Tipped minimum wage / Maryland

By NorseHorse. Rates in force on October 15, 2026, checked against the sources at the bottom of this page. General information, not legal advice.

What employers must pay

In Maryland, the minimum wage is $15.00 an hour. An employer can pay a tipped employee as little as $3.63 an hour in cash, as long as tips bring the total to at least $15.00. The difference, $11.37, is the tip credit.

Montgomery, Howard and Prince George's counties set higher county minimums; employers may pay workers under 18 85% of the state rate.

Who counts as a tipped employee: more than $30 a month in tips.

If your cash wage plus tips comes up short of $15.00 an hour in a workweek, your employer has to make up the difference.

What changes next

No change to the Maryland minimum wage is scheduled. The state rate is not tied to inflation, so it stays at $15.00 until lawmakers change it. County rates change on their own schedules.

Local and regional rates

Some places in Maryland have their own minimum wage or a regional rate. If you work there, the rate listed here applies.

Tip pooling and service charges

Maryland requires tipped employees to keep all their tips but expressly allows tip pooling; federal rules apply on who may join, and employers, managers and supervisors may not keep tips. Restaurants using a tip credit must give a tip credit wage statement each pay period.

Overtime

Time and a half after 40 hours a week, no daily overtime (48 hours for bowling alleys and some residential care facilities, 60 for some farm work). For tipped workers overtime is 1.5 times the full $15.00 minus the $11.37 tip credit, so at least $11.13 an hour in cash.

Taxes on your tips

Maryland taxes wage income, and tips are wages, so its income tax applies to your tips. Federal income tax, Social Security and Medicare still apply. The federal tip deduction can cut the income tax part: see how the No Tax on Tips deduction works.

Check a week's pay

If you are underpaid

Start by comparing your pay stubs with your own record of hours and tips. If the numbers don't add up, you can file a complaint with the Maryland Department of Labor, Division of Labor and Industry, Employment Standards Service: how to file. You can also call the U.S. Department of Labor, Wage and Hour Division, at 1-866-487-9243.

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