Maryland’s sales tax rate is 6% statewide with no local tax added. There are separate rates of 9% for alcohol and 3% for qualifying data, IT and enterprise SaaS services.
Maryland has implemented a fixed sales tax of 6%, which is uniform throughout the state without any additional charges from cities or counties.
While the tax rate did not change recently, the introduction of the new tax broadened the tax base. As of July 1, 2025, the state commenced collection of a 3% tax on particular data and information technology services.
The 6% rate covers nearly everything in Maryland, with one notable exception: alcoholic beverages carry their own 9% rate.
Outside of that, there's no local taxes to track the way there is in most states, since counties and cities can't impose their own general sales tax.
Groceries and prescription drugs are broadly exempt, and clothing gets no standing exemption beyond an annual Shop Maryland Tax-Free Week. Digital products, on the other hand, have been fully taxable at 6% since 2021.
Nexus is established when there is a physical presence within Maryland or when the gross revenue exceeds $100,000 or 200 transactions delivered into the state in either the current or the previous calendar year. Maryland is one of the few states that has not abandoned the number of transactions requirement.
Registered businesses collect and file through Maryland Tax Connect, the comptroller's online portal, on a schedule assigned based on liability.
One complicated aspect of Maryland's tax picture is its treatment of software and IT services. There is a 2021 digital products tax, a new 3% rate on qualifying data and IT services, and a split between 3% and 6% rates for SaaS depending on how it's used.
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Maryland's general sales tax rate is 6% statewide, and no city or county can add its own general sales tax on top. Alcoholic beverages are the one carve-out, taxed at a separate 9% rate.
Multiply the taxable sale amount by 6% for most goods, or by 3% for qualifying data and IT services. A $100 taxable retail sale carries $6 in tax; a $100 qualifying IT service charge carries $3.
Because Maryland's rate never varies by location, sourcing rarely changes what a business actually owes. Sales are still generally treated as sourced to the buyer's location (destination-based) for recordkeeping and multistate consistency purposes, even though the rate itself doesn't change.
No. Maryland has never joined the Streamlined Sales and Use Tax Agreement, so there's no Streamlined Sales Tax Registration System shortcut available here.
Instead, you register through Maryland's portal, and out-of-state resale certificates that rely on Streamlined membership generally aren't accepted.
Nexus means you have enough connections with a state that the state can require you to collect sales tax on its behalf.
Before 2018, states couldn’t require out-of-state sellers to charge the state sales tax on online purchases. In South Dakota v. Wayfair, Inc., the U.S. Supreme Court overturned that precedent, and states with a sales tax began setting nexus thresholds.
Physical and economic nexus matter most for most businesses selling into Maryland.
States each have their own nexus threshold, but generally, a business has physical nexus if it has a physical presence in the state, such as an office, warehouse, employees, or inventory.
Economic nexus means an out-of-state business meets the dollar or transaction limit, or both, required for charging sales tax to customers in that state.
Maryland recognizes physical and economic nexus, and unlike a growing number of states, still applies both the dollar and transaction-count prongs of its economic test.
If you’re looking for help with this, check out Numeral’s free nexus monitoring, which tracks sales against Maryland thresholds automatically.
Maryland’s economic nexus threshold is more than $100,000 in gross revenue or 200 or more separate transactions delivered into Maryland, in the current or previous calendar year, whichever comes first. Unlike states that have dropped the transaction-count test, Maryland still uses both measurements.
The calculation includes taxable, exempt, and wholesale sales alike, along with sales made through a marketplace facilitator. Once a seller crosses either threshold, it must register and begin collecting right away.
Most tangible personal property is taxable at 6%. Groceries and prescription drugs are broadly exempt, but Maryland's treatment of software, digital products, and IT services is more complicated.
Maryland significantly widened its taxable service base effective July 1, 2025. Sales of certain data services, IT services, and software publishing services, classified under NAICS sectors 518 and 519 and subsectors 5132 and 5415, are now subject to a separate 3% sales and use tax rather than the standard 6% rate.
That reach covers categories like computing infrastructure, data processing, web hosting, computer systems design, and software publishing. Specific exemptions apply, so it’s best to check the comptroller's Technical Bulletin 56 directly rather than working from a general summary of the rule.
Maryland's SaaS taxability rules depend on who uses the product and how. Software or SaaS purchased for individual or noncommercial use is generally taxable at 6% as a digital product.
SaaS bought solely for use in an enterprise computer system is taxed at 3% instead, under the same 2025 law that covers certain data and IT services. Because one product can fall under either rate, sellers need to look at how each customer will use it, not just what it is.
Maryland has taxed digital products and digital codes at the standard 6% rate since March 14, 2021. That was more than four years before the 3% rate on data and IT services began on July 1, 2025.
Since the two taxes come from different laws and carry different rates, digital products, SaaS and software, and IT services follow three separate rules rather than one.
Maryland doesn't mandate a specific resale certificate form. A signed statement that the purchase is for resale, along with the buyer's name, address, and eight-digit Maryland sales and use tax registration number, is generally sufficient, and the Comptroller's Office provides a suggested blanket resale certificate for that purpose.
A blanket certificate on file with a vendor can cover repeat purchases without a new certificate for every transaction. Since Maryland isn't a Streamlined member, though, sellers generally shouldn't expect Maryland vendors to accept the Streamlined Sales Tax Certificate of Exemption.
Out-of-state buyers generally need a Maryland registration number. Maryland accepts another state's registration number only for antiques and used collectibles.
Businesses register for a Maryland sales and use tax license through Maryland Tax Connect, the comptroller's online portal. New businesses may also use the comptroller’s Combined Registration Application through Maryland Business Express.
Registration for the sales and use tax account is generally free.
Applicants should be prepared to provide business information such as the legal business name, entity type, business and mailing addresses, federal employer identification number (EIN), if applicable, and details about the business activity and anticipated start of taxable sales.
A sole proprietor may instead use a Social Security number in appropriate circumstances.
The state assigns the business’s sales-tax filing frequency after registration. Maryland generally does not require renewal of the state sales and use tax license.
Remote sellers register the same way as in-state businesses, once Maryland sales, both direct and facilitated, cross the $100,000 or 200-transaction threshold. Registration and collection are required once either threshold is met.
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Once registered, the routine is straightforward for ordinary retail sales: confirm taxability, apply 6% (or 3% for qualifying IT and data services, 9% for alcohol), collect at checkout, and track it for the return.
When a marketplace facilitator collects Maryland tax on a seller's behalf, that seller generally has no separate reporting requirement for those facilitated sales. Those sales still count, though, when determining whether the seller has crossed Maryland's economic nexus threshold and needs to register and collect on its own direct sales.
In other words, marketplace sales can push a seller over the threshold even though the seller doesn't report them, which means the seller may still have to register and collect tax on its direct sales.
Separately stated charges for shipping and delivery directly to the buyer, whether by the seller or a carrier acting for the seller, aren't taxable in Maryland.
Delivery charges folded into the item price are taxed along with the sale.
The comptroller assigns a filing frequency, monthly, quarterly, semiannually, or annually, based on a business's sales tax liability. New registrants generally start by filing quarterly before the comptroller adjusts the frequency.
Returns are generally due the 20th of the month following the reporting period, moving to the next business day if the 20th falls on a weekend or holiday. Zero returns are still required even in periods with no taxable sales.
Maryland sales tax returns and payments go through Maryland Tax Connect, which has been replacing the comptroller's older bFile and iFile systems.
Numeral's step-by-step guide walks through the filing process.
Late filing and late payment penalties in Maryland can each reach up to 25% of the unpaid tax. Interest accrues daily on top of that from the original due date, at a rate the Comptroller's office sets annually. For 2025, that rate was 11.4825%.
Taxpayers generally have 30 days from the mailing date of an assessment to file an appeal or request a hearing before collection action begins.
Businesses should keep sales records, resale certificates, and filed returns on hand to support what they reported. The comptroller can audit a business to check reported sales, taxability determinations, exemptions claimed, and whether the correct amount was collected and remitted.
An audit finding can be appealed within 30 days of the notice of assessment. The Comptroller of Maryland explains the hearings and appeals process, including how to file a hearing request and what happens next.
Maryland's flat 6% rate is the easy part. The real complexity is in classifying software, digital products, and IT services correctly across three overlapping rules.
Whether simple or complex, Numeral makes it easy to stay compliant with all of Maryland’s sales tax laws.
Numeral's nexus monitoring tracks sales against both the $100,000 and 200-transaction thresholds automatically, since Maryland still uses both.
Once nexus applies, Numeral handles registration through Maryland Tax Connect, and the filing and remittance product keeps monthly, quarterly, semiannual, or annual returns on schedule. Exemption certificate management keeps resale documentation organized and ready if a Maryland audit comes around.
A U.S.-based tax expert reviews every filing before it's submitted, and all filings are backed by the Numeral Guarantee. If a filing error on Numeral's end causes penalties or interest, Numeral will cover the cost.
Get started with Numeral to put Maryland sales tax compliance on autopilot.
What is the sales tax rate in Maryland?
Maryland has a flat 6% statewide tax rate, with no county or city add-ons. Alcoholic beverages carry a separate 9% rate, and qualifying data and IT services are taxed at 3%.
What is the economic nexus threshold in Maryland?
Economic nexus is reached when a business has more than $100,000 in gross revenue or 200 separate transactions delivered into Maryland in the current or previous calendar year. Both direct and facilitated sales are counted, and either threshold alone triggers registration.
Are services taxable in Maryland?
Most services aren't, but a growing list is. Certain data services, IT services, and software publishing services are now taxable at 3% as of July 1, 2025.
Is SaaS taxable in Maryland?
It depends on use. SaaS for individual or noncommercial use is taxable at 6%, while SaaS bought solely for use in an enterprise computer system is taxed at 3%.
Are digital products taxable in Maryland?
Yes, digital products and digital codes have been taxable at 6% since March 2021, separate from the newer 3% tax on IT and data services.
Does Maryland charge sales tax on shipping and delivery?
Not when the delivery charge is separately stated. Delivery charges that are built into the item price are taxed with the sale.
Do I need a sales tax permit in Maryland?
Yes, once physical or economic nexus applies. Registration is free and happens online through Maryland Tax Connect.
Do marketplace sellers need to collect sales tax in Maryland?
Not on sales a marketplace facilitator already collects and remits on. Those sales still count toward the seller's own economic nexus threshold, even without a separate reporting requirement.
How often do businesses need to file sales tax returns in Maryland?
Monthly, quarterly, semiannually, or annually, based on the liability the comptroller assigns. Most new registrants start quarterly.
Are groceries and clothing taxable in Maryland?
Groceries for home consumption are exempt. Clothing has no standing exemption outside of the annual Shop Maryland Tax-Free Week.
For sales tax questions and audit appeals in Maryland, contact:
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