Maryland state seal

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

Business activities that establish a tax presence in the state include:

  • Maintaining a business location in Maryland, including any kind of office
  • Renting office space or equipment used in the manufacture and distribution of goods
  • Having employees who solicit and accept orders in Maryland
  • Installing or assembling products in Maryland
  • Maintaining inventory in a warehouse or with a distributor or other representatives in Maryland
  • Maintaining mobile stores from which direct sales are made

Economic nexus in Maryland:

  • The state issued a tax alert after the SCOTUS South Dakota v. Wayfair ruling, leaving economic nexus up to an individual seller's discretion.

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.

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