True Cost of a Nanny in Maryland (2026)

Calculate true nanny costs in Maryland. County min wages (MoCo, Howard, PG), live-in OT required, state + local piggyback tax, FAMLI 0.45%, SUI 2.60% on $8,500, workers comp if $1k/quarter.

The Basics

The Schedule

Enter hours for each day worked. This will override Total Hours and Days per Week above for more precise overtime calculations.

Deductions & Options

Total Monthly Cost:$0.00

Frequently Asked Questions

What is the overtime rule for nannies in Maryland?

In Maryland, nannies must be paid 1.5x their regular hourly rate for hours over 40 in a workweek. Both live-in and non–live-in nannies are entitled to overtime; Maryland does not follow the federal live-in exemption. There is no daily overtime—only weekly.

What is the minimum wage for a nanny in Maryland?

As of January 1, 2026, the Maryland state minimum wage is $15.0/hour for the remainder of the state. Montgomery County (small employer), Howard County (small employer), and Prince George's County have higher local minimum wages. You must pay the rate that applies to the worksite. Use the county selector in the calculator to apply the correct minimum.

How does state and local income tax work for a nanny in Maryland?

Maryland uses a "piggyback" system: state graduated income tax (rates from 2% to 5.75%) plus local county tax. For 2026, the standard deduction for single filers is $3350. Local rates vary by county (typically 2.25%–3.20%); the calculator uses a 3.2% default for a conservative estimate. You withhold both state and local tax from your nanny's pay.

Do I have to withhold FAMLI for my nanny in Maryland?

Yes. Maryland's Family and Medical Leave Insurance (FAMLI) program requires you to withhold the employee share from your nanny's wages. For small employers (fewer than 15 employees), the employee pays 0.45% of wages. You (the employer) pay 0%. You must still deduct and remit the employee's share. Small employers (<15) exempt from employer share. Employee pays 0.45%.

When do I owe Maryland unemployment (SUI) for my nanny?

You become liable for Maryland unemployment insurance when you pay your household employee more than the state quarterly threshold in a calendar quarter. New employers typically pay 2.6% on the first $8500 of wages per employee per year. You pay this as the employer; it is not deducted from the nanny's paycheck.

Do I need workers' compensation for a nanny in Maryland?

Mandatory if wages >= $1,000 per calendar quarter.Mandatory if wages >= $1,000 per calendar quarter. Strictly enforced for household employers meeting the threshold. The $1,000-per-quarter threshold is lower than in many states, so almost all regular nanny arrangements require coverage. Check with your homeowner's insurance or a workers' comp carrier.

What are the sick leave rules for nannies in Maryland?

Statewide, Maryland requires sick leave for most employees but for employers with fewer than 15 employees it is generally unpaid (accrual 1 hour per 30 hours worked, cap 40 hours). In Montgomery County, paid sick leave applies (e.g. 1 hour per 30 worked, cap 32 hours for small employers). Check MoCo rules if your nanny works in Montgomery County.

Does Maryland require pay stubs for household employees?

Yes. Maryland law requires employers to provide a written pay statement with each payment showing gross pay, deductions, and hours worked.

Is My Nanny an Independent Contractor? (1099 vs W-2)

In Maryland, a nanny is almost always a W-2 employee. You set the schedule, provide the workplace, and direct the childcare. The IRS and state treat household childcare workers as employees. Classifying a nanny as a 1099 contractor can lead to back taxes, penalties, and liability for unpaid employment taxes.

Are My Nanny Expenses Tax Deductible in Maryland?

You may be able to claim the federal Child and Dependent Care Credit (CDCC) for qualifying childcare expenses, including nanny wages. The credit can be up to 35% of qualifying expenses, subject to limits. You generally need the nanny's name, address, and SSN (or TIN) on your return. Maryland state and local tax rules apply to your own return; the nanny's wages are deductible as childcare expenses where allowed.

How Do I Keep Track of My Nanny's Hours Worked?

Use a time-tracking app or a spreadsheet to record hours. For Maryland, accurate records support correct overtime (over 40 hours/week for all nannies, including live-in) and compliance with pay stub requirements. We offer a Total Nanny Pay & Time Tracker Solution that can produce compliant pay stubs.

How to Calculate Maryland Nanny Overtime

Maryland has no daily overtime—only weekly. Both live-in and non–live-in nannies get overtime after 40 hours in a week. Maryland does not follow the federal live-in overtime exemption.

  • Formula: Overtime pay = (Total Weekly Hours − 40) × (1.5 × Hourly Rate)
  • Apply the same rule for live-in and non–live-in workers.

The 2026 Maryland Nanny Tax Guide

Hiring a nanny in Maryland means navigating county-specific minimum wages, state and local "piggyback" income taxes, the FAMLI program, and workers' compensation rules that apply to most household employers. Montgomery County and Howard County (small employers) and Prince George's County have minimum wages above the state rate of $15.0 per hour (effective January 1, 2026). Unlike federal law, Maryland does not exempt live-in nannies from overtime: you must pay time-and-a-half for hours over 40 in a workweek. You must withhold state income tax (graduated 2%–5.75%), local county tax (default 3.2% in the calculator), and the employee share of FAMLI (0.45%). Workers' compensation is mandatory if you pay $1,000 or more per calendar quarter—a low threshold that covers almost all regular nanny arrangements. This guide and the Maryland Nanny Pay Calculator above use only verified data so you can budget accurately and stay compliant.

Wage and Hour Laws: County Minimum Wage Map and Live-In Overtime

Maryland minimum wage depends on where the work is performed. As of January 1, 2026:

  • Montgomery County (10 or fewer employees): $15.50 per hour
  • Howard County (<15 employees): $15.50 per hour
  • Prince George's County: $15.30 per hour
  • Remainder of State: $15.00 per hour

You must pay at least the rate that applies to the worksite. For overtime, Maryland follows a weekly rule only: 1.5 times the regular rate for hours over 40 in a workweek. Live-in nannies must be paid overtime in Maryland; the state does not follow the federal live-in exemption. Use the calculator's county selector to apply the correct minimum wage and enter your schedule.

Taxes: State + Local "Piggyback" and FAMLI

Maryland uses a "piggyback" income tax system: state tax plus local county tax. State tax is graduated, with rates from 2% to 5.75%. For 2026, the standard deduction for single filers is $3350. Local county rates typically range from 2.25% to 3.20%; the calculator uses 3.2% as a conservative default. You withhold both state and local tax from your nanny's pay.

FAMLI (Family and Medical Leave Insurance): You must withhold the employee share at 0.45% of wages. Small employers (fewer than 15 employees) do not pay the employer share. Small employers (<15) exempt from employer share. Employee pays 0.45%.

Unemployment (SUI): You become liable when you pay your household employee more than the state quarterly threshold. New employers typically pay 2.6% on the first $8500 of wages per employee per year. You pay this as the employer; it is not deducted from the nanny's paycheck.

Workers' Compensation: $1,000/Quarter Threshold

In Maryland, workers' compensation is Strictly enforced for household employers meeting the threshold. The $1,000-per-quarter threshold is lower than in many states, so almost all regular nanny arrangements require coverage. Check with your homeowner's insurance or a workers' comp carrier that offers household-employee coverage.

Sick Leave: State vs Montgomery County

Statewide, Maryland requires sick leave for most employees. For employers with fewer than 15 employees, it is generally unpaid: In Montgomery County, paid sick leave applies (e.g. , cap 32 hours for small employers). If your nanny works in MoCo, follow county rules.

Pay Stubs: Maryland Law

Maryland law requires employers to provide a written pay statement with each payment showing gross pay, deductions, and hours worked. Providing pay stubs that show gross pay, hours worked, and all deductions (federal tax, state tax, local tax, FICA, FAMLI) helps you stay compliant.

The "Nanny Tax" Checklist for Maryland Employers

  • Obtain a Federal EIN (FEIN) from the IRS and register with the Maryland Department of Labor for unemployment and FAMLI if required.
  • Have your nanny complete Form I-9 and Form W-4.
  • Withhold state income tax (graduated), local county tax (3.2% default), and FAMLI (employee 0.45%).
  • Obtain workers' compensation coverage if you pay $1,000 or more per calendar quarter.
  • Provide a written pay statement with each payment (gross pay, deductions, hours) per Maryland law.
  • File Schedule H with your federal 1040 tax return.

Nanny vs. Au Pair in Maryland

In the US, a nanny is a household employee: you pay at least the applicable minimum wage (by county in Maryland), apply overtime rules (weekly over 40 hours for all, including live-in), and withhold and pay FICA, FUTA, state and local income tax, FAMLI, and state unemployment. You file a W-2 and Schedule H. An au pair participates in the J-1 Au Pair program and receives a stipend plus room and board. The calculator supports both W-2 household employees and J-1 Au Pair arrangements.

How to Use the Maryland Nanny Pay Calculator

Use the calculator above to estimate your total cost and your nanny's take-home pay. Select your county (Montgomery, Howard, Prince George's, or Remainder of State) so the correct minimum wage applies. Enter an hourly rate at or above that minimum. Choose whether the nanny is live-in or not; overtime after 40 hours/week applies to both. The calculator applies state income tax (graduated, standard deduction $3350), local tax at 3.2%, FAMLI at 0.45%, and SUI at 2.6% on the first $8500, so you see true cost vs. take-home pay.

Data Sources and Last Modified

Rates and rules in this guide and in the calculator are drawn from the Maryland Department of Labor, Comptroller of Maryland, and IRS publications for 2026. Data last updated: 2026-02-01. Laws and rates may change; confirm with the state or a qualified tax or employment professional for your situation.

This guide is for informational purposes and does not constitute legal or tax advice. Maryland labor and tax laws are subject to change. Consult with a qualified employment attorney or tax professional for your specific situation.