Montgomery County minimum wage 2026
The minimum wage in Montgomery County is $18.00 an hour in 2026 (Large employers, 51 or more employees), $3.00 above the Maryland rate of $15.00. Montgomery County pays three different minimums depending on the size of the employer, and all three change every July 1. Employers with 51 or more workers pay the top rate; nonprofits and Medicaid-funded home care providers with 11 or more workers pay the mid-sized rate whatever their size.
Contents11 sections
At a glance
| Minimum wage now | $18.00 an hour (Large employers, 51 or more employees), since July 1, 2026134 |
|---|---|
| Next change | All three tiers change again on July 1, 2027. |
| Tipped employees | $4.00 cash wage, tip credit up to $14.00134 |
| Full-time pay | $720 a week, $37,440 a year at 40 hours a week before taxes · calculate for your hours |
| Enforced by | Montgomery County Office of Human Rights, 240-777-8450 |
What to know about the Montgomery County minimum wage
Montgomery County's minimum wage comes from Enacted Bill 28-17, passed in 2017. It phased in $15.00 by employer size: large employers reached it on July 1, 2021, mid-sized employers on July 1, 2023 and small employers on July 1, 2024.11 From there, the large-employer rate has followed Washington-area inflation, reaching $17.65 in 2025 and $18.00 on July 1, 2026.1
The tiers matter more here than in most places. On July 1, 2026 the gap between the large and small rates was $2.05 an hour. The county counts employees to place an employer in a tier, but 501(c)(3) nonprofits and home care agencies that get at least 75% of their revenue from Medicaid pay the mid-sized rate once they have 11 workers, which keeps large nonprofit and home care employers below the top rate.13
Because the smaller tiers get an extra 1% on top of inflation, they close the gap slowly; the mid-sized rate rose the maximum $0.50 to $16.50 in 2026, while the small rate rose $0.45.1
In 2026 tipped workers get a county cash wage of $4.00, above the state's $3.63. Employers that use the tip credit owe the Office of Human Rights a quarterly report within 30 days after each quarter, on a form the office hosts.14 The office answers questions at 240-777-8450, and the Maryland Department of Labor takes wage claims.2
All 2026 rates
Which rate applies depends on how many employees the employer has: 51 or more pay $18.00, 11 to 50 pay $16.50, and 10 or fewer pay $15.95, all from July 1, 2026. A 501(c)(3) nonprofit, or a home care provider that gets at least 75% of its revenue from Medicaid, pays the mid-sized rate once it has 11 or more employees, even if it has more than 50.
The two lower tiers are designed to catch up with the large-employer rate. Each July they get the same inflation increase plus, while that increase is under $0.50, an extra 1% of their previous rate, with the combined raise capped at $0.50 a year.
| Rate | Applies to | Per hour |
|---|---|---|
| Large employers (51 or more employees) | Employers with 51 or more employees | $18.00134 |
| Mid-sized employers (11 to 50), nonprofits and Medicaid home care | Employers with 11 to 50 employees, and any 501(c)(3) nonprofit or Medicaid-funded home care provider with 11 or more employees | $16.50134 |
| Small employers (10 or fewer employees) | Employers with 10 or fewer employees | $15.95134 |
| Workers under 20, first six months on the job | An employer may pay 85% of its tier rate to a worker under 20 years old during the first six months of employment. | See rule3 |
| Overtime for large employers from July 1, 2026 | Overtime is 1.5 times the tier rate. The state poster lists $27.00 for large employers, $24.75 for mid-sized employers and $23.93 for small employers from July 1, 2026. | $27.004 |
Compared with Maryland
When a local minimum wage, the state minimum wage and the federal minimum wage differ, the employer must pay the highest one that applies to the work. For most covered work in Montgomery County, that is the local rate.
| Minimum wage | Next change | Per hour now |
|---|---|---|
| Montgomery County | Due July 1, 2027, amount not announced | $18.00 |
| Maryland (state) | None scheduled | $15.00 |
| Federal | None scheduled | $7.25 |
Tipped employees
| Tip credit | Allowed |
|---|---|
| Minimum cash wage | $4.00 an hour134 |
| Maximum tip credit | $14.00 an hour |
Workers who get more than $30 a month in tips may be paid $4.00 an hour in cash in 2026, as long as cash wage plus tips reaches their employer's tier rate. Restaurants using the tip credit must give a tip credit wage statement each pay period, and employers of tipped workers must file a quarterly wage report with the county Office of Human Rights within 30 days after each quarter.
An employer that takes a tip credit must make up the difference whenever wages plus tips fall short of the full minimum wage for the workweek. See the tipped minimum wage guide.
How the rate changes
Every July 1 the large-employer rate rises by the previous calendar year's average increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Washington area, rounded to the nearest 5 cents. The mid-sized and small rates get the same increase and, when that increase is under $0.50, an extra 1% of their previous rate, with the combined raise then capped at $0.50, until they equal the large-employer rate.
Rate history
Who is covered
Covers work performed in Montgomery County, Maryland. The county rate does not apply to workers exempt from the state or federal minimum wage law, or to workers under 19 who work no more than 20 hours a week.
- Enacted Bill 28-17, passed in 2017, set the path to $15.00 and the later inflation indexing; large employers reached $15.00 on July 1, 2021.
- Maryland's statewide minimum has been $15.00 since January 1, 2024; every county tier is higher, and in 2026 the county's $4.00 tipped cash wage is above the state's $3.63.
- The Maryland Department of Labor publishes a Montgomery County poster that employers must physically display.
- Questions about the county wage go to the Office of Human Rights in Rockville (240-777-8450); state wage claims go to the Maryland Department of Labor (410-767-2357).
Other local rates in Maryland
- Howard County$16.00
- Prince George's County$15.30
Everywhere else in Maryland, the state rate applies.
Get help or file a claim
If you are paid less than the minimum wage that applies to your job, you can file a wage claim with the agency below. Federal law prohibits firing or otherwise retaliating against a worker for complaining about federal minimum wage rights.
| Agency | Montgomery County Office of Human Rights |
|---|---|
| Phone | 240-777-8450 |
| The law | Montgomery County Code Chapter 27 (Human Rights and Civil Liberties), Sections 27-67 to 27-70, incl. 27-68 (minimum wage) and 27-69 (tipped employees, reporting); Enacted Bill 28-17 (2017; schedule to $15 and CPI-W indexing with tiered phase-in) |
| Federal | U.S. Department of Labor, Wage and Hour Division, 1-866-487-9243 |
Sources
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Is a rate wrong or out of date? Report an error