Maryland sales tax is a flat 6% state tax on most goods and a defined list of services, with a higher 9% rate on alcoholic beverages. No county or city in Maryland adds its own sales tax, so the rate is the same everywhere in the state. Groceries for home consumption and prescription drugs are exempt.
The 6% and 9% Rates
The standard rate is 6%, and it applies to every taxable transaction of $1 or more.1Maryland General Assembly. Maryland Code Tax-General 11-104 – Tax Rate For purchases under a dollar, Maryland uses a bracket schedule that starts at 1 cent on items around 20 cents and reaches 6 cents at 84 cents. Vending machine sales apply the 6% rate to 94.5% of gross receipts rather than the sticker price.
Alcoholic beverages carry a 9% rate in place of the 6%, whether you buy a bottle at a liquor store or order a drink at a restaurant.2Alcohol, Tobacco and Cannabis Commission. What Is the Sales and Use Tax Rate on Sales of Alcoholic Beverages in Maryland
Because Maryland does not authorize local sales taxes, the rate on your receipt is the full rate. That sets it apart from most states, where county or city taxes stack on top of the state figure.
What Maryland Taxes
Goods and Digital Products
Nearly all physical goods are taxable: clothing, shoes, furniture, electronics, jewelry, vehicles, artwork, and everyday accessories like handbags and belts. Maryland does not exempt general apparel the way some states do.
Digital products are taxed the same as their physical versions. Music, movies, e-books, video games, and electronically delivered newspapers or magazines are all taxable whether downloaded or streamed, and digital codes such as gift cards redeemable for downloads are taxed at the point of sale.3Comptroller of Maryland. Business Tax Tip 29 – Sales of Digital Products and Digital Code
Taxable Services
Maryland taxes a specific list of services rather than services in general. If a service is not on the list, it is generally not taxable. The list includes:
- Cleaning services, including janitorial work, floor and carpet cleaning, and commercial or industrial building cleaning
- Detective, guard, and armored car services, plus security system installation and monitoring
- Cellular phone service, “900”-type telephone services, custom calling features, telephone answering services, and prepaid calling arrangements
- Credit reporting
- Custom printing, fabrication, or production of goods by special order
- Pay-per-view television
Restaurants should also note that mandatory gratuities or service charges added for groups larger than 10 are subject to sales tax.4Comptroller of Maryland. List of Tangible Personal Property and Services Subject to Sales and Use Tax
What’s Exempt
Groceries
Food sold for consumption at home is exempt, but the line is narrower than shoppers often assume. The exemption covers staples: eggs, meat, poultry, fish, fruit, vegetables, grain, milk, coffee, tea, and condiments. Soft drinks, candy, and alcoholic beverages are always taxable.5Maryland General Assembly. Maryland Code Tax-General 11-206 – Food
Prepared food is taxable too. Heated items, sandwiches made for immediate eating, party platters, salad bar servings, and frozen desserts in containers smaller than one pint all count as food for immediate consumption. The grocery exemption also applies only at vendors that run a “substantial grocery or market business,” meaning at least 10% of their food sales come from grocery items rather than ready-to-eat food.
Medicine and Agriculture
Prescription drugs and medical devices such as wheelchairs, prosthetics, and oxygen equipment are exempt. Agricultural supplies including seeds, fertilizer, and livestock feed avoid the tax as well, along with farm vehicles and equipment used directly in farming operations.
Residential Utilities
Electricity, natural gas, and heating fuels used in a residence are generally exempt. Maryland classifies electricity and natural gas as tangible personal property for tax purposes, but fuel exemptions keep most household utility bills free of sales tax.
Shop Maryland Tax-Free Week
Every August, Maryland holds a seven-day tax holiday beginning on the second Sunday of the month. Qualifying clothing and footwear priced at $100 or less per item are exempt from the 6% tax during that week, and the first $40 of any backpack or bookbag purchase is also tax-free. Other accessories do not qualify.6Comptroller of Maryland. Comptroller of Maryland Programs – Shop Maryland Tax-Free Week In 2025, the holiday ran August 10 through August 16.
Use Tax on Out-of-State Purchases
When you buy something from an out-of-state retailer that does not collect Maryland tax, you owe a use tax at the same 6% rate, or 9% for alcohol. The use tax is designed to level the field between in-state and out-of-state sellers. Individuals report and pay it by completing a Consumer Use Tax Return and mailing it to the Comptroller’s Revenue Administration Division in Annapolis.7Comptroller of Maryland. Tax Guidance – Sales and Use Tax
If you already paid sales tax to another state on the same purchase, Maryland gives you a credit up to what Maryland would have charged. Paid 4% elsewhere? You owe Maryland the 2% difference. Paid 6% or more? You owe nothing further.
Rules for Out-of-State and Marketplace Sellers
Out-of-state sellers must register and collect Maryland sales tax if, during the current or previous calendar year, they either earned more than $100,000 in gross revenue from sales delivered into Maryland or completed 200 or more separate transactions delivered into the state.8Comptroller of Maryland. Sales and Use Tax Alert 09-19 – Marketplace Facilitators Meeting either threshold is enough.
Marketplace facilitators such as Amazon, Etsy, and eBay must collect and remit tax on behalf of their third-party sellers for sales delivered into Maryland. If a marketplace handles collection, the individual seller does not collect tax on those facilitated sales. Sellers who also make direct sales outside the marketplace still need their own registration and must collect tax on those direct transactions. Sellers whose entire volume runs through a marketplace may still need to file zero-dollar returns to stay compliant.
Registering as a Seller
Any business selling taxable goods or services in Maryland needs a sales and use tax license before collecting tax. Registration is free through the Combined Registration Application on the Maryland Tax Connect portal.7Comptroller of Maryland. Tax Guidance – Sales and Use Tax You will need your business’s legal name, Federal Employer Identification Number (or Social Security Number for sole proprietors), physical business address, and expected start date for sales activity. Once approved, the Comptroller issues an eight-digit registration number that goes on every return and resale certificate.
Resale Certificates
If you buy goods to resell, you can avoid paying sales tax at purchase by giving your supplier a resale certificate. Maryland does not prescribe a specific form. The certificate needs your name, address, Maryland sales and use tax registration number, and a signed statement that the purchase is for resale.9Comptroller of Maryland. Tax Guidance – Purchases for Resale You can also generate one through Maryland Tax Connect.
One restriction affects small resale buyers. Vendors cannot accept a resale certificate on purchases under $200 paid by cash, check, or card unless the vendor delivers the goods directly to the buyer’s retail location.10Library of Maryland Regulations. COMAR 03.06.01.14 – Resale Certificates If you end up paying tax on a small resale purchase, you can claim a credit on your next sales tax return or file a refund request. A blanket resale certificate covers repeat orders from the same supplier as long as your registration number appears on each purchase order.
Filing Returns and Paying
How Often You File
The Comptroller assigns your filing schedule based on how much tax you collect. Businesses collecting $15,000 or more in sales tax per year file monthly, with each return due by the 20th of the following month. If you collect less than $15,000, you file quarterly, with returns due April 20, July 20, October 20, and January 20 for the preceding quarter. The Comptroller can move you from quarterly to monthly if your collections rise, sometimes after just one or two strong quarters. Returns and payments run through the Maryland Tax Connect portal.
The Vendor Discount
Maryland rewards timely filers with a small discount on the tax they owe. If your total tax due on a return is $6,000 or less, you keep 1.2%. If the tax due exceeds $6,000, the discount drops to 0.9% plus a flat $18. The maximum discount is $500 per return.11Comptroller of Maryland. Sales and Use Tax Application Help – Timely Discount File or pay late and the discount is gone.
Late Filing Penalty
A return filed after its due date triggers a 10% penalty on the unpaid tax, plus interest that continues to accrue until the balance is paid.12Comptroller of Maryland. Sales and Use Tax Application Help – If Late The penalty applies even if the return is one day late, and you forfeit the vendor discount for that period on top of it.