The sales tax in Gaithersburg, Maryland is 6% on most purchases. Maryland sets its sales tax at the state level and doesn’t let cities or counties add their own, so the rate here is the same as everywhere else in the state. Alcohol is the one big exception, taxed at 9%. Gaithersburg also charges a separate admissions and amusement tax on entertainment, which isn’t sales tax but often gets confused for it.
Why There’s No Local Add-On
Maryland’s general sales and use tax rate is 6% of the purchase price for most taxable goods and services.1Maryland General Assembly. Maryland Code Tax-General 11-104 – Sales and Use Tax Rate That rate is uniform statewide. Maryland has never granted counties or municipalities the authority to impose their own sales tax, so nothing extra gets layered on in Gaithersburg or anywhere in Montgomery County. If you’ve shopped in states like Texas or New York where the rate changes block by block, Maryland works differently: one rate, everywhere.
Alcohol Is Taxed at 9%
Since July 1, 2011, alcoholic beverages have carried a 9% rate instead of 6%.2Comptroller of Maryland. Alcohol Sales Tax The 9% applies to the price of the alcohol itself. Separately stated charges for labor, service, or materials sold in connection with the beverage are taxed at the regular 6% rate.1Maryland General Assembly. Maryland Code Tax-General 11-104 – Sales and Use Tax Rate A bottle of wine from a Gaithersburg store gets 9% on the full price. A restaurant service charge broken out separately from the drink falls under 6%.
What Gets Taxed
Three broad categories are subject to the 6% rate: physical goods, digital products, and a specific list of services.
Most tangible items from a store are taxable: furniture, electronics, clothing, appliances. If you can pick it up and carry it out, assume it’s taxable unless an exemption applies.
Digital products became taxable in March 2021 under Senate Bill 787. The law defines a digital product as anything obtained electronically, including downloaded music, streaming video, e-books, video games, digital newspapers, and ring tones.3Maryland General Assembly. Maryland Code Tax-General 11-101 – Definitions Digital codes used to access or download these products are treated the same way. The rate is 6%.4Comptroller of Maryland. Business Tax Tip 29 – Sales of Digital Products and Digital Codes Streaming subscriptions and e-book purchases through your phone include it. Live interactive educational instruction and professional services delivered electronically are carved out.
Services are taxed more narrowly than many people expect. The taxable list includes commercial building cleaning, security and detective services, telephone answering services, credit reporting, cellular telecommunications, and custom fabrication or printing to special order.5Comptroller of Maryland. Sales and Use Tax – List of Tangible Personal Property and Services Legal, accounting, and medical services aren’t taxed. Neither are most personal services like haircuts. If a service isn’t on the enumerated list, it’s generally not taxable.
What’s Exempt
Grocery Food
Most food sold for off-premises consumption by a vendor operating a substantial grocery or market business is exempt. The exemption covers meat, eggs, dairy, produce, grains, coffee, tea, fruit juice, and condiments. But soft drinks, carbonated beverages, candy, and confectionery stay taxable even at the grocery store.6Maryland General Assembly. Maryland Code Tax-General 11-206
Prepared food is also taxable. That means heated food, ready-to-eat sandwiches, salad or soup bar items, party platters, and ice cream or frozen yogurt sold in containers smaller than one pint.6Maryland General Assembly. Maryland Code Tax-General 11-206 A hot rotisserie chicken from the deli counter gets taxed. The raw chicken in the meat aisle doesn’t. Most of the confusion at Gaithersburg checkouts happens along that line.
Medicine and Hygiene Products
Drugs and medical supplies sold to or by a physician or hospital are exempt, along with disposable medical supplies and sickroom equipment more broadly. The exemption reaches further than many shoppers realize. Oral hygiene products like toothbrushes, toothpaste, and dental floss are tax-free. So are diapers, baby wipes, baby oil, baby powder, and diaper rash cream. Feminine hygiene products, including pads, tampons, and menstrual cups, are also exempt.7Maryland General Assembly. Maryland Code Tax-General 11-211 – Medical Supplies and Drugs
Residential Energy
Electricity, natural gas, and steam delivered to your home under a residential rate schedule are exempt. The exemption also covers heating oil, propane, coal, and firewood used in residential properties of four units or fewer, plus condominiums and cooperative housing.5Comptroller of Maryland. Sales and Use Tax – List of Tangible Personal Property and Services Energy delivered under a commercial rate schedule doesn’t qualify. What matters is the rate schedule on file with the Public Service Commission.
Online and Out-of-State Purchases
Out-of-state retailers and online marketplaces have to collect Maryland’s 6% tax if, during the current or previous calendar year, they either earned more than $100,000 in gross revenue from Maryland sales or completed 200 or more separate transactions in the state.8Comptroller of Maryland. Tax Guidance – Business Taxpayers FAQs Large retailers like Amazon collect automatically, so most online purchases arrive with Maryland tax already applied.
When you buy from a smaller out-of-state seller that doesn’t collect, you owe use tax yourself. The rate matches sales tax: 6% for most items, 9% for alcohol. You get a credit for sales tax already paid to another state. If you paid 4% in Virginia on a purchase, you owe Maryland the 2% difference.9Comptroller of Maryland. Tax Guidance – Sales and Use Tax You report and pay it on the Consumer Use Tax Return filed with the Comptroller.
The Admissions and Amusement Tax Is Separate
Gaithersburg can’t impose its own sales tax, but it does collect an admissions and amusement tax on entertainment. The current rates are 10% on amusement gross receipts and 5% on rental charges like athletic equipment and ski rentals.10Maryland General Assembly. Committee Testimony – Admissions and Amusement Tax It’s authorized by state law and imposed by the county council.11American Legal Publishing. Montgomery County Code 52-16A – Admissions and Amusement Tax
This one surprises people because it doesn’t show up as “sales tax” on a receipt. Concert tickets, bowling, and admission to amusement venues in Gaithersburg all include it. It’s separate from and in addition to any sales tax that applies to food, drinks, or merchandise sold at the same venue.
Shop Maryland Tax-Free Week
Every August, Maryland runs a tax-free shopping period called Shop Maryland Tax-Free Week. It starts the second Sunday of August and runs through the following Saturday. Qualifying clothing and footwear priced at $100 or less per item are exempt from the 6% tax during that week. The first $40 of a backpack or bookbag purchase is also tax-free. Accessories like handbags and jewelry don’t qualify.12Comptroller of Maryland. Comptroller of Maryland Programs – Shop Maryland Tax-Free Week
The exemption applies per item, not per transaction, so multiple qualifying items in the same trip each get the break. The savings on any single item are modest, up to $6 on a $100 pair of shoes, but they add up over a back-to-school run.