How do I register as a household employer in Maryland?

Start with a federal EIN, then register with Maryland for each account that applies to you. Apply for a federal EIN at IRS.gov. It is free and takes about 15 minutes. Register with Maryland's unemployment insurance agency once you cross $1,000 in any calendar quarter. Most states want this within 20 days of becoming a covered employer. If you will withhold Maryland income tax at your nanny's request, register separately with the state revenue department for a withholding account. You may also need a local income tax registration, depending on your nanny's work or home municipality. Every Maryland county adds its own surtax on top of the state income tax.

What payroll taxes does Maryland charge for a household employee?

Federal FICA and FUTA, Maryland SUTA, and anything else below that applies to you. Federal FICA: 7.65% employer share, matched by your nanny. Federal FUTA: 6.0% on the first $7,000, an effective 0.6% after the state SUTA credit. Maryland SUTA: 0.3% - 10.9% on a state-specific wage base, with a separate rate for new employers. State income tax withholding is optional unless your nanny elects it on the state W-4. Local income tax may also apply. Every Maryland county adds its own surtax on top of the state income tax.

What are Maryland's minimum wage and overtime rules for nannies?

At least $15.00 an hour for a nanny in Maryland. That is Maryland's own minimum wage, above the federal $7.25 floor. Some cities and counties may set a higher floor, so check your locality before you set a rate. Overtime is 1.5x pay for hours over 40 in a week, under the FLSA. Live-in nannies are exempt from FLSA overtime, but not from minimum wage. Source: US DOL, State Minimum Wage Laws.

Can I require my nanny to use direct deposit in Maryland?

Yes. Maryland allows direct deposit for household employees. Federal Regulation E still applies: your nanny must be free to choose their own bank, or you offer another payment method. Get a written, signed authorization before the first deposit, even though Maryland does not strictly require one.

What records do I need to keep for a Maryland household employee?

Keep them for at least 4 years after the return reporting the tax was due, or the tax was paid, whichever is later. Timesheets, pay stubs, W-2 copies, payment confirmations and SUTA filings. Maryland follows the federal baseline, so 4 years covers both. Most household-employer audits open with the IRS or a state agency asking for exactly these records, so keep them with your tax filings. Source: IRS Publication 926.

All State Guides

Maryland Nanny Tax Guide

Maryland requires both state and county income tax withholding, because all counties impose income taxes. Its paid family leave program starts collecting contributions on January 1, 2027.

Maryland household employer quick facts

Applies in Maryland

State income tax withholding
State unemployment

Not in Maryland

Disability insurance
Paid family leave

Minimum Wage

$15.00/hour

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SUTA Rate Range

0.3% - 10.9%

New employers: 2.6% on the first $8,500 (2026). Maryland Department of Labor

Key things to know

Progressive state income tax (2% - 6.5%)
All counties have income taxes (avg 3.2%)
Paid family leave contributions start January 1, 2027
State minimum wage is $15.00/hour

Maryland Employer Requirements

State Income Tax

Maryland uses progressive tax brackets ranging from 2% to 6.5% on income over $1M. Most household employee income falls in the 4.75% to 5% brackets.

County Income Tax

All Maryland counties impose income tax, typically around 3.2% (varies by county). You must withhold county tax based on where your employee lives.

Paid Family Leave

Maryland's FAMLI program starts collecting contributions on January 1, 2027. Nothing is withheld from 2026 pay.

State Unemployment Insurance

Employers pay SUI tax on the first $8,500 of wages. New employer rate is 2.6%, with rates ranging from 0.3% to 10.9% based on experience.

Maryland household employer questions

What will it cost?

Wondering what you'll actually owe as a Maryland employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

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

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Maryland Nanny Tax Guide

Maryland household employer quick facts

Maryland Employer Requirements

State Income Tax

County Income Tax

Paid Family Leave

State Unemployment Insurance

Maryland household employer questions

What will it cost?

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