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Reference · State of Maryland

Maryland trade labor costs

What a plumbing, HVAC or electrical tech earns in Maryland, what the state adds to payroll, whether labor is taxed, what a license costs, how lien rights work and when the heating and cooling seasons peak — each figure from the agency that sets it, with the date we read it.

  • Wages BLS OEWS May 2025
  • Payroll and licenses state agencies
  • Checked and
Plumbing median
$31.44/h+2.5% vs the U.S.21st of 51
HVAC median
$33.67/h+14.8% vs the U.S.13th of 51
Electrical median
$35.33/h+16.3% vs the U.S.20th of 51
New-employer SUTA
Checkon the first $8,500
Payroll programs
1 programFAMLI, from January 1, 2027
Sales tax on labor
Not taxedrepair and installation on buildings

Pay in Maryland

Hourly pay across all industries, May 2025. Half of the workers in each trade earn less than the median and half earn more; one in ten earns less than the 10th percentile. Union and non-union, no self-employed.

Hourly pay, 10th to 90th percentileDrawn to scale: one dollar axis for all three trades

  • PlumbingU.S. median $30.67

    plumbers: 10th percentile $21.94, 25th $26.34, median $31.44, 75th $45.62, 90th $52.13 an hour; U.S. median $30.67.

  • HVACU.S. median $29.33

    HVAC techs: 10th percentile $22.20, 25th $27.06, median $33.67, 75th $46.05, 90th $51.32 an hour; U.S. median $29.33.

  • ElectricalU.S. median $30.38

    electricians: 10th percentile $22.33, 25th $27.73, median $35.33, 75th $46.16, 90th $56.91 an hour; U.S. median $30.38.

  • 25th–75th percentile
  • State median
  • U.S. median
Hourly pay by percentile for plumbers, HVAC techs and electricians in Maryland, BLS OEWS May 2025
PercentilePlumbingHVACElectrical
10th$21.94$22.20$22.33
25th$26.34$27.06$27.73
Median$31.44$33.67$35.33
75th$45.62$46.05$46.16
90th$52.13$51.32$56.91
Mean$35.34$35.49$36.28
U.S. median$30.67$29.33$30.38
vs U.S.+2.5%+14.8%+16.3%
Rank21st13th20th
Jobs11,4208,56013,690

Dollars an hour. BLS occupations: Plumbers, pipefitters and steamfitters (SOC 47-2152); Heating, air conditioning and refrigeration mechanics and installers (SOC 49-9021); Electricians (SOC 47-2111). “vs U.S.” compares the medians; rank 1 is the highest median of the 50 states and DC. Released May 15, 2026; the next survey is due each spring.

Payroll costs the state adds

What Maryland charges an employer on top of wages: unemployment tax, and any paid-leave or disability program funded through payroll, and who must carry workers’ comp. Federal Social Security, Medicare and unemployment tax apply in every state and are already in the calculator. Workers’ comp premiums depend on the class code and the insurer, so the card gives the rules, not a rate.

State unemployment tax (SUTA)

Maryland Department of Labor, Division of Unemployment Insurance

Wage base
$8,500 per employee a year
New-employer rate
Check with the stateNot confirmed on the state’s own pages on October 28, 2026. The U.S. Labor Department’s July 2026 summary lists 2.60%, and the calculator uses it.
Construction
No separate rate published

Maryland Labor (Table A, 2026): new-employer rates “may range from 1.0% to 2.6%”. Out-of-state (foreign) construction contractors pay the Maryland construction-industry average, but not less than the new-employer rate.

Per tech, a year 2.60% × $8,500 = $221At the new-employer rate, for a plumber paid the state median ($31.44 × 2,080 h = $65,395). The calculator uses the rate alone.

State pages read

Workers’ compensation

Maryland Workers' Compensation Commission

Who must carry it
Any employeeAnyone working for an employer under a contract of hire or apprenticeship is presumed to be a covered employee, and each employer must secure compensation for all covered employees (Md. Code, Lab. & Empl. §§ 9-202, 9-402). The employer must prove an independent contractor or a specific exemption to overcome the presumption. mgaleg.maryland.gov
Where to buy it
Private insurers or the state fundChesapeake Employers' Insurance CompanyEmployers insure with an authorized insurer, join a private self-insurance group, or self-insure individually (Lab. & Empl. § 9-402). One authorized insurer is Chesapeake Employers’ Insurance Company, the former state fund (the State’s insurer of last resort since 1914), converted by statute into a private nonprofit insurer that competes with other carriers (Ins. §§ 24-302, 24-303). mgaleg.maryland.gov
Owners
Paid corporate officers and LLC members are covered employees, but may elect exemption: officers of close corporations, up to five officers of other corporations, and LLC members owning at least 20%, by written notice to the Commission and the insurer (Lab. & Empl. § 9-206). A sole proprietor is not covered but may elect coverage, if full-time in the business, by written notice to the Commission and the insurer (§ 9-227). mgaleg.maryland.gov
Construction
A principal contractor that subcontracts part of its own work is liable to the subcontractor’s employees for any compensation it would owe if it employed them directly (Lab. & Empl. § 9-508). mgaleg.maryland.gov

Statute and agency pages read

Maryland Family and Medical Leave Insurance (FAMLI)

Contributions start January 1, 2027 Maryland Department of Labor - FAMLI Division

Total rate
0.90%of wages for wages paid Jan 1 - Dec 31, 2027 (first contribution year)
Employer pays
0.45% (50%) for employers with 15+ employees
Small employers
Fewer than 15 total employees (MD + out-of-state): remit only 50% of the rate (0.45%), which may be withheld from employees
Wage cap
The Social Security wage base
Employees
Employer may withhold up to 50% of the rate; may choose to pay the full amount

Employer’s own cost, share of wages 5 employees: None20 employees: 0.45%In a 20-person shop that is about $294 a year for a plumber paid the state median. Add it to Benefits in the calculator.

Next: Contributions start with wages paid January 2027; first remittance due April 30, 2027; benefits from January 1, 2028

Approved private plan (commercial or self-insured) instead of the State Plan.

New-employer rates usually last one to three years — longer in some states (four years in Indiana, four to five in D.C.); then the state assigns your own rate, and your rate notice wins over any figure here. The calculator below uses the new-employer rate where one is clear. Where a state’s own pages could not be read, the card says so and gives the U.S. Labor Department’s figure.

What a shop in Maryland needs to charge

The calculator’s example shop — three techs, $120,000 of overhead, a truck each, 10% net profit — with Maryland’s median wage for each trade and its unemployment tax filled in. Your own numbers will differ; change them in the calculator below.

Example shopBreak-evenRate, 10% profit
Plumbingwage $31.44$114.32$127.02→ $130
HVACwage $33.67$119.10$132.34→ $135
Electricalwage $35.33$122.67$136.29→ $140

Per billable hour; → is the rate rounded up, as the calculator rounds it. Everything except the wage and the unemployment tax is the national example (BLS, IRS and DOL figures listed on the labor rate calculator).

Change the numbers for your shop

The labor rate calculator, opened on Maryland: pick your trade, put in your own crew, pay and overhead, and the rate and break-even redraw as you type.

Your labor rate

Who does the billable work?

Example shop in Maryland: 3 techs at the state’s median plumber wage, $120,000 overhead. Change any number or pick another state.

Charge at least Example shop · Maryland

Charge at least $127.02 per billable hour; break-even $114.32.

Round up to $130 (+$2.98)

See it drawn to scale
Rate build-upDrawn to scale: every dollar the same height
Rate build-up for the example, drawn to scaleColumn from $0 to $127.02 per billable hour, drawn to scale: wage $53.74, taxes & benefits $13.96, overhead $32.87, truck $13.74, profit 10% $12.70. Break-even line at $114.32. Rounded up to $130.12345$0Labor$67.70Break-even$114.32Your rate$127.02Round up to$130
  1. Wage$65,395.20 ÷ 1,216.8 h$53.74
  2. Taxes & benefits25.97% of pay$13.96
  3. Overhead$120,000 ÷ 3,650.4 h$32.87
  4. Truck$16,719.14 ÷ 1,216.8 h$13.74
  5. Profit 10%of the price$12.70
Break-even
$114.32
Profit per hour
$12.70
Revenue a year
$463,663

$114.32 ÷ (1 − 10%) = $127.02rounded up to $130

Already showing the example.

Price your tasks at $130 an hourOpens the price book builder with this rate.

Billable hours
1,216.8per tech a year
Loaded wage
$39.61per paid hour
Labor
$67.70per billable hour
Overhead
$32.87per billable hour
Truck
$13.74per billable hour
Labor burden
25.97%over gross pay

What moves your rate

  • Every billable hour sold under $114.32 loses money.
  • At 70% billable instead of 65%, break-even drops to $106.15, $8.17 an hour less.
  • Cut $10,000 of overhead a year and break-even drops $2.74 an hour, to $111.58.
Show the math
  1. Worked hours2,080 h − 26 days × 8 h = 1,872 h
  2. Billable hours per tech1,872 h × 65% = 1,216.8 h
  3. Gross pay per tech$31.44 × 2,080 h = $65,395.20
  4. Employer taxes and comp$4,054.50 SS + $948.23 Medicare + $42.00 FUTA + $221.00 SUTA + $1,746.05 comp = $7,011.78
  5. Benefits$65,395.20 × 15.25% = $9,972.77
  6. Labor per billable hour$82,379.75 ÷ 1,216.8 h = $67.70
  7. Overhead per billable hour$120,000 ÷ (3 × 1,216.8 h) = $32.87
  8. Truck per billable hour$16,719.14 ÷ 1,216.8 h = $13.74
  9. Break-even$67.70 + $32.87 + $13.74 = $114.32
  10. Rate at 10% profit$114.32 ÷ (1 − 10%) = $127.02

Change the numbers

State and trade
Trade

Fills the wage and state unemployment tax (SUTA). Workers’ comp and everything else stay as they are.

Filled for Maryland3 figures
Wage Plumbing
$31.44/hr
Maryland median for plumbers · BLS OEWS May 2025
SUTA rate New employer
2.60%
New-employer rate; no separate construction rate found · DOL Significant Provisions, July 2026
SUTA wage base Per tech
$8,500
Maryland · DOL Significant Provisions, July 2026

Your own rate notice wins. These are new-employer rates: after one to three years the state sets your own, and construction employers often pay a different rate.

Maryland: pay, payroll taxes and licensesSee all 50 states and DC
Maryland: the fine print

Maryland Labor (Table A, 2026): new-employer rates “may range from 1.0% to 2.6%”. Out-of-state (foreign) construction contractors pay the Maryland construction-industry average, but not less than the new-employer rate.

Crew and pay

People who bill hours. Office staff go in overhead.

Average base pay. Filled: Maryland median for plumbers, BLS OEWS May 2025.

Hours and time off2,080 h · 26 days off

40 hours × 52 weeks = 2,080.

Holidays, vacation and sick days, 8 h each. Example: 8 + 11 + 7 (BLS).

Optional. Paid at 1.5 × the wage. Leave 0 if none.

Billable time

Share of worked hours that ends up on invoices. Published figures run from 30% to 65%.

Billable hours1,216.8 hper tech · 3,650.4 h for the shop
Payroll taxes and benefits+25.97% of pay

Filled: Maryland new-employer rate, DOL Significant Provisions, July 2026. Your notice wins.

Pay per tech the rate applies to. Filled: Maryland, DOL Significant Provisions, July 2026.

Use the rate on your policy. Example: BLS construction average.

Health, retirement and other benefits. Example: BLS construction average.

Loaded wage$39.61per paid hour · burden 25.97%

Included automatically (IRS, tax year 2026): Social Security 6.2% of pay up to $184,500, Medicare 1.45%, federal unemployment (FUTA) 0.6% of the first $7,000.

Shop costs

An example figure. Everything except field pay and trucks — split it in the worksheet below.

Payments, fuel, insurance and upkeep. Enter 0 if trucks are already in overhead.

Profit

Profit as a share of the price, not a markup on cost.

Your rate: $127.02 per billable hour · break-even $114.32. Back to the result

Sales tax on your work

What Maryland’s tax agency says about repair and installation labor on buildings and the parts and fixtures that go into them. This is what the agency’s pages say, not tax advice.

Labor
Not taxedLabor to install, erect, assemble or repair real property isn’t taxable, whether it’s billed separately or as a lump sum.Whether an installed item becomes real property depends mainly on the intent to improve the property permanently. For personal property, installation labor is untaxed only when separately stated.
Materials
Contractor, when buyingReal property contractors pay the 6% sales tax on building materials and supplies and charge the customer no tax.

Read October 24, 2026 on the agency pages listed under Sources. All 50 states and DC side by side.

Licenses and state fees

The license a shop needs from the state to contract for each trade, the board that issues it and the fees on its own schedule. Cities and counties can add their own licenses, registrations and permit fees; exam vendors and fingerprinting may charge more.

Plumbing

State license; local rules may add more

Maryland State Board of Plumbing (Maryland Department of Labor)

Master Plumber/Gas Fitter

An individual must be licensed by the Board before providing plumbing services in the State (Bus. Occ. & Prof. §12-301); each master plumber must display the license at the principal place of business and the license number on each vehicle used on the job (§12-311).

FeeAmount
Master plumber/gas fitter examination fee (paid to PSI)per exam$65
Original master plumber/gas fitter license(fees as of January 1, 2025)2 years (expires May 1 of odd-numbered year)$87.50
Master plumber/gas fitter license renewal(as of January 1, 2025)2 years$87.50

License fees are set in COMAR 09.20.05.03(B) (as of Jan 1, 2025) and listed on the Board’s Forms and Fees page. The exam fee is paid to the testing company PSI (PSI candidate bulletin updated Sept 1, 2024). Licenses run 2-year terms (§12-308). WSSC (Prince George’s and parts of Montgomery County) and Baltimore County run their own plumbing licensing.

Keeping the license

Renewal
State Board of Plumbing licenses run for two-year terms expiring May 1 of odd-numbered years; a master who contracts work must file proof of the required liability insurance at renewal (Bus. Occ. §12-308). mgaleg.maryland.gov
Continuing ed.
The State Board of Plumbing requires no continuing education to keep a plumbing license; only plumbing inspector identification cards need 8 hours a year. labor.maryland.gov
Reciprocity
The State Board of Plumbing reciprocates only with Delaware (master plumber/gas fitter) and with two Maryland local licensing authorities, the Washington Suburban Sanitary Commission and Baltimore County (master or journey license; both plumbing and gas portions required). labor.maryland.gov

Sources read

HVAC

State license; local rules may add more

Maryland Board of Heating, Ventilation, Air Conditioning and Refrigeration Contractors (Maryland Department of Labor)

HVACR Master license (or Master Restricted / Limited)

An individual must be licensed by the Board before providing or assisting in providing heating, ventilation, air-conditioning or refrigeration services in the State (Bus. Reg. §9A-301); each contractor offering HVACR services in Maryland needs a Board license.

FeeAmount
HVACR Master original or renewal license fee(as of January 1, 2025)2 years (expires October 1 of odd-numbered year)$94.50

Exam fee is paid directly to the testing vendor PSI (the Board’s pages do not list the amount). Master Restricted is $31.50 per area licensed. Anne Arundel and Prince George’s Counties also require a county HVACR license.

Keeping the license

Renewal
HVACR licenses run for two-year terms expiring October 1 of odd-numbered years; renewal requires proof of the §9A-402 insurance (Bus. Reg. §9A-309). mgaleg.maryland.gov
Continuing ed.
The HVACR renewal statute (Bus. Reg. §9A-309) requires only the fee, proof of insurance and the application; no continuing-education requirement appears in it or in the board’s licensing FAQ. mgaleg.maryland.gov · labor.maryland.gov
Reciprocity
The HVACR Board has reciprocal licensing agreements with Delaware and Virginia; the applicant must hold an equivalent active license earned under requirements at least equal to Maryland’s, including years of experience. labor.maryland.gov

Sources read

Electrical

State license; local rules may add more

Maryland State Board of Electricians (Maryland Department of Labor)

Master Electrician (State license)

All electrical work in Maryland must be performed by a licensed Master, Journeyperson, or Apprentice Electrician; counties and municipalities either register electricians under their own regulations or require the State license (Bus. Occ. & Prof. §6-301).

FeeAmount
Original master electrician license(fees effective July 1, 2025)2 years (expires June 30 of odd-numbered year)$25
Master electrician license renewal2 years$31.50

Exam fee is paid directly to the Board’s testing service (amount not on the Board fee page). Uninsured status certificate $63. Fees per COMAR 09.09.01.03 as posted by the Board, effective July 1, 2025.

Keeping the license

Renewal
State electrician licenses run for two-year terms expiring June 30 of odd-numbered years; renewal requires the board’s continuing education (Bus. Occ. §6-310). mgaleg.maryland.gov
Continuing ed.
A master electrician needs 10 hours of qualifying continuing education and a journeyperson electrician 5 hours, completed during the 24 months before each two-year renewal (COMAR 09.09.02.01). regs.maryland.gov
Reciprocity
The State Board of Electricians has reciprocal agreements with Delaware, West Virginia, Virginia and the District of Columbia; a Maryland license obtained by reciprocating a local registration cannot be used to reciprocate into another state. labor.maryland.gov

Sources read

Beyond the trade license

Contractor registration, bond and insurance the state asks of a trade shop

Registration
Home-improvement contractors need a Maryland Home Improvement Commission (MHIC) contractor license (Bus. Reg. §8-301), but a licensed electrician, plumber or HVACR contractor is exempt while acting only within the scope of that trade license or installing a central heating or air-conditioning system. Counties and cities may not add their own home-improvement business licenses (§8-102(b)). mgaleg.maryland.gov
Bond
Maryland’s plumbing (Bus. Occ. §12-501), HVACR (Bus. Reg. §9A-402) and electrical (Bus. Occ. §6-604) laws require liability insurance from master licensees who contract work, not a surety bond. mgaleg.maryland.gov · labor.maryland.gov
Insurance
$300,000A master plumber, master HVACR contractor or master electrician who contracts work must carry at least $300,000 general liability (bodily injury) and $100,000 property damage insurance, including completed operations, and file the certificate with the board before a license is issued or renewed; umbrella coverage does not count. Masters who do not contract can hold uninsured or inactive status. mgaleg.maryland.gov · labor.maryland.gov

Board and statute pages read

State or city license?

State and local Who licenses the trades in Maryland

All three trades are licensed by the state and also locally. The Washington Suburban Sanitary Commission (Prince George’s and parts of Montgomery County) and Baltimore County issue their own plumber and gasfitter licenses; Anne Arundel and Prince George’s Counties require a county HVACR license on top of the state license; and each county either registers electricians under its own rules or requires the State license (Bus. Occ. §6-301). labor.maryland.gov · wsscwater.com · mgaleg.maryland.gov

State and city pages read

What Maryland law says about lien rights on private jobs — the notices, the deadline to file and the deadline to sue — and whether a statute sets payment deadlines or caps retainage. Read from the statute itself; it is not legal advice.

Mechanic’s lien

Md. Code, Real Property §9-101 et seq.Article – Real Property, Title 9, Subtitle 1 (mechanics’ liens)

You, hired by the owner
No notice to startA contractor who contracts with the owner gives no notice before or during the job; the notice of intention to claim a lien in Real Property §9-104 is required only of subcontractors. The prime starts the lien by filing a petition in circuit court within 180 days (§9-105). mgaleg.maryland.gov
Subs and suppliers
Notice requiredA subcontractor or supplier must give the owner a sworn “Notice to Owner or Owner’s Agent of Intention to Claim a Lien” within 120 days after doing the work or furnishing the materials, by certified or registered mail or personal delivery, or by posting on the building if it cannot be delivered (Real Property §9-104). mgaleg.maryland.gov
File the lien
180 daysFile a petition to establish the mechanic’s lien in the circuit court for the county within 180 days after the work was finished or materials furnished (Real Property §9-105(a)); the same deadline applies to subs, who must also show their §9-104 notice was given. mgaleg.maryland.gov
Enforce it
1 yearThe right to enforce an established lien expires one year after the petition to establish it was first filed; file the petition to enforce within that year (Real Property §9-109). mgaleg.maryland.gov
Homes
On a single family dwelling being built on the owner’s land for the owner’s own residence, a sub has a lien only if the owner had not paid the contractor in full before receiving the sub’s notice, and the lien cannot exceed what the owner still owed when the notice was given (Real Property §9-104(a)(2), (f)(3)). mgaleg.maryland.gov

Statutes read

Payment deadlines and retainage

Private jobs (public contracts have their own rules)

Prompt payment
Statute sets deadlinesOn private jobs, an owner must pay undisputed amounts within 7 days after the payment date set in the contract, or, if the contract sets no dates, within 30 days after the occupancy permit or the owner taking possession, whichever is earlier; a contractor or sub must pay its subs within 7 days after it is paid for their work (Real Property §9-302). No fixed interest rate: a court may award interest, costs, and attorney fees for bad faith (§9-303). mgaleg.maryland.gov
Retainage
Capped at 5%On private contracts of $100,000 or more where the contractor has furnished 100% performance and payment security, retainage may not exceed 5%, and subs cannot be held to a higher percentage than the owner holds; undisputed retainage must be paid within 90 days after substantial completion (Real Property §9-304). Contracts under $100,000 are not covered. mgaleg.maryland.gov

Statutes read

Heating and cooling season in Maryland

Degree days, NOAA’s index of the energy it takes to heat or cool a building: each degree a day’s mean temperature falls below 65 °F is one heating degree day, each degree above is one cooling degree day. Thirty-year normals for BWI airport, month by month.

Heating degree days
4,484
Cooling degree days
1,322
Nights ≤ 32 °F
93
Days ≥ 90 °F
34
Normal heating and cooling degree days (base 65 °F) and freezing nights by month at BWI airport, NOAA 1991–2020 normals
MonthHeatingCoolingNights ≤ 32 °F
Jan951024
Feb794021
Mar642214
Apr318192
May10990–
Jun11266–
Jul0411–
Aug1346–
Sep36163–
Oct260241
Nov544110
Dec820021

Heating carries the load at BWI airport: 4,484 heating degree days a year against 1,322 cooling degree days, peaking in January (951).

The lightest months for heating and cooling together are May and September (199 and 199 degree days).

Nights at or below 32 °F: about 93 a year, ten or more a month in November through March. Days reaching 90 °F: about 34 a year, the most in July.

Weighted by where Maryland’s people live, NOAA’s statewide normals (1981–2010) are 4,577 heating and 1,218 cooling degree days — 30th for heating and 17th for cooling among the 48 contiguous states (the contiguous U.S.: 4,332 and 1,272).

Station: BWI airport (USW00093721), NOAA NCEI U.S. Climate Normals 1991–2020 — station file; statewide figures: NOAA Climate Prediction Center. Bars share one scale: the longest is 951 degree days. Read .

Sources

Each page opened on the date shown. License, registration, lien and workers’ comp sources are linked beside each fact above. Figures change: the agency’s own page wins over this one.

  1. May 2025 State Occupational Employment and Wage Estimates (state file oesm25st)U.S. Bureau of Labor Statistics · read October 28, 2026
  2. Occupational Employment and Wages — May 2025 (news release USDL-26-0725, May 15, 2026)U.S. Bureau of Labor Statistics · read October 28, 2026
  3. Public Data API (national OEWS series for the three occupations)U.S. Bureau of Labor Statistics · read October 28, 2026
  4. Unemployment insurance tax rates (labor.maryland.gov)Maryland Department of Labor, Division of Unemployment Insurance · read October 28, 2026
  5. Significant Provisions of State Unemployment Insurance Laws, Effective July 2026U.S. Department of Labor, Office of Unemployment Insurance · read October 28, 2026
  6. Maryland Family and Medical Leave Insurance (FAMLI)Maryland Department of Labor - FAMLI Division · read October 28, 2026
  7. Business Tax Tip #18: Real Property Contractors and Maryland TaxesComptroller of Maryland · updated February 14, 2022 · read October 24, 2026
  8. Md. Code, Real Property §9-101 et seq. — Article – Real Property, Title 9, Subtitle 1 (mechanics’ liens)Official state code · read November 4, 2026
  9. Workers’ compensation coverage requirementsMaryland Workers' Compensation Commission · read November 4, 2026
  10. U.S. Climate Normals 1991–2020, BWI airport (USW00093721)NOAA National Centers for Environmental Information · read November 4, 2026
  11. Population-weighted daily heating and cooling degree day normals, 1981–2010 (states and CONUS)NOAA National Weather Service, Climate Prediction Center · read November 4, 2026