How Maryland compares
Ranked against the other 49 states on the figures we hold. Rates that combine state and local components — sales tax, the minimum wage where it varies by region — are shown on this page but not ranked, because a single number would misstate them.
| Figure | MD | Nationally | In its region |
|---|---|---|---|
| PopulationUS Census Bureau, Vintage 2025 estimates, July 1, 2025 | 6,265,347 | 19th highest of 50 | 5 of 11 |
| GDP ($bn)Bureau of Economic Analysis, 2025 | 568.1 | 18th highest of 50 | 5 of 11 |
| Median household incomeUS Census Bureau, ACS 2024 1-year, 2024 | $102,905 | 3rd highest of 50 | 3 of 11 |
| Unemployment rateBureau of Labor Statistics, LAUS (seasonally adjusted, preliminary), September 2026 | 3.9% | tied 26th lowest of 50 | 6 of 11 |
| Foreign-born shareUS Census Bureau, ACS 2024 1-year, 2024 | 17.1% | 9th highest of 50 | 4 of 11 |
| Property tax ratechecked Nov 2026; confirm with the Maryland legislature | 0.99% | 30th lowest of 50 | 2 of 11 |
| Deposit return window (days)checked Nov 2026; confirm with the Maryland legislature | 45 | tied 44th lowest of 50 | 11 of 11 |
| Eviction notice (days)checked Nov 2026; confirm with the Maryland legislature | 14 | tied 6th highest of 50 | 5 of 11 |
| Final pay deadline (days)checked Nov 2026; confirm with the Maryland legislature | 14 | tied 26th lowest of the 29 states that set one | 7 of 7 |
- State income tax: yes41 of 50 states answer the same way
- At-will employment: yesthe same in all 50 states — it does not set Maryland apart
- Paid sick leave required: yes20 of 50 states answer the same way
- Paid family leave: no38 of 50 states answer the same way
- Workers' comp required: yes49 of 50 states answer the same way
- Rent control permitted: no46 of 50 states answer the same way
- Annual report required: yes43 of 50 states answer the same way
Statistical figures: US Census Bureau, Vintage 2025 estimates (July 1, 2025) · US Census Bureau, ACS 2024 1-year (2024) · Bureau of Economic Analysis (2025) · Bureau of Labor Statistics, LAUS (seasonally adjusted, preliminary) (September 2026) · SBA Office of Advocacy, 2025 Small Business Profiles (2025). Tax, wage, business and tenancy figures are recorded from state sources and were last checked on 2026-11-05 — confirm anything you are about to act on with the Maryland legislature.
What's changing in Maryland
Enacted changes with a fixed effective date. Contracts, payroll and leases signed now may run past these dates.
Coming up
- January 1, 2027Paid family & medical leave (FAMLI) payroll contributions begin
Benefits are scheduled to start in January 2028.
Source ↗
Checked against official sources on 2026-11-05.
How long you have in Maryland
The periods that decide whether something is on time. Days are calendar days unless the underlying rule says otherwise.
- Return a security deposit within
- 45 days
- Eviction notice before filing
- 14 days
- Final paycheck within
- 14 days
- LLC formation processed in
- 4-6 weeks (expedite available)
- Annual report due
- April 15
- Overtime starts after
- 40 hrs/week
AI Legal Insights — Maryland
AI-generated · Updated July 2026
Maryland operates under an at-will employment doctrine, allowing for flexible termination practices unless otherwise specified by contract. The state also enforces robust labor protections, including the Maryland Healthy Working Families Act which mandates paid sick leave accrual.
With a robust GDP of $512 billion and a strong presence of approximately 600,000 small businesses, Maryland offers a dynamic economic environment. The state maintains a competitive tax structure, including a 6.0% sales tax and a tiered income tax ranging from 2% to 5.75%.
Maryland features a diverse demographic landscape with a foreign-born population of 15.8%. This international presence contributes significantly to the state's multifaceted workforce and cultural richness.
- ›Ensure all employment agreements clearly define terms to navigate the state's at-will employment status.
- ›Incorporate specific clauses regarding paid sick leave compliance to meet the requirements of the Maryland Healthy Working Families Act.
- ›Verify that all service contracts account for the 6.0% state sales tax where applicable.
AI-generated insights · Verify with a licensed attorney before relying on this information.
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Employment Laws
Maryland labor regulations
Maryland provides strong worker protections compared with most of the Mid-Atlantic region. The statewide minimum wage has been $15.00/hr since January 1, 2024, and some counties set higher local rates. The Healthy Working Families Act requires paid sick and safe leave at employers with 15+ employees. Maryland's paid family and medical leave program (FAMLI) was delayed: payroll contributions begin January 1, 2027, and benefits are scheduled to start in January 2028. Workers' compensation is mandatory for virtually all employers.
| Law | MD Rule | Federal Floor |
|---|---|---|
| Minimum Wage | $15.00/hr since January 1, 2024; Montgomery County and Howard County set higher local rates | $7.25/hr |
| Overtime | After 40 hrs/week at 1.5× rate | FLSA: after 40 hrs/week |
| Paid Sick Leave | Up to 40 hrs/year, accruing 1 hr per 30 hrs worked; employers with 15+ employees must pay it, smaller employers must provide it unpaid | None (federal) |
| Paid Family Leave | FAMLI program: payroll contributions begin January 1, 2027; benefits scheduled to begin January 2028 | FMLA: 12 weeks unpaid |
| Workers Comp | Mandatory for virtually all employers with any employees | Federal employees: yes |
| At-Will Employment | Yes; statutory and public policy exceptions | Default nationwide |
| Final Paycheck | All wages due on or before the day the employee would have been paid had employment continued | No federal requirement |
| Meal & Rest Breaks | No general meal or rest break requirement for adults; minors get a 30-min break after 5 consecutive hours | No federal requirement |
| Pay Transparency | Employers must include a good-faith wage range and benefits description in job postings | No federal requirement |
| Equal Pay | Equal Pay for Equal Work Act bars pay disparities based on sex or gender identity and protects employees who discuss wages | Equal Pay Act of 1963 |
- Maryland's Fair Employment Practices Act prohibits discrimination based on race, color, religion, sex, age, national origin, marital status, sexual orientation, gender identity, disability, and genetic information — broader than federal law.
- Under the Maryland Wage Payment and Collection Law, employees can sue for unpaid wages and recover up to 3× the unpaid amount plus attorney fees.
- Non-compete agreements are banned for employees earning 150% of the state minimum wage or less (about $46,800 a year at $15.00/hr); others must be reasonable in scope and duration.
- FAMLI contributions start January 1, 2027, and benefits are scheduled for January 2028; employers should set up payroll deductions before contributions begin.
- Montgomery County and Howard County have minimum wages above the state floor that change on their own schedules — check local rates for employees working there.
Sources: U.S. Department of Labor state minimum wage table · state labor agencies (checked Nov 2026)
Landlord-Tenant Laws
Maryland rental regulations
Maryland landlord-tenant law gives tenants more protection than many states. Security deposits are capped by statute and earn interest, and landlords must return them within 45 days of move-out with an itemized list of deductions. The 2024 Renters' Rights and Stabilization Act changed several rules, including deposit rules, so confirm current limits before collecting a deposit. There is no statewide rent control, but Takoma Park and Montgomery County have local rent stabilization. Baltimore City and several counties add local tenant protections.
| Topic | MD Rule |
|---|---|
| Security Deposit | Capped by state law (listed here as 2 months' rent; the 2024 Renters' Rights and Stabilization Act changed deposit rules — confirm the current cap); landlord must give a receipt |
| Deposit Interest | Deposits earn interest at a rate set by state law, paid or credited to the tenant when the deposit is returned |
| Deposit Return | Within 45 days after the tenancy ends, with an itemized written list of deductions; a landlord who withholds without a reasonable basis can owe up to 3× the amount withheld plus attorney fees |
| Rent Control | No statewide rent control; Takoma Park and Montgomery County have local rent stabilization laws |
| Eviction Notice (Non-Payment) | Written notice of intent to file must be given before a failure-to-pay-rent case is filed in District Court (this page lists 14 days) |
| Lease Termination | Month-to-month: at least 1 month's written notice by either party (longer in some counties); fixed-term leases end at the end of the term unless renewed |
| Habitability | Tenants may use rent escrow — paying rent into court — if the landlord fails to fix serious defects after written notice; courts may order repairs or reduce rent |
| Retaliation Protection | Landlords may not raise rent, cut services, or evict because a tenant reported code violations, joined a tenant organization, or used legal remedies |
| Late Fees | Capped at 5% of the monthly rent; must be stated in the lease |
Both landlords and tenants have enforceable rights under Maryland law. Document all communications and keep copies of your lease agreement. Use AI review to spot risky clauses before signing.
Starting a Business
Maryland LLC formation guide
Maryland's location next to Washington, D.C., and its highly educated workforce make it a magnet for federal contractors, biotech and life sciences firms, cybersecurity, and professional services. The economy is about $568 billion, and the median household income is about $102,905. Forming an LLC costs $100, and the annual report costs $300 a year, due April 15 — a notable ongoing cost. Employers should also plan for FAMLI paid leave contributions starting January 1, 2027.
Step-by-step LLC formation
- 1Choose a business name — must include "LLC", "L.L.C.", or "Limited Liability Company"; check availability at businessexpress.maryland.gov
- 2File Articles of Organization with the Maryland State Department of Assessments and Taxation (SDAT) online through Maryland Business Express
- 3Pay the $100 LLC formation fee; standard processing can take 4–6 weeks, and expedited processing is available for an additional fee
- 4Designate a resident agent — must have a physical Maryland street address (no P.O. boxes); may be an individual or registered agent service
- 5Get an EIN from the IRS — free at irs.gov; required for banking, hiring, and Maryland tax registration
- 6Register with the Maryland Comptroller for applicable taxes (sales and use tax, withholding) at marylandtaxes.gov
- 7File the Annual Report with SDAT each year by April 15 — $300 fee; failure to file results in forfeiture of the LLC's right to do business
- 8Prepare for FAMLI paid family and medical leave contributions, which begin January 1, 2027, if you have employees
- 9Open a business bank account using your EIN and filed formation documents
- 10Obtain any required local business licenses from your county or Baltimore City — requirements vary by jurisdiction and industry
Every LLC also needs a free EIN from the IRS (Form SS-4). Apply online at irs.gov — takes about 15 minutes and is required to open a business bank account.
Popular IRS Forms
Most-filed federal forms for Maryland taxpayers
Fill these out online with plain-English guidance — every field explained, no accountant required. Download as a ready-to-file PDF when done.
The main annual federal income tax return every taxpayer files.
Fill out free →Give your SSN or EIN to a client before getting paid as a contractor.
Fill out free →Report $600+ paid to independent contractors during the year.
Fill out free →Tell your employer how much federal tax to withhold from pay.
Fill out free →Report income and expenses from a sole proprietorship or LLC.
Fill out free →Report payroll taxes withheld from employees each quarter.
Fill out free →Get an automatic 6-month extension to file your 1040.
Fill out free →The year-end wage statement employers issue to each employee.
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Federal Offices
United States government offices in Maryland
Walk-in assistance by appointment only. Call (844) 545-5640 to schedule, or book online at irs.gov.
Immigration appointments via my.uscis.gov or call (800) 375-5283.
Free Legal Aid
Maryland legal assistance organizations
These organizations provide free or reduced-cost civil legal services to qualifying Maryland residents.
Statewide civil legal aid for low-income Marylanders
Civil rights and legal advocacy for low-income Marylanders in Baltimore
Legal services and advocacy for immigrants and low-income Latino communities in Maryland
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