Quick Facts
| Item | Value | Notes |
|---|---|---|
| Minimum Wage | $15.00/hr | $15/hr statewide; Montgomery County $15.50; Howard County $15.50 |
| Pay Frequency | Twice monthly | |
| Overtime Rules | 1.5x after 40 hrs/week | |
| Record Retention | 3 years |
State Income Tax
Withholding Form: MW507
Unemployment Insurance
Registration: Register online
Workers' Compensation
Threshold: employee earns $1,000+ gross/year
Paid Family & Medical Leave
Program: Maryland PFML
Yes -- 40 hrs/year; unpaid if <=14 employees; paid if 15+; Yes (eff Jan 2026; contributions from Oct 2024; 680+ hrs required)
| Item | Value |
|---|---|
| Employee Contribution | Yes |
| Max Weeks | 12 weeks |
Paid Sick Leave
Accrual Rate: Varies (40hrs/year)
Annual Cap: 40 hrs
Yes -- 40 hrs/year; unpaid if <=14 employees; paid if 15+; Yes (eff Jan 2026; contributions from Oct 2024; 680+ hrs required)
New Hire Reporting
Deadline: Within 20 days of hire
Special Requirements
DC/PA/VA/WV residents may be exempt from MD state tax; Montgomery County has enhanced sick leave (1hr/30hrs, max 32hrs paid + 24hrs unpaid)
Tax Reciprocity Agreements
| With State | Description | Form Required |
|---|---|---|
| DC | DC residents may be exempt from MD state tax | MW507 |
| PA | PA residents may be exempt from MD state tax | MW507 |
| VA | VA residents may be exempt from MD state tax | MW507 |
| WV | WV residents may be exempt from MD state tax | MW507 |
Required Forms
Form MW507
Maryland state income tax withholding form
Purpose: Employee completes for state tax withholding
Maryland state form
Purpose: State compliance
Key Deadlines
| Deadline | Date | Description | Frequency |
|---|---|---|---|
| New Hire Reporting | Within 20 days of hire | Report new employees within 20 days to the state | at-event |
State Agencies
Sources
Frequently asked
- Do I owe nanny tax in Maryland?
- If you pay a household employee $3,000 or more in 2026, you owe federal FICA (Social Security and Medicare). If you pay $1,000 or more in any calendar quarter, you owe FUTA. Maryland state unemployment kicks in once you exceed the state's wage threshold — typically the first $8,500 of wages.
- What is the Maryland SUI rate for a new household employer?
- New household employers in Maryland start at 2.6%, applied to the first $8,500 of each employee's wages per year. Your rate can change once the state assigns you an experience rating, usually after 2–3 years.
- How much state income tax do I withhold for a Maryland nanny?
- Maryland uses progressive tax brackets. Your employee's state income tax withholding depends on their expected annual wages and filing status per their state withholding certificate. CareTax's calculator handles bracketed withholding automatically for every pay run.
- What forms do I need to file for a household employee in Maryland?
- Federally: Schedule H (filed with your personal Form 1040), W-2 and W-3 (given to your employee and filed with the SSA), and quarterly EFTPS deposits if your liability exceeds $1,000/year. In Maryland: new-hire reporting, quarterly SUI filings, and any required state income tax withholding returns. CareTax generates all federal reference documents and points you to the Maryland state portals.