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
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.
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
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.
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
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
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.