Maryland Pay Stub Requirements & Payroll Taxes

Maryland has one of the more detailed pay stub laws in the country: since October 1, 2024, nearly all private employers must give each employee a written or online pay statement every payday listing specific items, with penalties of up to $500 per employee per statement. Around it sit a $15.00 minimum wage (higher in Montgomery and Howard counties), paid sick and safe leave, a progressive state income tax topping out at 6.5%, and a county income tax on every stub. Contributions for the state's new paid family leave programme start in January 2027.

It's a general guide, not legal or tax advice. For your specific situation, check the source links below or talk to a licensed payroll, tax, or employment-law professional.

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Is a pay stub required in Maryland?

Under Chapter 305 of the Laws of 2024 (effective October 1, 2024), Maryland private-sector employers with at least one employee must provide a written or online pay statement each payday. At the time of hire, employers must also give written notice of pay rate, regular paydays, and leave benefits.

Required on every wage statement — Md. Code, Labor and Employment §3-504 (as amended by Ch. 305, 2024):

Employer's name (as registered with the State of Maryland), address, and telephone number
Date of pay and the beginning and ending dates of the pay period
Number of hours worked during the pay period (unless the employee is exempt from overtime)
Rates of pay
Gross and net pay earned during the pay period
Amount and description of each deduction made from wages
Bonuses, commissions, or other bases of pay, and piece rates/number of pieces completed if applicable

Penalty for non-compliance (Md. Code, Labor and Employment §3-504 / Ch. 305, Laws of 2024 (SB 38)): The Commissioner of Labor and Industry may impose an administrative penalty of up to $500 per employee for each pay statement not provided, or provided but non-compliant

How often must employees be paid?

Employers must set regular pay periods and pay each employee at least once every 2 weeks or twice a month. Employees classified as administrative, executive, or professional may be paid less frequently. Wages must be paid in U.S. currency, by check convertible to cash at face value, or via authorized direct deposit/payroll card with fees disclosed in writing.

Source: Md. Code, Labor and Employment §3-502

Maryland minimum wage

Maryland's minimum wage reached $15.00 an hour on January 1, 2024 for employers of all sizes. Montgomery and Howard counties set higher local rates.

$15.00 per hour statewide, effective January 1, 2024Montgomery County, from July 1, 2026: $18.00 for employers with 51 or more employees, $16.50 for 11 to 50, and $15.95 for 10 or fewer. Howard County also sets its own higher rate. Employers pay the local rate for work done in those counties.

Tipped employees: a cash wage of at least $3.63 per hour, provided tips bring total pay to the full minimum wage. Overtime for tipped employees is calculated on the full minimum wage, not the cash wage.

Source: Md. Code, Labor and Employment § 3-413; Maryland Department of Labor; Montgomery County Office of Human Rights

Overtime & double time

Maryland requires time and a half for hours over 40 in a workweek. There is no daily overtime rule.

Trigger	Pay rate
Daily overtime	No state daily overtime rule.
Weekly overtime	1.5× the regular rate for hours beyond 40 in a workweek.
7th consecutive workday	No seventh-consecutive-day rule.

Source: Md. Code, Labor and Employment § 3-415; Maryland Department of Labor

Meal & rest break requirements

Maryland has no general meal-break rule for adults. Minors under 18 may not work more than 5 consecutive hours without a non-working period of at least 30 minutes. Retail employers with 50 or more retail employees must give a 30-minute break for shifts of more than 6 consecutive hours.

Under the Healthy Retail Employee Act, covered retail employees working more than 4 and up to 6 consecutive hours get a 15-minute break, which can be waived by written agreement, and shifts over 8 hours add a 15-minute break for each further stretch of more than 4 hours.

If a break is missed:Maryland sets no premium pay for missed breaks; violations are handled by the Department of Labor.

Source: Md. Code, Labor and Employment §§ 3-210, 3-710

Maryland state income tax

Maryland has a progressive state income tax with rates from 2% to 6.5% for the 2025 tax year (the two top brackets, 6.25% and 6.5%, were added by 2025 legislation effective for tax years after December 31, 2024). In addition, every Maryland county and Baltimore City levies its own local income tax (piggyback tax) withheld alongside the state tax, with local rates generally between about 2.25% and 3.30%.

2025 Maryland State Income Tax Rate Schedule I (Single / Married Filing Separately)

Taxable income	Rate
$0 – $1,000	2.00%
$1,000 – $2,000	3.00% ($20 plus 3% of excess over $1,000)
$2,000 – $3,000	4.00% ($50 plus 4% of excess over $2,000)
$3,000 – $100,000	4.75% ($90 plus 4.75% of excess over $3,000)
$100,000 – $125,000	5.00% ($4,697.50 plus 5% of excess over $100,000)
$125,000 – $150,000	5.25% ($5,947.50 plus 5.25% of excess over $125,000)
$150,000 – $250,000	5.50% ($7,260 plus 5.5% of excess over $150,000)
$250,000 – $500,000	5.75% ($12,760 plus 5.75% of excess over $250,000)
$500,000 – $1,000,000	6.25% ($27,135 plus 6.25% of excess over $500,000)
Over $1,000,000	6.50% ($58,385 plus 6.5% of excess over $1,000,000)

Brackets shown are Schedule I for single filers/married filing separately/dependents; married filing jointly and head-of-household filers use Schedule II with wider thresholds (e.g., the top brackets start at $600,000 and $1,200,000). This is on top of a separate mandatory local (county/Baltimore City) income tax withheld from every paycheck.

Source: Comptroller of Maryland, Tax Computation Worksheet Schedules I and II (2025); Comptroller of Maryland Tax Alert on 2025 legislative session rate changes

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Paid sick leave

Maryland's Healthy Working Families Act requires earned sick and safe leave. Employers with 15 or more employees must pay for it; smaller employers must provide it unpaid.

Rule	Detail
Accrual rate	At least 1 hour for every 30 hours worked. No accrual is required in a two-week pay period in which the employee worked fewer than 24 hours in total.
Minimum available per year	Up to 40 hours a year; an employer may front-load the 40 hours instead.
Accrual cap	Up to 40 unused hours carry over, as long as the total balance stays at or below 64 hours. Front-loaded leave does not have to carry over.
Eligibility & carryover	Employees can be required to wait 106 days from hire before using leave.

Paid out at termination?Not required at separation unless the employer's policy says otherwise.

Source: Md. Code, Labor and Employment § 3-1301 et seq.; Maryland Department of Labor

Vacation & paid time off (PTO)

Maryland does not require paid vacation. What happens to unused vacation at separation depends on whether the employer told employees in writing, at hiring, that it would be lost.

Earned vacation is part of the wages due at termination unless a written policy, given at hiring, limits it.

"Use-it-or-lose-it" policies:Allowed if set out in a written policy communicated to the employee at the time of hire.

Paid out at termination?Yes, unless the employer's written policy — given to the employee at hiring — says unused vacation is forfeited at separation.

Source: Md. Code, Labor and Employment § 3-505; Maryland Guide to Wage Payment

Final paycheck rules

Maryland sets one deadline for every separation: final wages are due on or before the day they would have been paid had employment continued.

Situation	Final wages due
Fired or laid off	By the regular payday on which the wages would have been paid.
Quits or resigns (notice makes no difference)	By the regular payday — the same as a discharge.

Late final pay:No per-day penalty, but if wages are withheld without a bona fide dispute, a court may award the employee up to three times the unpaid wages plus reasonable attorney's fees and costs.

Source: Md. Code, Labor and Employment §§ 3-505, 3-507.2

Other Maryland payroll taxes employers should know

Maryland employers must withhold both the state income tax and the employee's county (or Baltimore City) local income tax, which is remitted together with state withholding. Employers also pay state unemployment insurance tax to the Maryland Department of Labor. Maryland does not have a separate state disability insurance payroll tax.

Tax	Rate	Notes
Local (county/Baltimore City) income tax withholding	Set by each county and Baltimore City: 2.25% to 3.30% for 2026	Withheld alongside state income tax based on the employee's county of residence. Kent County moved to 3.30% for 2026 and Allegany's rate was adjusted; nonresidents are withheld at the lowest local rate, 2.25%.
State Unemployment Insurance (SUI)	2026 contributory rates range from 0.30% to 7.50% (Table A, the lowest table, in effect); new employer rates generally 1.0%-2.6%; taxable wage base is the first $8,500 in wages per employee per year	Administered by the Maryland Department of Labor, Division of Unemployment Insurance; individual rates depend on employer benefit ratio.
Family and Medical Leave Insurance (FAMLI)	Not yet withheld — contributions begin with the first pay period of January 2027	Employers may deduct up to half of the contribution from employees; benefits begin January 1, 2028. Employers with 14 or fewer employees are exempt from the employer share.

Source: Maryland Department of Labor, Division of Unemployment Insurance - Tax Rates and Quarterly Reporting; Comptroller of Maryland local tax rate chart

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Common questions about Maryland pay stubs

Does my Maryland pay stub have to show hours if I'm salaried?

No. Hours worked are required on the pay statement only for employees who are not exempt from overtime. Every other item — employer details, pay dates, rates, gross and net pay, and each deduction — is required for everyone.

When will the FAMLI deduction start on Maryland pay stubs?

With the first pay period of January 2027. Employers may pass up to half of the contribution to employees; benefits become available on January 1, 2028.

Will my unused vacation be paid when I leave a Maryland job?

Yes, unless your employer told you in writing when you were hired that unused vacation is lost at separation. Sick and safe leave is different — it is not paid out unless the policy says so.

Why is there a county tax on my Maryland pay stub?

Every Maryland county and Baltimore City levies a local income tax, withheld with the state tax based on where you live. Rates run from 2.25% to 3.30% for 2026.

Guides that go with this page

Maryland's rules decide what has to appear on the stub. These cover what the figures on it actually mean, wherever you work.

What a pay stub is, line by line — Every section of a stub and what each figure means.
Gross pay vs. net pay — Why the amount that reaches your bank is a quarter smaller than your salary.
Why a bonus check looks so small — Supplemental wage withholding is a prepayment, not a tax rate.
When the deposit doesn't match the stub — Split deposits, garnishments and the gap between net pay and the amount in your account.

Sources & references

Every figure on this page links back to the primary source below. State and federal payroll rules change — always confirm current-year figures directly with the agency before relying on exact dollar amounts.

Last checked: October 2026. See our editorial standards & sources for how these figures are verified.