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Maryland Nanny Tax Guide

2026

Last updated: February 10, 2026

Has State Income Tax
Quick Facts
ItemValueNotes
Minimum Wage$15.00/hr$15/hr statewide; Montgomery County $15.50; Howard County $15.50
Pay FrequencyTwice monthly
Overtime Rules1.5x after 40 hrs/week
Record Retention3 years
State Income Tax
Required

Withholding Form: MW507

Unemployment Insurance
Registration Required:Required

Registration: Register online

Workers' Compensation
Required

Threshold: employee earns $1,000+ gross/year

Paid Family & Medical Leave

Program: Maryland PFML

ItemValue
Employee ContributionYes
Max Weeks12 weeks

Yes -- 40 hrs/year; unpaid if <=14 employees; paid if 15+; Yes (eff Jan 2026; contributions from Oct 2024; 680+ hrs required)

Paid Sick Leave
Required

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
State-Specific

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 StateDescriptionForm Required
DCDC residents may be exempt from MD state taxMW507
PAPA residents may be exempt from MD state taxMW507
VAVA residents may be exempt from MD state taxMW507
WVWV residents may be exempt from MD state taxMW507
Required Forms
State Withholding Allowance Certificate
at-hire

Form MW507

Maryland state income tax withholding form

Purpose: Employee completes for state tax withholding

Combined Registration Application
as-needed

Maryland state form

Purpose: State compliance

DLLR/DUI 15/16
as-needed

Maryland state form

Purpose: State compliance

MW506 (quarterly)
as-needed

Maryland state form

Purpose: State compliance

MW508 (annual)
as-needed

Maryland state form

Purpose: State compliance

Key Deadlines
DeadlineDateDescriptionFrequency
New Hire ReportingWithin 20 days of hireReport new employees within 20 days to the state
at-event
Sources
Poppins Payroll State Resources
MEDIUM
Accessed: February 10, 2026

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