Total Range for 2025
| Base state sales tax rate | 6% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Local rate range | 0% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Total rate range | 6% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Economic sales nexus threshold | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | |
| Transactions threshold | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Sales tax return filing due date | 20th of following month | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
The base state sales tax rate in Maryland is 6% and since there is no local rate range the total sales tax range is just 6%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Example of using the sales tax rate in a tax calculation:
- Buying a $60 jacket in Maryland with a 6% sales tax adds ($60 x 6%) = $3.60 in tax.
- You’d pay $60 + $3.60 = $63.60 total.
Nexus: Why may you need to collect sales tax in Maryland?
If you’re selling goods and services in Maryland then sales tax might apply! To determine your obligation, you need to understand “nexus,” which ties businesses to states for tax purposes.
Two types of nexus exist:
- Physical Nexus: Having a physical presence, like an office, warehouse, or employees in Maryland, triggers this type. If you do, you likely need to collect sales tax.
- Economic Nexus: This kicks in when your sales within Wyoming exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.
In Maryland, there is also a transaction threshold of 200, which means that even if your sales aren’t over $100,000 if you’ve sold more than 200 items then you still need to pay sales tax.
Services
Generally, services are not taxable in Maryland. Exceptions exist for specific services, such as:
- Telecommunication services (phone, cable)
- Custom software development or installation
- Repair and maintenance of tangible personal property
Goods
Generally, sales of tangible personal property are taxable in Maryland. Exceptions include:
- Prepared food purchased from grocery stores
- Prescription drugs and medical devices
- Cars and boats (subject to titling tax)
- Sales under $1,000 by occasional sellers (not selling through dealers)
Freight/Shipping
- Shipping and freight charges are generally taxable if they are part of the sale of a taxable good.
- If the shipping is separately charged for a non-taxable good (e.g., groceries), it might not be taxable.
Clothing
- Clothing is subject to sales tax
Electronics
- Electronics are taxable in Maryland
SaaS
- As of July 1, 2022, SaaS is not taxable when used for business purposes but SaaS for personal use is taxed,
Digital Products
- As of March 2021, all digital products and digital codes are taxable
Software
- Sales of pre-written software are generally not taxable.
- Custom software development or installation might be taxable.
How to register for sales tax in Maryland
In Maryland, registering for sales tax involves obtaining a sales and use tax license. There are two main methods to do this:
- Online Combined Registration Application:
- This is the recommended method for new businesses applying for their first sales tax license.
- It acts as a one-stop shop for registering various Maryland tax accounts.
- Access the application here: [Maryland Combined Registration Application ON Maryland.gov interactive.marylandtaxes.gov]
- Paper Combined Registration Application:
- Use this method if:
- You already have an existing Maryland tax account.
- You’re requesting to add a Sales and Use Tax account to a consolidated account.
- Download the application: https://interactive.marylandtaxes.gov/webapps/comptrollercra/entrance.asp
- Mail or fax the completed application to the Comptroller of Maryland.
How to collect sales tax in Maryland
Here’s how to collect sales tax in Maryland:
- Register: Get a sales tax license (free) online or by mail.
- Charge tax: Apply the 6% sales tax at checkout.
- Keep records: Track sales and collected tax.
- File & Pay: File returns (monthly or quarterly) and pay collected tax online or by mail.
How to get a sales tax permit/license in Maryland?
After registering your business, apply for a sales tax permit with the Maryland Comptroller’s Office. This can be done online through the Comptroller’s Online Services at Comptroller of Maryland. Complete the online application by providing information about your business activities and estimated sales.
When are Maryland’s sales tax returns due?
The filing frequency depends on your annual sales tax liability:
- Over $15,000 annually: File monthly (due by the 20th of the month).
- Under $15,000 annually: File quarterly (due by the 20th of the month following the quarter).
Is anyone exempt from sales tax in Maryland?
In Maryland, certain people and organizations are exempt from paying sales tax on their purchases. Here’s a breakdown:
- Non-Profits and Qualifying Organizations:
- Non-profit charitable, educational, and religious organizations can obtain a sales tax exemption certificate from the Comptroller’s Office. This allows them to purchase specific goods without paying sales tax.
- Examples include volunteer fire companies, volunteer ambulance or rescue squads, and qualifying veterans organizations.
- Government Agencies: All levels of government (federal, state, and local) are exempt from paying sales tax.
- Credit Unions: Federally chartered credit unions are exempt from paying sales tax on their purchases.
In Maryland, several products and services are exempt from sales tax. Key exemptions include:
- Certain Goods:
- Most food items purchased for home consumption are exempt, though prepared foods and certain beverages are taxable.
- Prescription medications and specific medical devices are exempt from sales tax.
- Manufacturing and Industrial Equipment:
- Equipment and machinery used in manufacturing and industrial processes may be exempt.
- Certain Services:
- Services such as professional services (e.g., legal, medical) are generally not subject to sales tax.
Do I Have to Collect Sales Tax from Maryland Customers if I Sell on Amazon, Walmart, Ebay, or Etsy?
No.
Maryland has a marketplace facilitator law. This means that marketplaces like Amazon or Etsy should collect sales tax on behalf of third-party sellers on their platforms.
But if you have a sales tax nexus in Maryland, you still need to collect sales tax on your other non-marketplace Maryland sales.
