance Company (opens in a new tab) | Maryland Workers' Compensation Commission, Questions and Answers for Employers (opens in a new tab) |
Checked on October 5, 2026.
What a paycheck costs the employer in Maryland
Employer taxes and contributions on one employee's pay in Maryland, per check and for the year, at the rates a new employer pays. State rates are the ones on this page; federal rates are the ones on the federal payroll tax rates page.
Pay$
Pay frequency
- Employer taxes and contributions per check
- $213.47 to $250.39
- First check of the year
- Cost per check
- $2,521.16 to $2,558.08
- Pay included, first check
- Cost per year
- $64,717.00 to $64,853.00
- Pay included
Not in the total: Maryland Family and Medical Leave Insurance (FAMLI), employer share (contributions start January 1, 2027).
Later checks cost less once pay passes a wage base: the year's last check costs $2,484.23, pay included.
| Item | Rate | First check | Per year | Source |
|---|---|---|---|---|
| Social Security, employer share | 6.2% on the first $184,500 | $143.08 | $3,720.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Medicare, employer share | 1.45% of all pay | $33.46 | $870.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Federal unemployment (FUTA) | 0.6% on the first $7,000After the full 5.4% credit. Employers in a credit reduction state pay more. | $13.85None after check 4 | $42.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Maryland unemployment | 1% to 2.6% on the first $8,5001.0% to 2.6%: the highest of 1%, the state's 5-year benefit cost rate or the table rate for a 0.0000 benefit ratio, capped at 2.6%. Out-of-state construction contractors pay the Maryland construction industry average, not below the new employer rate. | $23.08 to $60.00None after check 4 | $85.00 to $221.00 | Maryland Department of Labor, Tax Rates and Quarterly Reporting (opens in a new tab) |
| Maryland Family and Medical Leave Insurance (FAMLI), employer share | Contributions start January 1, 2027 | Not in the total | Maryland FAMLI, For employers (opens in a new tab); Maryland FAMLI, Make contributions (opens in a new tab) | |
| Employer taxes and contributions | $213.47 to $250.39 | $4,717.00 to $4,853.00 | ||
| Pay | $2,307.69 | $60,000.00 | ||
| Pay plus employer costs | $2,521.16 to $2,558.08 | $64,717.00 to $64,853.00 | ||
Checked on October 5, 2026. A figure that is not yet collected is left out of the total. Shows one employee's pay for a full calendar year, every check at the rates in force on October 13, 2026, with all pay subject to these taxes, the new employer rates and the full employer shares the law sets. An employer may choose to pay an employee's share too. Benefits and other costs are not included.
Common questions
A new employer pays 1.0% to 2.6%: the highest of 1%, the state's 5-year benefit cost rate or the table rate for a 0.0000 benefit ratio, capped at 2.6%. Out-of-state construction contractors pay the Maryland construction industry average, not below the new employer rate. The tax applies to the first $8,500 of each employee's wages a year.
Yes: 4.75% to 6.5%. Supplemental wages: 6.5% flat rate.
$15.00 an hour. Some cities and counties set their own rates. See the table above.
Yes: Maryland Family and Medical Leave Insurance (FAMLI), from January 1, 2027.
WORKLIO HCM
Payroll taxes calculated, deposited and filed in every state
Worklio HCM calculates, deposits and files payroll taxes in every state and locality, city, county and school district taxes included, and rates and rules update without you noticing. We help open state accounts when you hire somewhere new. Payroll and HCM for companies with 50 to 50,000+ employees.
Rates in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
The agency page or document behind each figure, as checked.
- Maryland Department of Labor, Employers and Third-Party Agents (opens in a new tab)
- Maryland Department of Labor, Tax Rates and Quarterly Reporting (opens in a new tab)
- Md. Code, Labor and Employment 8-607 (opens in a new tab)
- Md. Code, Labor and Employment 8-610 (opens in a new tab)
- US DOL OUI, FUTA Credit Reductions (opens in a new tab)
- Comptroller of Maryland, Tax Guidance - Employer Withholding (opens in a new tab)
- Comptroller of Maryland, Maryland Employer Withholding Guide, effective January 2026 (revised December 2025, PDF) (opens in a new tab)
- Comptroller of Maryland, Form MW507, Employee's Maryland Withholding Exemption Certificate (2026, PDF) (opens in a new tab)
- Md. Code, Labor and Employment 3-413 (opens in a new tab)
- Md. Code, Labor and Employment 3-419 (opens in a new tab)
- Maryland Department of Labor, Maryland Minimum Wage and Overtime Law (opens in a new tab)
- Maryland FAMLI, For employers (opens in a new tab)
- Maryland FAMLI, FAQs: Contributions (April 2026, PDF) (opens in a new tab)
- Maryland FAMLI, Make contributions (opens in a new tab)
- Maryland Workers' Compensation Commission, Questions and Answers for Employers (opens in a new tab)
- IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab)
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes.