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MD

Maryland Nanny Tax Calculator

Estimate your total employer costs for hiring a nanny in Maryland. Enter your nanny's pay below for a personalized tax breakdown.

Maryland employer tax rates at a glance

Social Security

6.2%

employer share

Medicare

1.45%

employer share

FUTA

0.6%

on first $7,000

MD SUTA

0.3% - 10.9%

new employer rate range

Key facts for Maryland household employers

  • Minimum wage: $15.00/hour (compare nationwide)
  • State income tax withholding required
  • Paid family leave program in effect
  • Progressive state income tax (2% - 6.5%)
  • All counties have income taxes (avg 3.2%)

Maryland nanny tax FAQ

How does the calculator estimate Maryland nanny taxes?

The calculator estimates the full employer cost for a household employee in Maryland: federal FICA (15.3% combined, split between you and your employee), federal FUTA (0.6% effective on the first $7,000), and Maryland SUTA (0.3% - 10.9%). It also factors in Maryland state income tax (when withheld), Maryland paid family leave premium, local income tax (Maryland has significant local layers). Numbers update for tax year 2026 and reflect the 2026 FICA threshold of $3,000.

Does Maryland require state income tax withholding from a nanny's paycheck?

Maryland has a state income tax. Withholding from household employees is typically optional unless your nanny elects it on the state's W-4 equivalent. If they do elect withholding, you will owe quarterly remittance to the state and an annual reconciliation return that includes copies of the W-2 you issued.

What's the minimum hourly rate I can pay a nanny in Maryland?

Maryland's minimum wage is $15.00/hour, above the federal $7.25 floor. Household employees must be paid at least this rate. FLSA overtime (1.5x for hours over 40 in a week) applies to most household employees. Live-in nannies are FLSA-exempt from overtime but not from minimum wage.

Does Maryland add disability or paid family leave premiums?

Yes for paid family leave. Maryland Family and Medical Leave Insurance (FAMLI) covers household employees. Funding rules vary — some states are employee-funded, some split employer and employee. You register and remit separately from unemployment insurance.

Why does my Maryland nanny's net pay differ from the calculator total?

In Maryland, the gross-to-net difference comes from federal FICA (6.2% Social Security + 1.45% Medicare = 7.65% withheld from the employee), any federal income tax your nanny chose to have withheld, plus Maryland state income tax if elected on the state W-4, plus the employee-side share of Maryland Family and Medical Leave Insurance (FAMLI). Your share — the employer FICA match and FUTA + SUTA — sits on top of the gross, not subtracted from it. The calculator separates "employer cost" (your total outlay) from "employee net pay" (what lands in their bank account).

This calculator provides estimates for informational purposes only. Actual tax obligations may vary. Always verify current rates with your state's tax agency or consult a qualified tax professional.

Verified accurate as of April 2026Sources: Maryland tax agency, IRS Publication 926

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