Ultimate Maryland Sales Tax Guide

Maryland may have a single sales tax rate, but understanding the state's exemption rules and deadlines can be more complicated than you think.

In this Maryland sales tax guide, we’ll address the most critical questions, such as how to collect sales tax and if services are taxable in the state.

We'll also introduce you to a trusted solution to ensure sales tax compliance throughout your sales tax cycle.

Maryland Sales Tax Rate Range 2025

Maryland has a uniform state sales tax rate of 6%. This means that no local sales tax is applied to a taxable sale, in contrast to states like Missouri, where additional local taxes are imposed.

But if you need to calculate tax rates for other states, just use our sales tax calculation service.

Select your city here for a full overview of your city’s sales tax rates.

Collecting Maryland Sales Tax from Customers

Let’s explore how you can collect Maryland sales tax.

Do I Have to Collect Maryland Sales Tax from Customers?

If you’re a retailer in Maryland and meet the following conditions, you’re liable to collect sales tax on sales revenue from your customers:

• You have sales tax nexus in Maryland.
• You sell taxable products or services in Maryland.

What Creates a Sales Tax Nexus in Maryland?

The following factors can create a sales tax nexus in Maryland:

• Economic Nexus: Out-of-state businesses with gross revenue exceeding $100,000 or with 200 or more transactions in the state. 
• Physical Location: Businesses with a temporary or permanent office, sample room, distribution center, storage,  warehouse, or other place to sell taxable goods and services in Maryland.
• Employees: Businesses with an agent, representative, solicitor, or salesman in the state for the purpose of delivering, selling, or taking orders for tangible personal property or a taxable service. 
• Services: Businesses that enter the state on a regular basis to provide services or repairs for tangible personal property.  
• Delivery: Businesses that use company vehicles regularly to sell or deliver tangible personal property or a taxable service for use in the State.  
• Trade shows: Businesses participating in a one-time event or craft show involving the retail sale of tangible personal property in Maryland may not need to register with Maryland. However, you must apply for a Temporary Sales & Use Tax License.

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.

Taxable Products in Maryland

In Maryland, most tangible personal property, such as digital products and clothes, is usually subject to sales tax.

Although groceries and food consumed off-premises are exempt from sales tax, prepared food made to be consumed on the premises or packaged for carry-out has a 6% state tax. 

Additionally, unlike most taxable goods and services, the sales and use tax for alcoholic beverages is 9% in the state.

Here’s a run-down of how products are taxed in Maryland: 

Are Groceries Taxable in Maryland? 

No. Grocery items are non-taxable in Maryland. 

Is Clothing Taxable in Maryland?

Yes, clothing is subject to sales tax in Maryland.

Are Digital Products Taxable in Maryland?

Yes, digital products are taxable in Maryland.

Is Software-as-a-Service (SaaS) Taxable in Maryland?

SaaS is taxable when used for personal purposes, but it's non-taxable when used for commercial or business purposes in an enterprise computer system.

Are Services Taxable in Maryland?

Most services are generally non-taxable according to Maryland law. However, there are some taxable services, including:

• Cleaning and janitorial services (of commercial or industrial buildings)
• Credit reporting
• Dry cleaning
• Printing services
• Security services

Tax-exempt Items

A few items that qualify for Maryland sales tax exemption are:

• Items sold for agricultural purposes, like livestock, feed, farm vehicles, and machinery.
• Taxable goods that cost less than 75 cents sold through a bulk vending machine.
• Electricity, natural gas, or steam used in residential condominiums. 
• Medicines or medical supplies, especially those sold by a physician or hospital.
• Medical devices like eyeglasses, wheelchairs, hearing aids, and more.
• Machinery used for manufacturing and research purposes.

However, you need a sales tax permit to collect sales tax. Let's explore how to get one.

How to Register for a Maryland Seller's Permit

You can register for a Maryland seller’s permit through the Comptroller of Maryland website. Other options include using an independent software provider or a professional tax preparer approved by the government. 

Explore how sales tax registration works in every US state.

Do I Need a Maryland Seller's Permit if I Only Sell Temporarily in the State?

Yes. You can request a temporary license for sales at events such as trade shows and craft fairs by calling either 410-767-1543 or 410-767-5462. However, this license is only valid for 30 days.

How to Collect Sales Tax in Maryland

Maryland has a uniform sales tax rate of 6%. So, whenever you make a taxable sale to a buyer within the state, you can just apply the 6% state sales tax rate.

Should You Collect Sales Tax on Shipping Charges in Maryland?

No. Shipping charges are not subject to sales tax in Maryland as long as they are separately stated from the price of the item(s) sold.

How to File and Pay Sales Tax in Maryland

File your Maryland sales tax returns at  the Maryland Tax Connect Portal when your sales tax filing due date approaches. 

Or,  let Zamp take care of your Maryland sales tax filing and remittance so you can avoid dealing with sales tax returns entirely! 

Learn how to file and pay sales tax in other US states here.

FAQs on Paying and Filing Maryland Sales Tax

What Is Use Tax?

If you didn't pay sales tax when purchasing tangible personal property, you need to pay Maryland use tax. 

The use tax rate for Maryland residents is 6%, the same as the sales tax rate. You can file the use tax by filling out the Consumer Use Tax Return. Any person who made a tax-free purchase in another state must file this form on the 20th of the month after the end of each quarter.

I Didn’t Collect any Maryland Sales Tax During this Period. Do I still Need to File a Return?

Yes. 

You should file a “zero” return with the state even if you didn’t collect any sales tax over the taxable period. You can do this at Maryland Tax Connect Portal or call 410-260-7225. 

What Is the Penalty for Filing and Paying Maryland Sales Tax Late?

If you submit a return late, you'll be subject to two penalty fees: 

• A 10% penalty is applied to the amount of taxes owed. 
• Interest penalty of at least 0.8339% for each month (or part of a month) that the return is late.

Do I Get a Sales Tax Discount for Timely Filing?

Yes, Maryland does offer a discount for timely filing. The discount is calculated automatically by the application using the following formula:

• If Line 16 of the Sales And Use Tax Return is $6,000 or less, you should multiply that amount by .012. 
• If the amount in Line 16 is greater than $6,000, multiply that amount by .009 and add $18.00. 

However, the discount can’t exceed $500 for each return. 

What Is Maryland’s Tax-free Week?

Maryland’s tax-free week runs from 12:01 a.m. on the second Sunday in August to midnight the following Saturday, which is from Sunday, August 10 to Saturday, August 16, 2025.

During this period, clothing and footwear priced at $100 or less are exempt from Maryland sales tax. Additionally, the first $40 of a backpack or bookbag purchase will also be tax-free.

Are Energy Star appliances Tax-exempt in Maryland?

Maryland offers a three-day tax-free weekend (from the second Saturday through Monday in February) for solar water heaters and select Energy Star products such as:

• Air conditioner
• Clothes washer or dryer
• Furnace
• Heat pump
• Standard size refrigerator
• Compact fluorescent light bulb
• Dehumidifier
• Programmable thermostat

These products should also meet or exceed the Energy Star Efficiency requirements of the U.S. Environmental Protection Agency and the U.S. Department of Energy.

Do You Have to Pay Sales Tax on Cars and Boats?

In Maryland, sales and use tax doesn't apply to cars or boats since they're already subject to titling taxes. 

Car sales are covered by the Maryland motor vehicle titling tax, managed by the Motor Vehicle Administration. Meanwhile, boat sales are subject to a boat titling tax handled by the Department of Natural Resources.

However, sales and use tax applies to car and boat rentals. For instance, short-term passenger and recreational vehicle rentals have an 11.5% sales tax, while certain short-term truck rentals have an 8% sales tax.

How Often Do I Need to File and Pay Sales Tax in Maryland?

The state assigns a filing frequency based on the sales tax collected in a calendar year. 

For instance, if a vendor has a tax liability of $15,000 or more in sales tax in a year, they must file a sales tax return every month, with the filing due on the 20th of each month. But if the collected sales tax is less than $15,000 for the year, they can file quarterly instead.

The Comptroller of Maryland can switch a taxpayer from quarterly to monthly filing. For instance, if you have a tax liability of $4,000 for more than two quarters or a higher amount in just one quarter, the Comptroller may ask you to file monthly.

In Maryland, you may be required to file and pay quarterly, monthly, bi-annually, or annually.

Can I Amend a Maryland Sales Tax Return? 

Yes. To amend a sales tax return you have already filed, email taxhelp@marylandtaxes.gov or call 410-260-7980 in Central Maryland or 1-800-MDTAXES (800-638-2937) from elsewhere.

Maryland Sales Tax Due Dates

Sales and use tax returns are due by the 20th of the month after the reporting period ends, as shown on each return. If it falls on a Saturday, Sunday, or legal holiday, the return is due on the next business day.

Monthly sales tax due dates are as follows:

Taxable Period	Filing Due Date
January 2025	February 20, 2025
February 2025	March 20, 2025
March 2025	April 21, 2025
April 2025	May 20, 2025
May 2025	June 20, 2025
June 2025	July 21, 2025
July 2025	August 20, 2025
August 2025	September 22, 2025
September 2025	October 20, 2025
October 2025	November 20, 2025
November 2025	December 22, 2025
December 2025	January 20, 2026

Maryland quarterly filing due dates:

Taxable Period	Filing Due Date
Q1 (Jan-March) 2025	April 21, 2025
Q2 (Apr-June) 2025	July 21, 2025
Q3 (July-Sept) 2025	October 20, 2025
Q4 (Oct-Dec) 2025	January 20, 2026

Let The Experts Handle Your Maryland Sales Taxes

Want to regulate your business without the hassle of sales tax?

Zamp offers a top-notch solution with simple onboarding, accurate tax calculations, and effortless one-click registrations and filings.

Get started with Zamp today for streamlined sales tax management.