Maryland's minimum wage of $15 in 2026 is among the highest in the United States, and it is significantly higher than than the base federal minimum wage of $7.25 still used in 20 states.
Assuming a standard 40-hour work week, the weekly minimum wage in Maryland is $600. For full-time employees working 52 weeks per year, the annual minimum wage in Maryland is $31.2K.
Based on $15/hr minimum
Based on $15/hr minimum
The minimum wage rate of Maryland and its neighboring states ranges from $7.25 to $15, with an average of $11.75. Maryland, at $15, has the highest hourly minimum wage within this group of states. Delaware shares the same $15 hourly rate as Maryland. Virginia ($12.77), West Virginia ($8.75), and Pennsylvania ($7.25) have lower hourly rates than Maryland.
While the general minimum wage is $15 per hour in Maryland, there are several exceptions where workers may legally receive less than this amount:
Employers may pay tipped employees (those receiving >$30/month in tips) a reduced cash wage. Tips + cash wages must reach at least $15.00/hr statewide. Employer makes up any shortfall. Restaurant employers must provide written wage statements showing effective hourly rate.
Employees under 18 years of age must earn at least 85% of the state minimum wage rate. This applies during their first six months of employment.
Federal law permits employers to pay workers under 20 years old a training wage for the first 90 consecutive calendar days of employment.
Certain establishments selling food and drink for on-premises consumption with annual gross sales less than $400,000 are exempt from Maryland's minimum wage law.
Agricultural workers are subject to different overtime thresholds (>60 hrs/week) and may have minimum wage exemptions for small farm operations. Certain farm equipment salespersons also have overtime exemptions.
Establishments engaged in the first canning, packing, or freezing of fruits, vegetables, poultry, or seafood are exempt from certain provisions.
Seasonal amusement and recreational establishments meeting certain criteria are exempt from overtime requirements (though must still pay state minimum wage).
Salaried workers meeting duties and salary-level tests (≥$1,128/week as of Jan 1, 2025) are exempt from minimum wage and overtime per FLSA.
Employees whose primary duty is making sales away from the employer's place of business are exempt from minimum wage and overtime.
Volunteers for educational, charitable, religious, and non-profit organizations who earn at least the state minimum wage rate may be exempt from overtime.
Immediate family members of the employer (spouse, parent, child) are exempt from Maryland minimum wage requirements.
Maryland's cost of living index for 2025 is 115.4, which places it as the 7th most expensive state to live in the United States.
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Assuming a standard 40-hour work week, the real wage in Maryland, adjusted for the state’s cost of living index of 115.4, is approximately $13 per hour. This means that while the nominal minimum wage is $15 per hour, the purchasing power of those earnings is lower due to Maryland's higher cost of living expenses. For full-time employees, the real weekly earnings amount to roughly $519.93, translating to an annual purchasing power of $27,036.40 when working 52 weeks per year.
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According to the most recent data, the median household income in the United States has seen a significant increase in 2023.
Maryland sets a state minimum wage under the Maryland Wage and Hour Law, which is higher than the federal minimum wage and applies to most employers in the state. The state rate is established by law and is enforced by the Maryland Department of Labor, with a requirement that employers pay at least the applicable Maryland minimum wage or any higher local rate where applicable.