Kintsugi logo
+1 (415) 840-8847Sign UpLogin

Maryland Sales Tax Guide 2025: Everything to Know

Maryland Sales Tax Guide 2025: Everything to Know

Are you navigating the complexities of Maryland’s taxation system? Whether you’re a resident, business owner, or planning a move to the Old Line State, understanding how to manage Maryland’s tax obligations is essential for saving time and money. This guide will walk you through everything you need to know about Maryland’s state taxes, including sales tax, use tax, filing requirements, and more.

Maryland Sales Tax

Maryland sales tax law, enacted in 1947, imposes a 6% sales tax on most retail goods, taxable services, and alcoholic beverages. Sales tax in Maryland ensures compliance through the Maryland sales and use tax, which applies to in-state and out-of-state purchases.

Maryland Sales Tax Rate

Maryland’s base sales tax rate is 6.0%, which applies uniformly across the state, as there are no additional local sales taxes.

JurisdictionSales Tax Rate
State Tax6.00%
County Tax0.00%
City Tax0.00%
Special Tax0.00%
Combined Tax6.00%

For more information on city-based tax rates in Maryland check out Kintsugi’s City Level Sales Tax Guides.

Maryland Sales Tax Calculator

Imagine you own a bookstore in Baltimore, Maryland, and sell a novel priced at $50. You want to calculate the sales tax and the total amount the customer will pay at checkout.

Step 1: Determine the Sales Tax Rate

Maryland imposes a flat 6% sales tax statewide. The rate remains consistent regardless of where the sale occurs within the state.

Step 2: Calculate the Sales Tax

Use the formula for calculating sales tax:

Sales Tax = Item Price × Sales Tax Rate

Plug in the values:

Sales Tax = 50 × 0.06 = 3

The sales tax on the $50 novel is $3.00.

Step 3: Calculate the Total Price

Add the sales tax to the original price of the item to determine the total amount the customer will pay:

Total Price = Item Price + Sales Tax

Total Price = 50 + 3 = 53

Final Answer:

The total price of the novel, including sales tax, is $53.00.

Additional Considerations:

  1. Exemptions: Certain items, such as prescription drugs and groceries, are exempt from Maryland’s sales tax. Always check state guidelines for exempt goods and services.
  2. Use Tax: If a customer purchases an item from out-of-state and no sales tax is charged, they are responsible for paying Maryland’s 6% use tax.
  3. Remote Sales: Businesses outside Maryland must collect the state’s sales tax if they meet the economic nexus threshold of $100,000 in gross sales or 200 transactions annually.

By following this step-by-step process, businesses in Maryland can accurately calculate sales tax, ensuring compliance with state regulations.

FAQ on Sales Tax in Maryland

What is the Tax Rate for Nonresidents in Maryland?

The sales tax rate for nonresidents in Maryland is the same as residents—6%, applied to taxable goods and services.

What is the Sales Tax Rate in Maryland?

Maryland imposes a flat 6% sales tax statewide, with no additional local taxes.

How to Calculate Sales Tax in Maryland?

Multiply the item’s price by 6% (or 0.06) using a sales tax calculator. For example, on a $100 item: $100 × 0.06 = $6 in sales tax.

How to Calculate Sales and Use Tax in Maryland?

Use the same formula for both: Tax = Price × 0.06. Sales tax applies to in-state purchases, and use tax applies to out-of-state purchases used in Maryland.

Sales Tax Nexus in Maryland

Maryland’s base sales tax rate is 6%, and businesses must register for sales tax collection if they meet the state’s nexus thresholds or engage in taxable activities.

Effective DateThresholdIncludable Sales (Gross, Retail, or Taxable)When You Need to Register
October 1, 2018$100,000 in gross salesGross SalesFirst of the month following 30 days after exceeding the threshold in the current calendar year.
OngoingAny physical presence in MarylandRetail and Taxable SalesImmediately upon establishing physical presence, such as an office, warehouse, or employees.

FAQ on Sales Tax Nexus in Maryland

What is the Sales Tax Nexus in Maryland?

Sales tax nexus in Maryland is established through physical presence (e.g., office, employees) or economic activity exceeding $100,000 in sales annually.

How to File for Sales Tax Nexus in Jolliet Maryland?

Register for a sales tax permit with the Maryland Comptroller’s Office by providing business details online to begin collecting tax once nexus is established.

What is the Sales Tax Economic Nexus in Maryland?

Economic nexus in Maryland is triggered by $100,000 in gross sales annually within the state, requiring businesses to collect and remit sales tax.

Does Maryland Accept MTC Sales Tax Exempt Form no Nexus?

Yes, Maryland accepts the MTC Sales Tax Exemption Certificate for qualifying purchases even if no nexus exists, provided the buyer meets exemption criteria.

Maryland Sales Tax Exemptions

Maryland provides a range of sales tax exemptions to support businesses, nonprofits, and specific industries. These exemptions include items like manufacturing equipment, agricultural supplies, and nonprofit purchases that meet eligibility criteria.

CategoryExemption Description
Manufacturing EquipmentEquipment used directly in manufacturing or production processes is exempt from sales tax.
Agricultural SuppliesSeeds, fertilizers, and farm equipment used in agriculture are exempt.
Nonprofit OrganizationsPurchases made by qualifying nonprofits for their exempt activities are tax-exempt.
Prescription DrugsPrescription medications and certain medical devices are exempt.
Government PurchasesSales to federal, state, and local government agencies are exempt from sales tax.
Energy Used in ProductionEnergy consumed directly in manufacturing or agriculture is exempt from sales tax.
Resale ItemsGoods purchased for resale are exempt when the buyer provides a resale certificate.

FAQ on Sales Tax Exemptions in Maryland

How do I Apply for a Maryland Sales Tax Exemption Certificate?

To apply for a Maryland Sales Tax Exemption Certificate, complete the Sales and Use Tax Exemption Certificate Application (Form ST-200) through the Maryland Comptroller’s Office. Submit the form with the supporting documents such as the IRS nonprofit determination letters or other documentation.

What is the Maryland Sales Tax Exemption?

Maryland provides sales tax exemptions for items used directly in production, manufacturing, agriculture, and nonprofit activities. For a more detailed explanation, read this blog on Maryland sales tax exemptions and consult this list of production exemptions.

What is the Maryland SaaS Sales Tax?

Maryland applies sales tax to SaaS (Software as a Service) under its taxation rules for digital products and software services. Learn more in this blog on Maryland SaaS sales tax for additional guidance.

What is the Maryland Digital Products Sales Tax?

Digital products such as eBooks, movies, and music are taxable in Maryland, as they fall under tangible personal property. For a comprehensive breakdown, check this blog on Maryland digital products sales tax.

What is Exempt From Sales Tax in Maryland?

Maryland exempts prescription drugs, medical devices, manufacturing equipment, agricultural supplies, and sales to qualifying nonprofits. Refer to the Maryland Comptroller’s list of exemptions for details.

What is the $3200 Exemption in Maryland?

The $3200 exemption in Maryland applies to certain taxable estates, offering a deduction for estates valued below this threshold. For clarity, consult Maryland’s estate tax guidelines through the Comptroller’s Office.

How many Exemptions to Claim in Maryland?

The number of exemptions you can claim depends on your specific tax situation, including dependents and qualifying deductions. Review Maryland’s personal income tax exemptions or consult a tax advisor for more information.

Does Maryland Charge Sales Tax on Digital Products?

Yes, digital products such as software, streaming services, and downloads are taxable under Maryland law.

Is There Sales Tax on Clothing in Maryland?

Yes, Maryland imposes a 6% sales tax on clothing, except during the annual sales tax holiday when specific items like apparel and footwear priced under $100 are tax-exempt.

What Items are Exempt from Sales Tax in Maryland?

Items exempt from Maryland sales tax include prescription drugs, medical equipment, farm supplies, manufacturing tools, and nonprofit purchases for qualifying activities. Full details are available on the Maryland Comptroller’s website.

Maryland Sales Tax Filing

Maryland businesses must file sales tax returns electronically via the Maryland Comptroller’s Office portal. Filing frequency depends on your total taxable sales and assigned schedule.

What are the Maryland Sales Filing Requirements?

Maryland businesses are required to file sales tax returns monthly, quarterly, or annually, based on their total taxable sales. Returns must include total sales, taxable sales, and tax collected.

How Often do I Need to File Sales Tax in Maryland?

Filing frequency in Maryland depends on your taxable sales volume. Businesses with higher sales typically file monthly, while smaller businesses may file quarterly or annually.

How can I Apply for Maryland Sales Tax Registration?

Registering for sales tax in Maryland is essential for businesses selling taxable goods or services in the state. The Maryland Comptroller’s Office provides an easy-to-use online system for registering and managing your sales tax obligations.

  1. Visit the Maryland Comptroller’s Website: Go to the Maryland Comptroller’s website and click on the “Business Tax” or “Sales and Use Tax” section.
  2. Access the Central Registration System: On the Business Tax page, select “Register a Business Online.” This will direct you to the Maryland Combined Registration Online Application.
  3. Create an Account: If you are a first-time user, create an account by entering your email address and creating a password. Verify your email address to activate the account.
  4. Log In to the Registration System: Use your credentials to log in to the online registration system. This will take you to the dashboard where you can start a new registration.
  5. Start the Sales Tax Registration Application: Select the option to “Register for Sales and Use Tax.” Fill in the required details about your business.
  6. Provide Business Information:
    • Business name and legal structure (e.g., LLC, sole proprietorship)
    • Federal Employer Identification Number (FEIN) or Social Security Number (for sole proprietors)
    • Business address and contact details
    • Description of taxable goods or services your business will sell
    • Start date for taxable activities in Maryland.
  7. Add Additional Locations (if applicable): If your business has multiple locations, provide details for each, including addresses and contact information.
  8. Submit the Application: Review your application to ensure all details are accurate. Submit the form electronically through the Maryland Comptroller’s online system.
  9. Receive Your Sales Tax License: Once the application is approved, you’ll receive a Maryland Sales and Use Tax License. This license authorizes your business to collect and remit sales tax.
  10. Start Collecting and Filing Sales Tax: Begin collecting Maryland’s 6% sales tax on all taxable sales. Use the Maryland Comptroller’s portal to file sales tax returns based on your assigned filing frequency.

Completing this registration ensures compliance with Maryland tax laws and enables your business to operate legally. For additional support, visit the Maryland Comptroller’s website.

What Determines Maryland Sales and Use Tax Filing Frequency?

Filing frequency is determined by your taxable sales volume. High-volume businesses are assigned monthly filing, while lower-volume businesses may file quarterly or annually.

Maryland Sales Tax Due Date​

Sales tax returns are typically due on the 20th of the month following the reporting period. Late filings may result in penalties and interest.

Filing FrequencyDue Date
Monthly20th of the following month
Quarterly20th of the month following the quarter's end
AnnuallyJanuary 20th of the following year

What is the Deadline for Filing a Maryland State Tax Return?

The deadline to file Maryland state tax returns is generally April 15 for individuals and 20th of the month following the reporting period for sales tax.

What is the Penalty for Filing Sales Tax Late in Maryland?

Late filing of Maryland sales tax incurs a penalty of 10% of the unpaid tax and interest at a rate of 0.5% per month on the outstanding balance.

For More Information

For more information on how to file your sales tax, visit the Maryland Sales Tax Revenue Service website.

Ready to automate your sales tax?

Get started for free

Book a demo

Kintsugi logoKintsugi Textlogo

Business Address:

2261 Market St, Suite 5931 San Francisco, CA 94114

@2025 KintsugiAI, Inc. All rights reserved.

Product

PricingPlatform overviewIntegrationsKintsugi Intelligence

Business Address:

2261 Market St, Suite 5931 San Francisco, CA 94114

@2025 KintsugiAI, Inc. All rights reserved.
Soc21800DTC