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MarylandSales Tax

A Complete Guide For Businesses

Automate My MarylandSales Tax Filings

State Rate
6.00%

Local Tax
no

Phone
(410) 260-7980

General requirements

Maryland is a destination-based state (sales are taxed where the buyer is located).

  • Sales tax is charged on the gross receipts of the retail sale or lease of tangible personal property (TPP)
  • Separately-stated charges for installation, professional services, delivery services, and interest do not apply
  • For manufacturers, purchases used for production aren’t taxed
  • For distributors, items purchased for resale aren’t taxed

Businesses may file in the following ways:

  • Online using Bfile
  • By mail using only the forms sent by the Comptroller
  • If you don’t owe tax for the period, you can file by telefile service at (410) 260-7225 at any time during weekdays and weekends

Rates

The Maryland sales and use tax is 6%.

A 9% tax rate is applied to the sale of alcoholic beverages.

An 11.5% tax rate is applied to short-term passenger car and recreational vehicle rentals, while certain short-term truck rentals are subject to an 8% tax rate.

How food is taxed

The 6% general sales tax applies to prepared food sold for consumption on premises.

The following sales of food for human consumption are exempt from this tax:

  • The sale of food at a grocery or market to be consumed off premises
  • The sale for consumption off premises of crabs, or seafood not prepared for immediate consumption
  • Sale of food through a vending machine

Nexus in Maryland

A business is considered to have established a tax presence in the state if it:

  • Maintains a business location in Maryland, including any kind of office
  • Rents office space or equipment used in the manufacture and distribution of goods
  • Has employees who solicit and accept orders in Maryland
  • Install or assemble their products in Maryland
  • Maintain inventory in a warehouse or with a distributor or other representative
  • Maintain mobile stores from which direct sales are made

Find out more about nexus in Maryland.

Filing schedule

If you file your return and pay on time, you’ll receive a timely-filing sales tax discount.

Due dates are as follows:

  • Quarterly filers: Returns are due on or before the last day of the month following the tax period
  • Monthly filers: Returns are due on or before the 20th of the month following the tax period

Registering to collect sales tax in Maryland

You can register for a Sales and Use Tax License online here.

If you have an existing account, or are applying for a consolidated account, you must use a paper application to be faxed to (410) 260-7908 or mailed to:


Comptroller of Maryland
Revenue Administration Center
110 Carroll Street
Annapolis, Maryland 21411-0001

Penalties

If you file late, you’ll be charged a 10% penalty plus interest at no less than 1% per month and forfeit the timely filing discount.

See how easy it is to automate your sales tax filings.

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