Maryland Sales and Use Tax Guide

Founders relocating from states with layered city, county, and state sales tax rates tend to expect the same complexity in Maryland. Maryland runs a single flat statewide rate instead, with no local add-on anywhere in the state, and the simplicity is real. A few product categories still carry separate rates worth knowing before you set prices.

Disclaimer: General information only, not tax advice. Confirm current rates, thresholds, and deadlines with the Comptroller of Maryland before filing.

Key Takeaways

•        Maryland's general sales and use tax rate is a flat 6% statewide.

•        No county or city adds a local sales tax on top of the state rate anywhere in Maryland.

•        Alcoholic beverages carry a 9% rate, and short-term vehicle rentals carry separate higher rates.

•        Out-of-state and online sellers must register once they cross $100,000 in gross revenue from Maryland sales.

•        Registration runs through Maryland Tax Connect, the Comptroller's tax portal which replaced the earlier bFile system.

Maryland's Statewide Sales and Use Tax Rate

The general rate sits at a flat 6% on most taxable goods and select services sold in Maryland. The Comptroller of Maryland administers the tax, and the rate applies the same way whether you sell in Baltimore, a rural county, or online to a Maryland customer.

No Local or County Sales Tax Add-On

Many states let counties and cities stack a local sales tax on top of the state rate, which means the total a customer pays shifts depending on the exact address. Maryland skips this layer entirely. A retailer in Garrett County and a retailer in Montgomery County collect the identical 6%, which simplifies pricing and point-of-sale setup for anyone operating across multiple Maryland locations.

Special Rates for Specific Categories

A handful of categories carry rates above the general 6%. Alcoholic beverages are taxed at 9%. Short-term rentals of passenger cars and recreational vehicles carry a rate of 11.5%, while short-term truck rentals fall under an 8% rate. Confirm current rates for any specialty category directly on the Comptroller's site before you build them into pricing or point-of-sale software.

Who Needs to Register

Any business with a physical presence in Maryland selling taxable goods or services generally needs to register, regardless of size. Out-of-state and online sellers also need to register once they cross Maryland's economic nexus threshold, covered in detail below. Wholesalers selling exclusively for resale still register, even though most of their sales end up exempt through a valid resale certificate.

How to Register Through Maryland Tax Connect

PLACEHOLDER_A You need your EIN before registering, so complete formation with SDAT and your IRS EIN application first. Full sequencing detail is in How to Get an EIN for Your Maryland Business.

Filing Frequency and Deadlines

The Comptroller assigns a filing frequency, monthly, quarterly, or annually, based on the volume of tax a business collects. Higher-volume sellers generally file on a shorter cycle. Confirm your assigned frequency and exact due dates through your Maryland Tax Connect account, since the schedule depends on your specific filing history.

Sales Tax for Online and Out-of-State Sellers

Out-of-state and online sellers create economic nexus in Maryland once gross revenue from Maryland sales crosses $100,000 in the current or prior calendar year. Maryland eliminated its separate transaction-count threshold in 2024, so revenue is now the only figure which determines registration. Once a seller crosses the threshold, the obligation to register and collect tax generally begins the following month. Marketplace facilitators, such as large online marketplaces, collect and remit tax on behalf of individual sellers in many cases, though sellers should confirm their specific obligations rather than assume full coverage.

Common Exemptions

Common exemptions include certain groceries, prescription drugs, and sales made for resale with a valid resale certificate on file. Manufacturing equipment and select agricultural purchases may also qualify for exemption under specific rules. Exemption categories carry detailed conditions, so confirm eligibility on the Comptroller's site rather than assuming a purchase qualifies.

Common Mistakes

•        Assuming a county or city sales tax add-on exists in Maryland, the way it does in many other states.

•        Failing to register before making a taxable sale.

•        Applying the general 6% rate to alcohol or short-term vehicle rentals, which carry different rates entirely.

•        Assuming a marketplace facilitator automatically covers every seller's tax obligation.

•        Missing the switch to a revenue-only economic nexus threshold after Maryland dropped the transaction-count test.

FAQ

What is the sales tax rate in Maryland?

The general rate is a flat 6% statewide, with higher rates for alcohol and short-term vehicle rentals.

Does Maryland have local sales tax on top of the state rate?

No. Maryland applies one statewide rate with no county or city add-on.

Do online sellers need to collect Maryland sales tax?

Yes, once gross revenue from Maryland sales crosses $100,000 in the current or prior calendar year, or if the seller has a physical presence in the state.

How do I register for a Maryland sales and use tax license?

Register through Maryland Tax Connect using your EIN, after completing SDAT formation if you operate as an LLC or corporation.

Are services taxable in Maryland?

Some services are taxable and many are not. Confirm the taxability of your specific service category on the Comptroller's site before pricing.

Takeaway

Maryland keeps its sales tax structure simpler than many states, one flat rate, no local add-on, with a short list of category-specific exceptions. Register before your first taxable sale, confirm your filing frequency, and watch the $100,000 economic nexus threshold if you sell from outside the state. For the step which usually comes right before tax registration, see How to Get an EIN for Your Maryland Business.

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