diff --git a/changelog.d/md-famli-contributions.added.md b/changelog.d/md-famli-contributions.added.md
new file mode 100644
index 00000000000..770d6954788
--- /dev/null
+++ b/changelog.d/md-famli-contributions.added.md
@@ -0,0 +1 @@
+Add Maryland Family and Medical Leave Insurance payroll contributions, which begin January 1, 2027 at 0.9% of wages up to the Social Security wage base, split equally between employees and employers of 15 or more employees.
diff --git a/policyengine_us/parameters/gov/states/md/tax/payroll/famli/employee_share.yaml b/policyengine_us/parameters/gov/states/md/tax/payroll/famli/employee_share.yaml
new file mode 100644
index 00000000000..6150783ba9d
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/md/tax/payroll/famli/employee_share.yaml
@@ -0,0 +1,22 @@
+description: Maryland charges employees this share of the total contribution rate under the Family and Medical Leave Insurance program.
+values:
+  0000-01-01: 0
+  # An employer of 15 or more employees pays the other half. An employer may
+  # elect to pay some or all of this share, and may not deduct more than it.
+  2027-01-01: 0.5
+
+metadata:
+  period: year
+  unit: /1
+  label: Maryland FAMLI employee share of the total contribution rate
+  reference:
+    - title: Md. Code, Labor and Employment § 8.3-601(e)
+      href: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=8.3-601&enactments=false
+    - title: COMAR 09.42.02.05, employer contributions
+      href: https://regs.maryland.gov/us/md/exec/comar/09.42.02.05
+    - title: COMAR 09.42.02.07, failure to deduct from payroll
+      href: https://regs.maryland.gov/us/md/exec/comar/09.42.02.07
+    - title: Maryland Department of Labor, FAMLI Frequently Asked Questions on contributions (updated October 2026), question 1
+      href: https://paidleave.maryland.gov/files/famli-faqs_-contribution-questions.pdf#page=1
+    - title: Maryland Department of Labor, Make contributions, How contribution amounts are split
+      href: https://paidleave.maryland.gov/employers/make-contributions/
diff --git a/policyengine_us/parameters/gov/states/md/tax/payroll/famli/employer_headcount_threshold.yaml b/policyengine_us/parameters/gov/states/md/tax/payroll/famli/employer_headcount_threshold.yaml
new file mode 100644
index 00000000000..d09e57cb1b2
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/md/tax/payroll/famli/employer_headcount_threshold.yaml
@@ -0,0 +1,23 @@
+description: Maryland requires employers with at least this many employees to pay the employer share under the Family and Medical Leave Insurance program.
+values:
+  0000-01-01: 0
+  # A smaller employer owes no employer share but still remits the employee
+  # share. The count covers every employee paid wages, inside or outside
+  # Maryland.
+  2027-01-01: 15
+
+metadata:
+  period: year
+  unit: person
+  label: Maryland FAMLI employer share headcount threshold
+  reference:
+    - title: Md. Code, Labor and Employment § 8.3-601(a)(1)(i), (e)(1)(i)
+      href: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=8.3-601&enactments=false
+    - title: COMAR 09.42.02.01B(1), small employer
+      href: https://regs.maryland.gov/us/md/exec/comar/09.42.02.01
+    - title: COMAR 09.42.02.06, employer size
+      href: https://regs.maryland.gov/us/md/exec/comar/09.42.02.06
+    - title: "Maryland Department of Labor, FAMLI policy guidance on small employers, Control E-26-002 (September 18, 2026) #page 1-2"
+      href: https://paidleave.maryland.gov/files/famli-policy-guidance-on-small-employers.pdf#page=1
+    - title: Maryland Department of Labor, FAMLI Frequently Asked Questions on contributions (updated October 2026), question 1
+      href: https://paidleave.maryland.gov/files/famli-faqs_-contribution-questions.pdf#page=1
diff --git a/policyengine_us/parameters/gov/states/md/tax/payroll/famli/total_rate.yaml b/policyengine_us/parameters/gov/states/md/tax/payroll/famli/total_rate.yaml
new file mode 100644
index 00000000000..3aa8840fbcf
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/md/tax/payroll/famli/total_rate.yaml
@@ -0,0 +1,27 @@
+description: Maryland applies this total contribution rate to wages up to the Social Security wage base under the Family and Medical Leave Insurance program.
+values:
+  0000-01-01: 0
+  # The Secretary of Labor sets the rate; the statute caps it at 1.2% of wages
+  # and fixes no number. Maryland Labor set 0.9% for wages paid in 2027. The
+  # Secretary sets the 2028 rate by November 1, 2027.
+  2027-01-01: 0.009
+
+metadata:
+  period: year
+  unit: /1
+  label: Maryland FAMLI total contribution rate
+  reference:
+    - title: Md. Code, Labor and Employment § 8.3-601(a)(1), (b), (d)
+      href: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=8.3-601&enactments=false
+    - title: "Laws of Maryland 2025, Chapter 363 (HB 102), Section 1, amending § 8.3-601 to start contributions on January 1, 2027 #page 3-4"
+      href: https://mgaleg.maryland.gov/2025RS/Chapters_noln/CH_363_hb0102t.pdf#page=3
+    - title: COMAR 09.42.02.01B(3), total rate of contribution
+      href: https://regs.maryland.gov/us/md/exec/comar/09.42.02.01
+    - title: COMAR 09.42.02.08A, quarterly contribution calculation
+      href: https://regs.maryland.gov/us/md/exec/comar/09.42.02.08
+    - title: Maryland Department of Labor, FAMLI Frequently Asked Questions on contributions (updated October 2026), question 1
+      href: https://paidleave.maryland.gov/files/famli-faqs_-contribution-questions.pdf#page=1
+    - title: Maryland Department of Labor, Make contributions, How FAMLI contribution rates will be set
+      href: https://paidleave.maryland.gov/employers/make-contributions/
+    - title: Maryland Department of Labor, FAMLI policy guidance on small employers, Control E-26-002 (September 18, 2026), footnote 1
+      href: https://paidleave.maryland.gov/files/famli-policy-guidance-on-small-employers.pdf#page=1
diff --git a/policyengine_us/tests/core/test_md_famli_invariants.py b/policyengine_us/tests/core/test_md_famli_invariants.py
new file mode 100644
index 00000000000..166c896332c
--- /dev/null
+++ b/policyengine_us/tests/core/test_md_famli_invariants.py
@@ -0,0 +1,376 @@
+"""Invariants for Maryland Family and Medical Leave Insurance contributions.
+
+The YAML cases under gov/states/md/tax/payroll/famli pin hand-computed values
+at chosen points. A YAML case can't compare one person's output with another's,
+so this file checks what must hold for every input: twins that differ in one
+fact, and the worker-level and employer-level paths against each other. The
+expected values come from Md. Code, Lab. & Empl. s. 8.3-601 and Maryland Labor's
+0.9% rate, not from the parameters.
+
+Hypothesis draws batches of workers, each alone in a household, across wage
+levels, pre-tax amounts and employer sizes. Each batch runs as one vectorized
+simulation, and each worker enters it as four twins: as drawn, with higher
+wages, with a larger employer, and in Virginia, which has no such program.
+
+1. Nothing before 2027: both shares and the state payroll tax are zero in 2026.
+2. Base: taxable wages equal gross wages less cafeteria plan and dependent care
+   amounts, floored at zero and capped at the Social Security wage base. 401(k)
+   deferrals stay in.
+3. Split and conservation: the employee pays 0.45% of the base at any employer.
+   At 15 or more employees the two shares sum to 0.9% of the base. Below 15 the
+   employer owes nothing.
+4. Bounds: in 2027 each share runs from 0 to 0.45% of the $192,300 wage base.
+5. Monotonicity: both shares rise weakly with wages. The employer share rises
+   weakly with employer size, and the employee share ignores it.
+6. Geography: every Maryland amount is zero outside Maryland.
+7. Flow: employee_state_payroll_tax, employee_payroll_tax and
+   spm_unit_payroll_tax exceed the Virginia twin's by the employee share, and
+   household_net_income falls short of it by that share. The employer share
+   leaves net income unchanged. A second simulation without the income tax,
+   benefit and health cost overrides shows the same fall in net income.
+8. Differential: for a one-worker employer, the employer-level total equals the
+   worker-level employer share.
+9. Parameters: the total rate never exceeds the 1.2% statutory cap, and the
+   employee share stays within 0 to 1.
+
+The batches set income taxes, credits, benefits and health costs to zero, as
+the YAML integration cases do, which keeps them cheap. Only the check in point 7
+without those overrides runs the whole model, on five households.
+"""
+
+import numpy as np
+import pytest
+from hypothesis import HealthCheck, given, settings
+from hypothesis import strategies as st
+
+from policyengine_us import Simulation
+from policyengine_us.system import system
+
+TOLERANCE = 0.01  # dollars
+# Net income is a sum of float32 amounts, which lose cents at high incomes.
+NET_INCOME_TOLERANCE = 0.25  # dollars
+
+TOTAL_RATE = 0.009
+EMPLOYEE_RATE = 0.0045
+EMPLOYER_RATE = 0.0045
+HEADCOUNT_THRESHOLD = 15
+RATE_CAP = 0.012
+WAGE_BASE = {2026: 184_500, 2027: 192_300}
+
+TAX_UNIT_OVERRIDES = [
+    "income_tax_before_refundable_credits",
+    "local_income_tax_before_refundable_credits",
+]
+HOUSEHOLD_OVERRIDES = [
+    "household_state_tax_before_refundable_credits",
+    "household_refundable_tax_credits",
+    "household_benefits",
+    "household_health_costs",
+]
+DRAWN_INPUTS = [
+    "employment_income",
+    "pre_tax_health_insurance_premiums",
+    "health_savings_account_payroll_contributions",
+    "dependent_care_employer_benefits",
+    "traditional_401k_contributions",
+    "employer_headcount",
+]
+PERSON_OUTPUTS = [
+    "md_famli_taxable_wages",
+    "md_employee_famli_contribution",
+    "md_employer_famli_contribution",
+    "md_employee_state_payroll_tax",
+    "md_employer_additional_state_payroll_tax",
+    "employer_additional_state_payroll_tax",
+    "employer_total_additional_state_payroll_tax",
+    "employer_total_md_famli_taxable_wages",
+]
+UNIT_OUTPUTS = [
+    "employee_state_payroll_tax",
+    "employee_payroll_tax",
+    "spm_unit_payroll_tax",
+    "household_net_income",
+]
+
+# Twin order within each drawn worker.
+AS_DRAWN, MORE_WAGES, MORE_EMPLOYEES, IN_VIRGINIA = range(4)
+N_TWINS = 4
+
+# Wages at and around the 2026 and 2027 bases, then anything up to well above.
+wages = st.one_of(
+    st.sampled_from(
+        [0.0, 1.0, 184_499.0, 184_500.0, 184_501.0, 192_299.0, 192_300.0, 192_301.0]
+    ),
+    st.integers(0, 400_000).map(float),
+)
+small_amount = st.one_of(st.just(0.0), st.integers(1, 12_000).map(float))
+headcount = st.one_of(st.sampled_from([1, 14, 15, 16]), st.integers(1, 5_000))
+
+
+@st.composite
+def workers(draw):
+    return {
+        "employment_income": draw(wages),
+        "pre_tax_health_insurance_premiums": draw(small_amount),
+        "health_savings_account_payroll_contributions": draw(small_amount),
+        "dependent_care_employer_benefits": draw(small_amount),
+        "traditional_401k_contributions": draw(small_amount),
+        "employer_headcount": draw(headcount),
+        "raise": float(draw(st.integers(1, 100_000))),
+        "more_employees": draw(st.integers(1, 100)),
+    }
+
+
+def _gross_wages(worker):
+    """Independent wage base before the cap: 401(k) deferrals stay in."""
+    return max(
+        0.0,
+        worker["employment_income"]
+        - worker["pre_tax_health_insurance_premiums"]
+        - worker["health_savings_account_payroll_contributions"]
+        - worker["dependent_care_employer_benefits"],
+    )
+
+
+def _twins(worker, year):
+    drawn = {
+        **{name: worker[name] for name in DRAWN_INPUTS},
+        # The employer-level path takes a one-worker employer's capped wages.
+        "employer_total_taxable_earnings_for_social_security": min(
+            _gross_wages(worker), WAGE_BASE[year]
+        ),
+    }
+    return [
+        ("MD", drawn),
+        (
+            "MD",
+            {
+                **drawn,
+                "employment_income": drawn["employment_income"] + worker["raise"],
+            },
+        ),
+        (
+            "MD",
+            {
+                **drawn,
+                "employer_headcount": drawn["employer_headcount"]
+                + worker["more_employees"],
+            },
+        ),
+        ("VA", drawn),
+    ]
+
+
+def _situation(rows, year, *, overrides=True):
+    plurals = ["tax_units", "spm_units", "families", "marital_units", "households"]
+    people, groups = {}, {plural: {} for plural in plurals}
+    for i, (state, inputs) in enumerate(rows):
+        name = f"person_{i}"
+        people[name] = {
+            "age": {year: 40},
+            **{key: {year: value} for key, value in inputs.items()},
+        }
+        for plural in plurals:
+            groups[plural][f"{plural}_{i}"] = {"members": [name]}
+        groups["households"][f"households_{i}"]["state_code"] = {year: state}
+        if overrides:
+            for key in TAX_UNIT_OVERRIDES:
+                groups["tax_units"][f"tax_units_{i}"][key] = {year: 0}
+            for key in HOUSEHOLD_OVERRIDES:
+                groups["households"][f"households_{i}"][key] = {year: 0}
+    return {"people": people, **groups}
+
+
+def _run(rows, year):
+    sim = Simulation(situation=_situation(rows, year))
+    return {
+        name: np.asarray(sim.calculate(name, year), dtype=float)
+        for name in PERSON_OUTPUTS + UNIT_OUTPUTS
+    }
+
+
+def _rows(batch, year):
+    return [twin for worker in batch for twin in _twins(worker, year)]
+
+
+def _at(run, name, twin):
+    return run[name][twin::N_TWINS]
+
+
+def _check_2027(batch):
+    year = 2027
+    run = _run(_rows(batch, year), year)
+    cap = WAGE_BASE[year]
+    gross = np.array([_gross_wages(w) for w in batch])
+    base = np.minimum(gross, cap)
+    size = np.array([w["employer_headcount"] for w in batch])
+
+    taxable = _at(run, "md_famli_taxable_wages", AS_DRAWN)
+    employee = _at(run, "md_employee_famli_contribution", AS_DRAWN)
+    employer = _at(run, "md_employer_famli_contribution", AS_DRAWN)
+
+    # 2. Base, with the 401(k) deferrals left in.
+    np.testing.assert_allclose(taxable, base, atol=TOLERANCE)
+    assert (taxable >= 0).all() and (taxable <= cap + TOLERANCE).all()
+
+    # 3. Split and conservation.
+    liable = size >= HEADCOUNT_THRESHOLD
+    np.testing.assert_allclose(employee, EMPLOYEE_RATE * base, atol=TOLERANCE)
+    np.testing.assert_allclose(
+        employer, np.where(liable, EMPLOYER_RATE * base, 0), atol=TOLERANCE
+    )
+    np.testing.assert_allclose(
+        (employee + employer)[liable], TOTAL_RATE * base[liable], atol=TOLERANCE
+    )
+
+    # 4. Bounds.
+    most = EMPLOYEE_RATE * cap + TOLERANCE
+    for name in ["md_employee_famli_contribution", "md_employer_famli_contribution"]:
+        assert (run[name] >= 0).all() and (run[name] <= most).all(), name
+
+    # 5. Monotonicity in wages and in employer size.
+    for name in ["md_employee_famli_contribution", "md_employer_famli_contribution"]:
+        assert (
+            _at(run, name, MORE_WAGES) >= _at(run, name, AS_DRAWN) - TOLERANCE
+        ).all(), name
+    assert (
+        _at(run, "md_employer_famli_contribution", MORE_EMPLOYEES)
+        >= employer - TOLERANCE
+    ).all()
+    np.testing.assert_allclose(
+        _at(run, "md_employee_famli_contribution", MORE_EMPLOYEES),
+        employee,
+        atol=TOLERANCE,
+    )
+
+    # 6. Geography.
+    for name in PERSON_OUTPUTS:
+        np.testing.assert_array_equal(_at(run, name, IN_VIRGINIA), 0, err_msg=name)
+
+    # 7. Flow, against the Virginia twin with the same wages.
+    for name in [
+        "employee_state_payroll_tax",
+        "employee_payroll_tax",
+        "spm_unit_payroll_tax",
+    ]:
+        np.testing.assert_allclose(
+            _at(run, name, AS_DRAWN) - _at(run, name, IN_VIRGINIA),
+            employee,
+            atol=TOLERANCE,
+            err_msg=name,
+        )
+    np.testing.assert_allclose(
+        _at(run, "household_net_income", IN_VIRGINIA)
+        - _at(run, "household_net_income", AS_DRAWN),
+        employee,
+        atol=NET_INCOME_TOLERANCE,
+    )
+    # A larger employer can move the employer share, never net income.
+    np.testing.assert_allclose(
+        _at(run, "household_net_income", MORE_EMPLOYEES),
+        _at(run, "household_net_income", AS_DRAWN),
+        atol=NET_INCOME_TOLERANCE,
+    )
+
+    # 8. Worker-level and employer-level paths agree for a one-worker employer.
+    np.testing.assert_allclose(
+        _at(run, "employer_total_md_famli_taxable_wages", AS_DRAWN),
+        base,
+        atol=TOLERANCE,
+    )
+    np.testing.assert_allclose(
+        _at(run, "employer_total_additional_state_payroll_tax", AS_DRAWN),
+        _at(run, "employer_additional_state_payroll_tax", AS_DRAWN),
+        atol=TOLERANCE,
+    )
+    np.testing.assert_allclose(
+        _at(run, "employer_additional_state_payroll_tax", AS_DRAWN),
+        employer,
+        atol=TOLERANCE,
+    )
+
+
+def _check_2026(batch):
+    year = 2026
+    run = _run(_rows(batch, year), year)
+
+    # 1. The base exists, but no contribution does.
+    for name in [
+        "md_employee_famli_contribution",
+        "md_employer_famli_contribution",
+        "md_employee_state_payroll_tax",
+        "md_employer_additional_state_payroll_tax",
+        "employer_additional_state_payroll_tax",
+        "employer_total_additional_state_payroll_tax",
+        "employee_state_payroll_tax",
+    ]:
+        np.testing.assert_array_equal(run[name], 0, err_msg=name)
+    np.testing.assert_allclose(
+        _at(run, "employee_payroll_tax", AS_DRAWN),
+        _at(run, "employee_payroll_tax", IN_VIRGINIA),
+        atol=TOLERANCE,
+    )
+    assert (run["md_famli_taxable_wages"] <= WAGE_BASE[year] + TOLERANCE).all()
+
+
+# A batch's cost is mostly per-variable overhead, so each example is a large
+# batch and there are few examples.
+SETTINGS = dict(
+    max_examples=5,
+    deadline=None,
+    derandomize=True,
+    suppress_health_check=[HealthCheck.too_slow, HealthCheck.data_too_large],
+)
+
+
+@settings(**SETTINGS)
+@given(st.lists(workers(), min_size=10, max_size=40))
+def test_contribution_invariants_2027(batch):
+    _check_2027(batch)
+
+
+@settings(**SETTINGS)
+@given(st.lists(workers(), min_size=10, max_size=40))
+def test_no_contribution_in_2026(batch):
+    _check_2026(batch)
+
+
+def test_net_income_falls_by_the_employee_share_without_overrides():
+    # The batches above zero out income taxes and benefits. These households
+    # run the whole model, with and without the employee share, and the only
+    # difference in net income is that share.
+    year = 2027
+    wage_levels = [15_000.0, 50_000.0, 120_000.0, 192_300.0, 300_000.0]
+    rows = [("MD", {"employment_income": level}) for level in wage_levels]
+    situation = _situation(rows, year, overrides=False)
+    base = Simulation(situation=situation)
+    no_share = Simulation(situation=situation)
+    no_share.set_input(
+        "md_employee_state_payroll_tax", year, np.zeros(len(wage_levels))
+    )
+    share = np.minimum(wage_levels, WAGE_BASE[year]) * EMPLOYEE_RATE
+    np.testing.assert_allclose(
+        np.asarray(base.calculate("md_employee_state_payroll_tax", year), dtype=float),
+        share,
+        atol=TOLERANCE,
+    )
+    np.testing.assert_allclose(
+        np.asarray(no_share.calculate("household_net_income", year), dtype=float)
+        - np.asarray(base.calculate("household_net_income", year), dtype=float),
+        share,
+        atol=NET_INCOME_TOLERANCE,
+    )
+
+
+def test_parameters_stay_within_the_statute():
+    # s. 8.3-601(a)(1)(ii) caps the total rate at 1.2%, whatever the Secretary
+    # sets each year.
+    famli = system.parameters.gov.states.md.tax.payroll.famli
+    rates = [entry.value for entry in famli.total_rate.values_list]
+    shares = [entry.value for entry in famli.employee_share.values_list]
+    assert rates and all(0 <= rate <= RATE_CAP for rate in rates)
+    assert shares and all(0 <= share <= 1 for share in shares)
+    assert famli.total_rate("2026-12-31") == 0
+    assert famli.total_rate("2027-01-01") == pytest.approx(TOTAL_RATE)
+    assert famli.employee_share("2027-01-01") == pytest.approx(0.5)
+    assert famli.employer_headcount_threshold("2027-01-01") == HEADCOUNT_THRESHOLD
diff --git a/policyengine_us/tests/policy/baseline/gov/states/md/tax/payroll/famli/integration.yaml b/policyengine_us/tests/policy/baseline/gov/states/md/tax/payroll/famli/integration.yaml
new file mode 100644
index 00000000000..773bd1cfe9c
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/md/tax/payroll/famli/integration.yaml
@@ -0,0 +1,148 @@
+# How Maryland FAMLI contributions reach payroll tax totals and household net
+# income. The net income cases set income taxes, credits, benefits and health
+# costs to zero, so net income is wages less employee payroll tax.
+# Social Security is 6.2% and Medicare 1.45% of wages.
+
+- name: Case 1, in 2026 the worker owes only federal payroll tax.
+  period: 2026
+  input:
+    employment_income: 50_000
+    state_code: MD
+    income_tax_before_refundable_credits: 0
+    household_state_tax_before_refundable_credits: 0
+    local_income_tax_before_refundable_credits: 0
+    household_refundable_tax_credits: 0
+    household_benefits: 0
+    household_health_costs: 0
+  output:
+    md_employee_state_payroll_tax: 0
+    employee_state_payroll_tax: 0
+    # 50,000 * 6.2% = 3,100; 50,000 * 1.45% = 725
+    employee_payroll_tax: 3_825
+    household_tax_before_refundable_credits: 3_825
+    # 50,000 - 3,825 = 46,175
+    household_net_income: 46_175
+
+- name: Case 2, in 2027 the employee contribution lowers net income dollar for dollar.
+  period: 2027
+  input:
+    employment_income: 50_000
+    state_code: MD
+    income_tax_before_refundable_credits: 0
+    household_state_tax_before_refundable_credits: 0
+    local_income_tax_before_refundable_credits: 0
+    household_refundable_tax_credits: 0
+    household_benefits: 0
+    household_health_costs: 0
+  output:
+    md_employee_state_payroll_tax: 225
+    employee_state_payroll_tax: 225
+    # 3,100 + 725 + 225 = 4,050
+    employee_payroll_tax: 4_050
+    spm_unit_payroll_tax: 4_050
+    household_tax_before_refundable_credits: 4_050
+    # 50,000 - 4,050 = 45,950
+    household_net_income: 45_950
+
+- name: Case 3, a Virginia household with the same wages owes no contribution.
+  period: 2027
+  input:
+    employment_income: 50_000
+    state_code: VA
+    income_tax_before_refundable_credits: 0
+    household_state_tax_before_refundable_credits: 0
+    local_income_tax_before_refundable_credits: 0
+    household_refundable_tax_credits: 0
+    household_benefits: 0
+    household_health_costs: 0
+  output:
+    md_employee_state_payroll_tax: 0
+    employee_state_payroll_tax: 0
+    employee_payroll_tax: 3_825
+    household_net_income: 46_175
+
+- name: Case 4, a married couple's contributions add up on the tax unit.
+  period: 2027
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 40
+        employment_income: 50_000
+      person2:
+        age: 40
+        employment_income: 250_000
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: MD
+  output:
+    md_employee_state_payroll_tax: [225, 865.35]
+    # 225 + 865.35 = 1,090.35
+    employee_state_payroll_tax: 1_090.35
+
+- name: Case 5, the employer contribution joins Maryland unemployment tax on the employer side.
+  period: 2027
+  input:
+    employment_income: 50_000
+    state_code: MD
+  output:
+    md_employer_additional_state_payroll_tax: 225
+    employer_additional_state_payroll_tax: 225
+    # 8,500 * 2.6% = 221 of unemployment tax, plus the 225 contribution.
+    employer_state_payroll_tax: 446
+
+- name: Case 6, the employer contribution stays out of employee payroll tax.
+  period: 2027
+  input:
+    employment_income: 50_000
+    employer_headcount: 14
+    state_code: MD
+  output:
+    md_employer_additional_state_payroll_tax: 0
+    employer_additional_state_payroll_tax: 0
+    # 8,500 * 2.6% = 221 of unemployment tax alone.
+    employer_state_payroll_tax: 221
+    # 3,100 + 725 + 225: the employee share stands without an employer share.
+    employee_payroll_tax: 4_050
+
+- name: Case 7, the employer-level total is 0.45% of the employer's taxable wages.
+  period: 2027
+  input:
+    employer_total_taxable_earnings_for_social_security: 1_000_000
+    employer_headcount: 40
+    state_code: MD
+  output:
+    # 1,000,000 * 0.9% * 50% = 4,500
+    employer_total_additional_state_payroll_tax: 4_500
+
+- name: Case 8, the employer-level total is zero for an employer of 14 employees.
+  period: 2027
+  input:
+    employer_total_taxable_earnings_for_social_security: 1_000_000
+    employer_headcount: 14
+    state_code: MD
+  output:
+    employer_total_additional_state_payroll_tax: 0
+
+- name: Case 9, the employer-level total applies at exactly 15 employees.
+  period: 2027
+  input:
+    employer_total_taxable_earnings_for_social_security: 1_000_000
+    employer_headcount: 15
+    state_code: MD
+  output:
+    # 1,000,000 * 0.9% * 50% = 4,500
+    employer_total_additional_state_payroll_tax: 4_500
+
+- name: Case 10, the employer-level total is zero in 2026.
+  period: 2026
+  input:
+    employer_total_taxable_earnings_for_social_security: 1_000_000
+    employer_headcount: 40
+    state_code: MD
+  output:
+    employer_total_additional_state_payroll_tax: 0
diff --git a/policyengine_us/tests/policy/baseline/gov/states/md/tax/payroll/famli/md_employee_famli_contribution.yaml b/policyengine_us/tests/policy/baseline/gov/states/md/tax/payroll/famli/md_employee_famli_contribution.yaml
new file mode 100644
index 00000000000..abba7d999d5
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/md/tax/payroll/famli/md_employee_famli_contribution.yaml
@@ -0,0 +1,117 @@
+# Contributions begin January 1, 2027 (Md. Code, Lab. & Empl. s.
+# 8.3-601(a)(1)(i)). Maryland Labor's 2027 total rate is 0.9%, and the employee
+# share is 50% of it (s. 8.3-601(e)(1)(ii)), so employees pay 0.45% of taxable
+# wages. Taxable wages stop at the 2027 Social Security wage base of $192,300.
+
+- name: Case 1, no contribution in 2026.
+  period: 2026
+  input:
+    employment_income: 50_000
+    state_code: MD
+  output:
+    md_employee_famli_contribution: 0
+
+- name: Case 2, 0.45% of wages in 2027.
+  period: 2027
+  input:
+    employment_income: 50_000
+    state_code: MD
+  output:
+    # 50,000 * 0.9% * 50% = 225
+    md_employee_famli_contribution: 225
+
+- name: Case 3, the contribution stops at the 2027 wage base.
+  period: 2027
+  absolute_error_margin: 0.01
+  input:
+    employment_income: 250_000
+    state_code: MD
+  output:
+    # 192,300 * 0.9% * 50% = 865.35
+    md_employee_famli_contribution: 865.35
+
+- name: Case 4, wages exactly at the 2027 wage base pay the most.
+  period: 2027
+  absolute_error_margin: 0.01
+  input:
+    employment_income: 192_300
+    state_code: MD
+  output:
+    # 192,300 * 0.9% * 50% = 865.35
+    md_employee_famli_contribution: 865.35
+
+- name: Case 5, an employee of an employer below 15 employees pays the same share.
+  period: 2027
+  input:
+    employment_income: 50_000
+    employer_headcount: 14
+    state_code: MD
+  output:
+    # Section 8.3-601(e)(1)(ii) reaches each employee of any employer.
+    # 50,000 * 0.9% * 50% = 225
+    md_employee_famli_contribution: 225
+
+- name: Case 6, the contribution uses wages after cafeteria plan amounts.
+  period: 2027
+  input:
+    employment_income: 60_000
+    pre_tax_health_insurance_premiums: 5_000
+    health_savings_account_payroll_contributions: 1_000
+    traditional_401k_contributions: 4_000
+    state_code: MD
+  output:
+    # (60,000 - 5,000 - 1,000) * 0.9% * 50% = 243. The 401(k) deferral stays in.
+    md_employee_famli_contribution: 243
+
+- name: Case 7, no wages, no contribution.
+  period: 2027
+  input:
+    employment_income: 0
+    state_code: MD
+  output:
+    md_employee_famli_contribution: 0
+
+- name: Case 8, self-employment income carries no contribution.
+  period: 2027
+  input:
+    self_employment_income: 100_000
+    state_code: MD
+  output:
+    md_employee_famli_contribution: 0
+
+- name: Case 9, no contribution outside Maryland.
+  period: 2027
+  input:
+    employment_income: 50_000
+    state_code: VA
+  output:
+    md_employee_famli_contribution: 0
+
+- name: Case 10, two earners each pay on their own wages.
+  period: 2027
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 40
+        employment_income: 50_000
+      person2:
+        age: 40
+        employment_income: 250_000
+    households:
+      household:
+        members: [person1, person2]
+        state_code: MD
+  output:
+    # 50,000 * 0.45% = 225; 192,300 * 0.45% = 865.35
+    md_employee_famli_contribution: [225, 865.35]
+
+- name: Case 11, a 401(k) deferral taken from salary stays in the contribution base.
+  period: 2027
+  input:
+    employment_income: 60_000
+    traditional_401k_contributions: 4_000
+    state_code: MD
+  output:
+    # 60,000 * 0.9% * 50% = 270. Taking the deferral out would give 252.
+    md_employee_famli_contribution: 270
diff --git a/policyengine_us/tests/policy/baseline/gov/states/md/tax/payroll/famli/md_employer_famli_contribution.yaml b/policyengine_us/tests/policy/baseline/gov/states/md/tax/payroll/famli/md_employer_famli_contribution.yaml
new file mode 100644
index 00000000000..a4903f73962
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/md/tax/payroll/famli/md_employer_famli_contribution.yaml
@@ -0,0 +1,89 @@
+# Contributions begin January 1, 2027 (Md. Code, Lab. & Empl. s.
+# 8.3-601(a)(1)(i)). An employer of 15 or more employees pays 50% of the 0.9%
+# total rate, or 0.45% of taxable wages (s. 8.3-601(e)(1)(i)). A smaller employer
+# owes no employer share (COMAR 09.42.02.06D). Taxable wages stop at the 2027
+# Social Security wage base of $192,300.
+
+- name: Case 1, no contribution in 2026.
+  period: 2026
+  input:
+    employment_income: 50_000
+    state_code: MD
+  output:
+    md_employer_famli_contribution: 0
+
+- name: Case 2, 0.45% of wages in 2027 at the default employer size.
+  period: 2027
+  input:
+    employment_income: 50_000
+    state_code: MD
+  output:
+    # 50,000 * 0.9% * 50% = 225
+    md_employer_famli_contribution: 225
+
+- name: Case 3, an employer of 14 employees owes no employer share.
+  period: 2027
+  input:
+    employment_income: 50_000
+    employer_headcount: 14
+    state_code: MD
+  output:
+    md_employer_famli_contribution: 0
+
+- name: Case 4, an employer of exactly 15 employees owes the employer share.
+  period: 2027
+  input:
+    employment_income: 50_000
+    employer_headcount: 15
+    state_code: MD
+  output:
+    # 50,000 * 0.9% * 50% = 225
+    md_employer_famli_contribution: 225
+
+- name: Case 5, the employer contribution stops at the 2027 wage base.
+  period: 2027
+  absolute_error_margin: 0.01
+  input:
+    employment_income: 250_000
+    state_code: MD
+  output:
+    # 192,300 * 0.9% * 50% = 865.35
+    md_employer_famli_contribution: 865.35
+
+- name: Case 6, no employer contribution in 2026 at any employer size.
+  period: 2026
+  input:
+    employment_income: 50_000
+    employer_headcount: 500
+    state_code: MD
+  output:
+    md_employer_famli_contribution: 0
+
+- name: Case 7, no employer contribution outside Maryland.
+  period: 2027
+  input:
+    employment_income: 50_000
+    state_code: VA
+  output:
+    md_employer_famli_contribution: 0
+
+- name: Case 8, each worker's employer is tested on its own size.
+  period: 2027
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 40
+        employment_income: 50_000
+        employer_headcount: 14
+      person2:
+        age: 40
+        employment_income: 250_000
+        employer_headcount: 15
+    households:
+      household:
+        members: [person1, person2]
+        state_code: MD
+  output:
+    # person1's employer is below 15; person2's pays 192,300 * 0.45% = 865.35.
+    md_employer_famli_contribution: [0, 865.35]
diff --git a/policyengine_us/tests/policy/baseline/gov/states/md/tax/payroll/famli/md_famli_taxable_wages.yaml b/policyengine_us/tests/policy/baseline/gov/states/md/tax/payroll/famli/md_famli_taxable_wages.yaml
new file mode 100644
index 00000000000..0f505fe56cd
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/md/tax/payroll/famli/md_famli_taxable_wages.yaml
@@ -0,0 +1,129 @@
+# Md. Code, Lab. & Empl. s. 8.3-601(a)(1)(ii)2 applies the contribution rate to
+# wages up to the Social Security wage base, and COMAR 09.42.02.01B(2) takes
+# that base from the Federal Insurance Contributions Act maximum for the year:
+# $184,500 in 2026 and $192,300 in 2027. Section 8.3-101(r) takes wages from the
+# unemployment insurance definition in s. 8-101(aa). COMAR 09.32.01.14A(2)(a)
+# leaves out deferred compensation only when it is not deducted from salary, and
+# Maryland Labor's employer guide excludes cafeteria plan salary reductions and
+# includes 401(k) deferrals.
+
+- name: Case 1, wages below the wage base are all taxable.
+  period: 2027
+  input:
+    employment_income: 50_000
+    state_code: MD
+  output:
+    md_famli_taxable_wages: 50_000
+
+- name: Case 2, wages exactly at the 2027 wage base are all taxable.
+  period: 2027
+  input:
+    employment_income: 192_300
+    state_code: MD
+  output:
+    md_famli_taxable_wages: 192_300
+
+- name: Case 3, wages one dollar above the 2027 wage base stop at the base.
+  period: 2027
+  input:
+    employment_income: 192_301
+    state_code: MD
+  output:
+    md_famli_taxable_wages: 192_300
+
+- name: Case 4, wages well above the 2027 wage base stop at the base.
+  period: 2027
+  input:
+    employment_income: 250_000
+    state_code: MD
+  output:
+    md_famli_taxable_wages: 192_300
+
+- name: Case 5, the wage base is the one for the year the wages are paid.
+  period: 2026
+  input:
+    employment_income: 250_000
+    state_code: MD
+  output:
+    md_famli_taxable_wages: 184_500
+
+- name: Case 6, cafeteria plan and dependent care amounts come out, and 401(k) deferrals stay in.
+  period: 2027
+  input:
+    employment_income: 60_000
+    pre_tax_health_insurance_premiums: 5_000
+    health_savings_account_payroll_contributions: 1_000
+    dependent_care_employer_benefits: 2_000
+    traditional_401k_contributions: 4_000
+    state_code: MD
+  output:
+    # 60,000 - 5,000 - 1,000 - 2,000 = 52,000. The 4,000 deferral stays in.
+    md_famli_taxable_wages: 52_000
+
+- name: Case 7, the cap applies after the pre-tax amounts come out.
+  period: 2027
+  input:
+    employment_income: 195_000
+    pre_tax_health_insurance_premiums: 5_000
+    state_code: MD
+  output:
+    # 195,000 - 5,000 = 190,000, below the 192,300 base.
+    md_famli_taxable_wages: 190_000
+
+- name: Case 8, tips within employment income count as wages.
+  period: 2027
+  input:
+    employment_income: 50_000
+    tip_income: 5_000
+    state_code: MD
+  output:
+    md_famli_taxable_wages: 50_000
+
+- name: Case 9, self-employment income is not wages.
+  period: 2027
+  input:
+    self_employment_income: 100_000
+    state_code: MD
+  output:
+    md_famli_taxable_wages: 0
+
+- name: Case 10, no wages.
+  period: 2027
+  input:
+    employment_income: 0
+    state_code: MD
+  output:
+    md_famli_taxable_wages: 0
+
+- name: Case 11, a household outside Maryland has no Maryland taxable wages.
+  period: 2027
+  input:
+    employment_income: 50_000
+    state_code: VA
+  output:
+    md_famli_taxable_wages: 0
+
+- name: Case 12, the employer-level base is the employer's Social Security taxable earnings.
+  period: 2027
+  input:
+    employer_total_taxable_earnings_for_social_security: 1_000_000
+    state_code: MD
+  output:
+    employer_total_md_famli_taxable_wages: 1_000_000
+
+- name: Case 13, the employer-level base is zero outside Maryland.
+  period: 2027
+  input:
+    employer_total_taxable_earnings_for_social_security: 1_000_000
+    state_code: VA
+  output:
+    employer_total_md_famli_taxable_wages: 0
+
+- name: Case 14, a 401(k) deferral taken from salary stays in taxable wages.
+  period: 2027
+  input:
+    employment_income: 60_000
+    traditional_401k_contributions: 4_000
+    state_code: MD
+  output:
+    md_famli_taxable_wages: 60_000
diff --git a/policyengine_us/variables/gov/states/md/tax/payroll/famli/md_employee_famli_contribution.py b/policyengine_us/variables/gov/states/md/tax/payroll/famli/md_employee_famli_contribution.py
new file mode 100644
index 00000000000..c65629245ea
--- /dev/null
+++ b/policyengine_us/variables/gov/states/md/tax/payroll/famli/md_employee_famli_contribution.py
@@ -0,0 +1,25 @@
+from policyengine_us.model_api import *
+
+
+class md_employee_famli_contribution(Variable):
+    value_type = float
+    entity = Person
+    label = "Maryland employee FAMLI contribution"
+    documentation = (
+        "Employee-side Maryland Family and Medical Leave Insurance "
+        "contribution. The employer must deduct the employee share unless it "
+        "elects to pay some or all of it (Md. Code, Lab. & Empl. s. "
+        "8.3-601(e)(2)); this assumes the employer deducts the full share."
+    )
+    definition_period = YEAR
+    unit = USD
+    defined_for = StateCode.MD
+    reference = (
+        "https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=8.3-601&enactments=false",
+        "https://regs.maryland.gov/us/md/exec/comar/09.42.02.05",
+    )
+
+    def formula(person, period, parameters):
+        p = parameters(period).gov.states.md.tax.payroll.famli
+        taxable_wages = person("md_famli_taxable_wages", period)
+        return p.total_rate * p.employee_share * taxable_wages
diff --git a/policyengine_us/variables/gov/states/md/tax/payroll/famli/md_employer_famli_contribution.py b/policyengine_us/variables/gov/states/md/tax/payroll/famli/md_employer_famli_contribution.py
new file mode 100644
index 00000000000..0e89e27fed9
--- /dev/null
+++ b/policyengine_us/variables/gov/states/md/tax/payroll/famli/md_employer_famli_contribution.py
@@ -0,0 +1,28 @@
+from policyengine_us.model_api import *
+
+
+class md_employer_famli_contribution(Variable):
+    value_type = float
+    entity = Person
+    label = "Maryland employer FAMLI contribution"
+    documentation = (
+        "Employer-side Maryland Family and Medical Leave Insurance "
+        "contribution, owed only by employers of 15 or more employees. This "
+        "uses one annual employer_headcount for the size test, which Maryland "
+        "applies quarterly in 2027 and from an annual average after that "
+        "(COMAR 09.42.02.06), and it assumes the employer pays only its own "
+        "share."
+    )
+    definition_period = YEAR
+    unit = USD
+    defined_for = StateCode.MD
+    reference = (
+        "https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=8.3-601&enactments=false",
+        "https://regs.maryland.gov/us/md/exec/comar/09.42.02.06",
+    )
+
+    def formula(person, period, parameters):
+        p = parameters(period).gov.states.md.tax.payroll.famli
+        liable = person("employer_headcount", period) >= p.employer_headcount_threshold
+        taxable_wages = person("md_famli_taxable_wages", period)
+        return where(liable, p.total_rate * (1 - p.employee_share) * taxable_wages, 0)
diff --git a/policyengine_us/variables/gov/states/md/tax/payroll/famli/md_famli_taxable_wages.py b/policyengine_us/variables/gov/states/md/tax/payroll/famli/md_famli_taxable_wages.py
new file mode 100644
index 00000000000..833ff13052f
--- /dev/null
+++ b/policyengine_us/variables/gov/states/md/tax/payroll/famli/md_famli_taxable_wages.py
@@ -0,0 +1,50 @@
+from policyengine_us.model_api import *
+
+
+class md_famli_taxable_wages(Variable):
+    value_type = float
+    entity = Person
+    label = "Maryland FAMLI taxable wages"
+    documentation = (
+        "Wages subject to Maryland Family and Medical Leave Insurance "
+        "contributions: Maryland unemployment insurance wages, capped at the "
+        "Social Security wage base. Those wages include 401(k) deferrals and "
+        "exclude cafeteria plan and dependent care benefits, as "
+        "payroll_tax_gross_wages does. Household state proxies work state, "
+        "and one person's wages proxy the cap that applies separately to each "
+        "job."
+    )
+    definition_period = YEAR
+    unit = USD
+    defined_for = StateCode.MD
+    reference = (
+        "https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=8.3-601&enactments=false",
+        "https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=8.3-101&enactments=false",
+        "https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=8-101&enactments=false",
+        "https://regs.maryland.gov/us/md/exec/comar/09.42.02.04",
+        "https://regs.maryland.gov/us/md/exec/comar/09.32.01.14",
+        "https://labor.maryland.gov/employment/empguide/empguide.pdf#page=19",
+    )
+
+    def formula(person, period, parameters):
+        return min_(
+            person("payroll_tax_gross_wages", period),
+            parameters(period).gov.irs.payroll.social_security.cap,
+        )
+
+
+class employer_total_md_famli_taxable_wages(Variable):
+    value_type = float
+    entity = Person
+    label = "Employer total Maryland FAMLI taxable wages"
+    documentation = (
+        "Aggregate employer wages subject to Maryland Family and Medical "
+        "Leave Insurance contributions for employer-only payroll tax "
+        "calculations."
+    )
+    definition_period = YEAR
+    unit = USD
+    defined_for = StateCode.MD
+
+    def formula(person, period, parameters):
+        return person("employer_total_taxable_earnings_for_social_security", period)
diff --git a/policyengine_us/variables/gov/states/md/tax/payroll/md_employee_state_payroll_tax.py b/policyengine_us/variables/gov/states/md/tax/payroll/md_employee_state_payroll_tax.py
new file mode 100644
index 00000000000..dd7fa0212ff
--- /dev/null
+++ b/policyengine_us/variables/gov/states/md/tax/payroll/md_employee_state_payroll_tax.py
@@ -0,0 +1,14 @@
+from policyengine_us.model_api import *
+
+
+class md_employee_state_payroll_tax(Variable):
+    value_type = float
+    entity = Person
+    label = "Maryland employee state payroll tax"
+    documentation = (
+        "Employee-side Maryland Family and Medical Leave Insurance contributions."
+    )
+    definition_period = YEAR
+    unit = USD
+    defined_for = StateCode.MD
+    adds = ["md_employee_famli_contribution"]
diff --git a/policyengine_us/variables/gov/states/md/tax/payroll/md_employer_additional_state_payroll_tax.py b/policyengine_us/variables/gov/states/md/tax/payroll/md_employer_additional_state_payroll_tax.py
new file mode 100644
index 00000000000..2a259ee37c9
--- /dev/null
+++ b/policyengine_us/variables/gov/states/md/tax/payroll/md_employer_additional_state_payroll_tax.py
@@ -0,0 +1,14 @@
+from policyengine_us.model_api import *
+
+
+class md_employer_additional_state_payroll_tax(Variable):
+    value_type = float
+    entity = Person
+    label = "Maryland employer additional state payroll tax"
+    documentation = (
+        "Employer-side Maryland Family and Medical Leave Insurance contributions."
+    )
+    definition_period = YEAR
+    unit = USD
+    defined_for = StateCode.MD
+    adds = ["md_employer_famli_contribution"]
diff --git a/policyengine_us/variables/gov/states/tax/payroll/employee_state_payroll_tax.py b/policyengine_us/variables/gov/states/tax/payroll/employee_state_payroll_tax.py
index 7956a031799..a30418d8506 100644
--- a/policyengine_us/variables/gov/states/tax/payroll/employee_state_payroll_tax.py
+++ b/policyengine_us/variables/gov/states/tax/payroll/employee_state_payroll_tax.py
@@ -6,6 +6,7 @@
     "ct_employee_state_payroll_tax",
     "de_employee_state_payroll_tax",
     "ma_employee_state_payroll_tax",
+    "md_employee_state_payroll_tax",
     "me_employee_state_payroll_tax",
     "mn_employee_state_payroll_tax",
     "nj_employee_state_payroll_tax",
diff --git a/policyengine_us/variables/gov/states/tax/payroll/employer_additional_state_payroll_tax.py b/policyengine_us/variables/gov/states/tax/payroll/employer_additional_state_payroll_tax.py
index 0f81b0058e2..6f750cc98fd 100644
--- a/policyengine_us/variables/gov/states/tax/payroll/employer_additional_state_payroll_tax.py
+++ b/policyengine_us/variables/gov/states/tax/payroll/employer_additional_state_payroll_tax.py
@@ -6,6 +6,7 @@
     "dc_employer_additional_state_payroll_tax",
     "de_employer_additional_state_payroll_tax",
     "ma_employer_additional_state_payroll_tax",
+    "md_employer_additional_state_payroll_tax",
     "me_employer_additional_state_payroll_tax",
     "or_employer_additional_state_payroll_tax",
     "ri_employer_additional_state_payroll_tax",
diff --git a/policyengine_us/variables/gov/states/tax/payroll/employer_total_additional_state_payroll_tax.py b/policyengine_us/variables/gov/states/tax/payroll/employer_total_additional_state_payroll_tax.py
index 13102382f5a..4feeb9114e1 100644
--- a/policyengine_us/variables/gov/states/tax/payroll/employer_total_additional_state_payroll_tax.py
+++ b/policyengine_us/variables/gov/states/tax/payroll/employer_total_additional_state_payroll_tax.py
@@ -66,6 +66,15 @@ def formula(person, period, parameters):
             0,
         )
 
+        md_p = parameters(period).gov.states.md.tax.payroll.famli
+        md = where(
+            headcount >= md_p.employer_headcount_threshold,
+            md_p.total_rate
+            * (1 - md_p.employee_share)
+            * person("employer_total_md_famli_taxable_wages", period),
+            0,
+        )
+
         me_p = parameters(period).gov.states.me.tax.payroll.paid_leave
         me = where(
             headcount >= me_p.employer_headcount_threshold,
@@ -111,12 +120,13 @@ def formula(person, period, parameters):
                 state_code == StateCode.DC,
                 state_code == StateCode.DE,
                 state_code == StateCode.MA,
+                state_code == StateCode.MD,
                 state_code == StateCode.ME,
                 state_code == StateCode.OR,
                 state_code == StateCode.RI,
                 state_code == StateCode.VT,
                 state_code == StateCode.WA,
             ],
-            [ca, co, dc, de, ma, me, or_tax, ri, vt, wa],
+            [ca, co, dc, de, ma, md, me, or_tax, ri, vt, wa],
             default=0,
         )
diff --git a/source_conflicts/candidates.yaml b/source_conflicts/candidates.yaml
index 6025a2b3e21..8069d440381 100644
--- a/source_conflicts/candidates.yaml
+++ b/source_conflicts/candidates.yaml
@@ -4649,6 +4649,41 @@ candidates:
   state: ruled
   note: 'Ruled statute-first in October 2026; verify whether the chart''s zero column applies to dependent exemptions
     or only the filer''s own exemption. Code not yet on main: md_personal_exemptions_count.'
+- id: us-md:famli-wages-401k-deferrals
+  program: md-famli
+  years:
+    from: 2027
+    type: calendar
+  question: Do an employee's elective 401(k) deferrals count as wages for Maryland Family and Medical Leave Insurance
+    contributions?
+  sources:
+  - kind: statute
+    citation: Md. Code, Lab. & Empl. s. 8-101(aa)(1), (aa)(3)(iv)1, adopted by s. 8.3-101(r)
+    url: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=8-101&enactments=false
+  - kind: regulation
+    citation: COMAR 09.32.01.14A(2)(a)
+    url: https://regs.maryland.gov/us/md/exec/comar/09.32.01.14
+  - kind: guidance
+    citation: Maryland Labor, Employer's Quick Reference Guide, Taxable Contributions under IRS Section 125 Cafeteria
+      Plans and 401K plans
+    url: https://labor.maryland.gov/employment/empguide/empguide.pdf#page=19
+  readings:
+    statute: A deferral the employer pays into a qualified trust on the employee's behalf is a payment to such a trust,
+      so it falls outside wages.
+    other: A deferral taken from salary stays in wages. The regulation leaves out only deferred compensation not deducted
+      from salary, and the guide calls elective 401(k) deferrals taxable.
+  example: $60,000 of salary with a $4,000 deferral gives a $270 employee contribution under the regulation and guide,
+    versus $252 if the deferral comes out.
+  pe_us:
+    follows: gap-fill
+    code:
+    - policyengine_us/variables/gov/states/md/tax/payroll/famli/md_famli_taxable_wages.py
+    prs:
+    - https://github.com/PolicyEngine/policyengine-us/pull/10674
+  state: ruled
+  note: The statute does not separate employer contributions from salary reductions, and the code follows the regulation
+    and the agency's guide, under the regulations-are-law and agency-breaks-ties principles. Short excerpts of all three
+    texts are in source_conflicts/sources/us-md/.
 - id: us-md:meap-garrett-oil-level-four
   program: liheap
   years:
diff --git a/source_conflicts/sources/us-md/comar-09-32-01-14-excerpt.txt b/source_conflicts/sources/us-md/comar-09-32-01-14-excerpt.txt
new file mode 100644
index 00000000000..933735f9238
--- /dev/null
+++ b/source_conflicts/sources/us-md/comar-09-32-01-14-excerpt.txt
@@ -0,0 +1,4 @@
+Source: https://regs.maryland.gov/us/md/exec/comar/09.32.01.14
+Short excerpt of COMAR 09.32.01.14A(2)(a), copied from the official HTML page.
+
+Into a deferred compensation plan that are not deducted from an employee's salary
diff --git a/source_conflicts/sources/us-md/gle-8-101-aa-3-iv-excerpt.txt b/source_conflicts/sources/us-md/gle-8-101-aa-3-iv-excerpt.txt
new file mode 100644
index 00000000000..559d7709e6b
--- /dev/null
+++ b/source_conflicts/sources/us-md/gle-8-101-aa-3-iv-excerpt.txt
@@ -0,0 +1,5 @@
+Source: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=8-101&enactments=false
+Short excerpts of s. 8-101(aa)(3)(iv) and item 1 of it, copied from the official HTML page.
+
+any payment made to or on behalf of an employee
+from or to a trust exempt from tax under § 401(a)
diff --git a/source_conflicts/sources/us-md/ui-employer-guide-p19-excerpt.txt b/source_conflicts/sources/us-md/ui-employer-guide-p19-excerpt.txt
new file mode 100644
index 00000000000..040f06914c9
--- /dev/null
+++ b/source_conflicts/sources/us-md/ui-employer-guide-p19-excerpt.txt
@@ -0,0 +1,4 @@
+Source: https://labor.maryland.gov/employment/empguide/empguide.pdf#page=19
+Short excerpt of page 19, text extracted with pdftotext (poppler).
+
+Elective employee contributions and deferrals under IRS section 401k plans are taxable.