How to File Sales Tax in Maryland

Step by step process for filing sales tax returns in Maryland

You file Maryland sales tax returns online through Maryland Tax Connect, the Comptroller's online filing portal. It replaced bFile for sales and use tax returns in January 2024.

Here's how to file, step by step:

Step 1: Register for a sales and use tax account

Before you can file, you need a Maryland sales and use tax license. In the Quick Links box on the Maryland Tax Connect homepage, select Register for a Maryland Business Tax Account-Combined Registration Application. This opens the Combined Registration Application (CRA).

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Select Sales and Use Tax as the tax account type and enter your business's NAICS code. You don't need a Maryland Tax Connect profile to apply, but you'll want one to file and manage your account.

Step 2: Sign in to Maryland Tax Connect

If you're new to Maryland Tax Connect, select Sign Up under the sign-in box on the homepage to create a profile. Then sign in with your user ID and password.

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Each time you sign in, Maryland Tax Connect emails you a one-time verification code. Enter it and select Verify. You can check the box to have it remember your browser for 90 days.

You can also file without a profile. Select File a Form As a Guest from the Businesses box on the homepage, accept the terms of use, and enter your contact details and your business's tax information so the Comptroller can verify the account.

Step 3: Start your sales and use tax return

From your Tax Accounts page, select File and Pay from the menu bar, then File a Form.

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Select your sales and use tax account, the form type, the return type, and the filing period, then select Next. Review the form header to confirm your business and return details, and select Next again.

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Step 4: Enter your sales

Start with your gross sales: the total of all your taxable and nontaxable direct sales, in whole dollars. Don't include the tax you collected.

Then enter your taxable sales on the line for each rate that applies. For most online sellers, that means:

• 6% taxable sales: goods and taxable services at the general 6% rate. Leave out digital products, which have their own line.
• 6% digital products: digital products and digital codes, including SaaS sales in Maryland that isn't bought for use in an enterprise computer system.
• 3% data, IT, and software publishing services: certain data services, information technology services, and software publishing services, including SaaS bought for commercial use in an enterprise computer system.

For each line, also enter the tax you collected or should have collected, minus any tax you refunded on canceled sales. Select Validate to have the return calculate your totals. The Instructions button explains each line.

If you file and pay on time, the return also calculates a timely discount, capped at $500 per return.

Step 5: Review and submit your return

Review the Summary page. Select Back to make changes, or Print to save a PDF copy of the return for your records.

On the signature page, select Yes to submit the return. Maryland Tax Connect then shows a confirmation number that starts with "FR." Keep it for your records. You'll also get a confirmation email.

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Step 6: Pay the tax due

From the confirmation page, select Make a Payment Now. Review the payment amount, enter your bank details for an ACH direct debit, choose the payment date, and authorize the withdrawal. Then select Confirm.

If you file as a guest, make your payment before you log out. Guest filers can't return to the confirmation page later.

Sales tax rates in Maryland

Maryland doesn't have local sales taxes, so the same rates apply everywhere in the state. The general rate is 6%. Certain data, IT, and software publishing services are taxed at 3%, and a few products, such as alcoholic beverages and cannabis, are taxed at higher rates.

FAQs

What is the frequency of sales tax filing in Maryland?

New businesses start out filing quarterly. The Comptroller’s Office may then change your filing frequency to monthly, quarterly, semiannual, or annual based on your tax payments, and will notify you before it does.

Can I file my Maryland sales tax return by mail?

Yes. The Comptroller no longer mails paper coupon booklets automatically, but you can request them. Filing online through Maryland Tax Connect is free and faster. If you make payments of $10,000 or more, you must file and pay electronically.

What happens if I miss the sales tax filing deadline in Maryland?

If you miss the filing deadline, you may be subject to penalties and interest on the unpaid tax amount. It's important to file and pay your sales tax on time to avoid these additional charges.

Do I need to file a sales tax return in Maryland if I didn't make any sales?

Yes, even if you have an active sales tax permit in Maryland but had no sales or owe no tax, you are still required to file a return for each reporting period. In this case, you would file a "zero return."

Simplify your sales tax compliance with Numeral

Filing sales tax returns can be a time-consuming and complex process, especially for businesses operating in multiple states. Thankfully, Numeral offers concierge support that takes the hassle out of sales tax compliance.

With Numeral, you can spend less than five minutes a month on sales tax, giving you more time to focus on growing your business. Their team of experts will handle everything from monitoring your sales and registering your business in states where you have nexus to managing your tax collection settings and automating your monthly, quarterly, and annual remittances.

Numeral integrates with popular ecommerce platforms, making it easy to connect your online store and let them handle the rest. Plus, their top-notch customer service includes 24/7 live chat support, access to licensed tax experts, and comprehensive filing documentation for your review.

Say goodbye to the stress and confusion of managing sales tax on your own. Let Numeral simplify your compliance process so you can get back to what matters most – running your business.