Maryland vs Texas: Business Hiring Cost Comparison (2026)
A $60K employee costs $65,651 in Maryland and $65,337 in Texas. Texas saves $314/year per hire.
Texas is $314 per year cheaper than Maryland for a $60,000 employee in 2026, with total employer costs of $65,337 vs $65,651 including all mandatory payroll taxes.
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At a $60,000 salary
Texas saves $314/employee/year
$65,651 in Maryland vs $65,337 in Texas
Maryland
$65,651
1.09x salary
Texas
$65,337
1.09x salary
Shareable Insights
Maryland adds $150 in mandatory programs
Disability insurance and paid family leave that Texas doesn't require.
Cost Breakdown Comparison
Based on $60,000 annual salary
| Cost Component | MD | TX | Diff |
|---|---|---|---|
| Base Salary | $60,000 | $60,000 | — |
| Social Security (6.2%) | $3,720 | $3,720 | — |
| Medicare (1.45%) | $870 | $870 | — |
| FUTA (0.6%) | $42 | $42 | — |
| SUTA (State Unemployment) | $179 | $135 | +$44 |
| Workers' Compensation | $690 | $570 | +$120 |
| State-Mandated Insurance | $150 | $0 | +$150 |
| Total Employer Cost | $65,651 | $65,337 | +$314 |
Tax Rate Comparison
| Rate | Maryland | Texas |
|---|---|---|
| SUTA Rate Range | 0.3% – 7.2% | 0.32% – 6.31% |
| SUTA Typical Rate | 2.1% | 1.5% |
| SUTA Wage Base | $8,500 | $9,000 |
| Workers' Comp Rate | 1.15% | 0.95% |
| State Income Tax | Yes | No |
| Paid Family Leave | 0.25% | Not required |
What This Means for Employers
For a business hiring at a $60,000 salary, choosing Texas over Maryland saves $314 per employee per year in employer-side payroll costs alone. For a team of 10, that's $3,135 annually — enough to fund an additional hire or significantly offset operating costs.
The biggest difference comes from workers' compensation rates — Maryland charges 1.15% of payroll vs Texas's 0.95%. Workers' comp rates vary by industry within each state, so high-risk industries (construction, manufacturing) will see larger absolute dollar differences. Federal taxes — Social Security (6.2%), Medicare (1.45%), and FUTA (0.6%) — are identical in both states and account for the majority of employer tax burden.
A notable difference between these states is mandatory benefit programs. Maryland requires employer contributions to paid family leave programs that Texas does not mandate — adding $150 per employee annually.
These numbers reflect employer-side costs only and don't include benefits, overhead, or the employee's own tax burden. Use the interactive Employee Cost Calculator to model different salary levels and benefits packages.
Choosing Between Maryland and Texas?
Cost alone favors Texas: At a $60K salary, you save $314 per employee — a real number that compounds across a growing team. At 20 employees, that's $6,270/year before factoring in any raises.
When Maryland might still make sense: If your business depends on talent concentrated in Maryland — tech workers, finance professionals, specialized trades — the labor market access may outweigh the payroll cost premium. Remote-friendly roles, however, make the $314/employee savings a strong argument for Texas-based registration.
What this comparison doesn't capture: State income tax (employee side) affects your offer competitiveness — employees in high-tax states need higher gross pay to net the same take-home. Maryland has state income tax; Texas has no state income tax. This affects what salary you need to offer to attract equivalent candidates.
State Employment Profiles
Maryland
Maryland's FAMLI paid family leave program (employer ~0.25%) launched in 2026 and adds to a moderate-to-high employer cost profile anchored by proximity to federal agencies.
federal government & contracting, cybersecurity & defense, healthcare
Fort Meade, NIH, and NSA create a large cleared-workforce labor market; security clearance holders command significant premiums that affect overall compensation budgets.
Texas
Texas has no state income tax, a minimal $9,000 SUTA wage base, and no paid family leave or disability insurance mandates — a primary reason it consistently ranks among the lowest employer-cost states.
energy & petrochemicals, technology (Austin/Dallas), financial services
Texas has absorbed massive corporate relocations from California (Tesla, Oracle, HP Enterprise); in Austin especially, California-level compensation expectations have followed these moves.
Employer Environment in Each State
Key factors that shape employer costs beyond the numbers above
- State income tax applies — factor into total compensation packages
- SUTA rate 2.1% (wage base $8,500) — in line with national average
- Workers' comp rate 1.15% — near national average, varies by industry classification
- State paid family leave program (0.25% employer share) — additional mandatory payroll cost
- No state income tax — employees keep more of their paycheck, a recruiting advantage
- SUTA rate 1.5% (wage base $9,000) — in line with national average
- Workers' comp rate 0.95% — near national average, varies by industry classification
Hiring Strategy Takeaway
The $314 per-employee cost gap at $60K salary is primarily driven by state-mandated insurance programs. Texas's lack of state income tax gives it a recruiting edge — employees take home more pay for equivalent salaries. For a growing business, this difference compounds quickly — a 10-person team in Texas costs $3,135 less annually than the same team in Maryland, before accounting for benefits, overhead, or salary-level differences.
Explore Each State
Cost Comparison at Different Salary Levels
How the gap changes from $30K to $150K
| Salary | MD Total | TX Total | Difference |
|---|---|---|---|
| $30,000 | $32,936 | $32,757 | +$179 |
| $40,000 | $43,841 | $43,617 | +$224 |
| $50,000 | $54,746 | $54,477 | +$269 |
| $60,000 | $65,651 | $65,337 | +$314 |
| $75,000 | $82,008 | $81,627 | +$381 |
| $100,000 | $109,271 | $108,777 | +$494 |
| $125,000 | $136,533 | $135,927 | +$606 |
| $150,000 | $163,796 | $163,077 | +$719 |
Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of MD.
What About Startup Costs?
Hiring is one piece. See what it costs to actually open in these states.
Maryland
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