All states · Updated for 2026

How to pay a nanny in Maryland

Everything a Maryland family has to do to pay a nanny, housekeeper or caregiver legally: the taxes, the registrations, the forms, and the deadlines. CareTab does the math and reminds you; you keep paying them the way you already do.

The short version

Federal: withhold 7.65% Social Security and Medicare from their pay and match it; pay FUTA (0.6% of the first $7,000.00); file Schedule H with your 1040; give them a W-2 by Jan 31.
Maryland unemployment tax: register with Maryland Department of Labor, Division of Unemployment Insurance after domestic employer is liable when total payroll to domestic workers is $1,000 or more in any calendar quarter of the current or preceding calendar year; new employers pay 2.60% on the first $8,500.00 of wages; file Quarterly contribution and employment report (BEACON) quarterly.
Maryland income tax: withholding is voluntary for household employers (form MW507).
State programs: MD Family and Medical Leave Insurance (FAMLI) (0.00% employee).
New hire report: within 20 days of their start date.
Minimum wage: $15.00/hour. Overtime: 1.5× over 40 h/week for live-out nannies.
Paid sick leave: required (Maryland Healthy Working Families Act: 1 hour per 30 hours worked, up to 40 hours accrued per year (64-hour balance maximum). Employers with 15+ employees must provide paid leave; employers with fewer than 15 (most households) must provide the same leave unpaid. Employees regularly working fewer than 12 hours a week are exempt.).
Workers' compensation: Required for a domestic worker who earns $1,000 or more in cash in a calendar quarter from the household (LE § 9-209); below that, employer and worker may jointly elect coverage. Policies available from private carriers or Chesapeake Employers' Insurance.

Step by step

Get an EIN from the IRS (free, online, 10 minutes).
Have your nanny complete Form I-9 and, if they want federal income tax withheld, a W-4 and MW507.
File the Maryland new-hire report within 20 days at the state site.
Register with Maryland Department of Labor, Division of Unemployment Insurance once you cross domestic employer is liable when total payroll to domestic workers is $1,000 or more in any calendar quarter of the current or preceding calendar year (registration).
Each payday: track hours, pay at least minimum wage and overtime, withhold 7.65% plus state program premiums, give a pay stub.
Each quarter: file Quarterly contribution and employment report (BEACON). Reports and payments due within 1 month after each calendar quarter (Apr 30, Jul 31, Oct 31, Jan 31) via BEACON. 2026 uses Table A (0.30%–7.50%); wage base $8,500 (official). The Department's page gives the new-employer rate as a range of 1.0%–2.6%; 2.6% is the standard new-employer rate reported for 2026 — replace with your BEACON rate notice.
January: W-2 to your nanny, W-2/W-3 to the SSA, MW508 (with W-2s) to the state. April: Schedule H with your 1040.

Run your numbers

Use the free Maryland nanny tax calculator: take-home pay, what you withhold, and your total cost including employer taxes.

Frequently asked

Do I have to pay nanny taxes in Maryland?

Yes. Once you pay a household employee $3,000.00 or more in a year you owe Social Security and Medicare (7.65% withheld from your nanny and 7.65% from you), and FUTA once you pay $1,000.00 in any quarter. Maryland unemployment tax applies after domestic employer is liable when total payroll to domestic workers is $1,000 or more in any calendar quarter of the current or preceding calendar year.

Do I withhold Maryland income tax from my nanny?

Maryland does not require household employers to withhold state income tax; you can withhold voluntarily using MW507 if your nanny asks.

What forms do I file in Maryland?

Quarterly contribution and employment report (BEACON) quarterly with Maryland Department of Labor, Division of Unemployment Insurance, MW508 (with W-2s) annually, a W-2 for your nanny and W-3 to the SSA by Jan 31, and Schedule H with your federal return.

Does my nanny get overtime in Maryland?

Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are also owed overtime in Maryland. Maryland Wage and Hour Law (LE § 3-415 / § 3-403) lists no exemption for domestic or live-in workers, so 1.5× after 40 hours applies to live-in household employees too. State minimum wage $15.00 (unchanged for 2026; Montgomery and Howard counties set higher local minimums).

What is the minimum wage for a nanny in Maryland?

$15.00 per hour in 2026.

Pay your Maryland nanny legally for $14.99/month

Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with Quarterly contribution and employment report (BEACON) pre-filled. 14-day free trial, no card needed.

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Sources: Comptroller of Maryland — 2026 Maryland Employer Withholding Guide (percentage method, exemption/standard deduction values, filing categories, MW506/MW508); Comptroller of Maryland — Percentage method of withholding for 3.20% local income tax (2026, pm320); Comptroller of Maryland, Central Payroll Bureau — 2026 Maryland State and Local Income Tax Withholding Information (state rate schedule; Attachment 1: 2026 local withholding rates by county); Maryland Department of Labor — Unemployment insurance tax rates and quarterly reporting (2026 Table A, $8,500 wage base); Maryland Department of Labor — New employers: get started (domestic employer liability $1,000 payroll in a quarter; BEACON; FAMLI contributions begin Jan 1, 2027); Maryland Department of Labor — Maryland Healthy Working Families Act (earned sick and safe leave); Md. Code, Labor & Employment § 9-209 — domestic worker covered employee ($1,000 cash in a calendar quarter); Md. Code, Labor & Employment § 3-415 (overtime) and § 3-403 (exemptions) — no domestic or live-in exemption; Maryland State Directory of New Hires. Rules for 2026. General information, not tax or legal advice.