countyPop. 1,060,000

Montgomery County, MD Payroll Rules

Local payroll and employment requirements that differ from or exceed Maryland state law

Last updated: January 2025

Minimum Wage
$17.15
Paid Sick Leave
1 hour per 30 hours worked
Max: 56 hours (small) / 80 hours (large)

Minimum Wage

Current Rate$17.15/hour

Montgomery County has its own minimum wage: $17.15 for large employers (51+ employees), $15.00 for small employers, phasing up.

Scheduled Increases

July 2025$17.65/hour

Paid Sick Leave

Accrual Rate
1 hour per 30 hours worked
Maximum Accrual
56 hours (small) / 80 hours (large)
Maximum Annual Use
80 hours

Maryland Healthy Working Families Act applies. Montgomery County follows state law.

Local Taxes

Montgomery County Income Tax3.20%

Local income tax on all taxable income for Montgomery County residents. Maximum rate allowed under Maryland law.

Additional Local Requirements

WithholdingEffective: Ongoing

Residence-Based

Employers withhold county tax based on employee residence. Use Form MW507 to determine correct county.

FilingEffective: Ongoing

Combined with State

County income tax is withheld and filed together with Maryland state income tax. No separate county filing.

Minimum WageEffective: 2024

County-Specific Rate

Montgomery County has its own minimum wage law higher than state. Employers must pay county rate for work in the county.

Official Resources

Important Note

These local rules apply in addition to Maryland state law. Employers must comply with whichever law provides greater protection to employees. Always verify current requirements with official sources.