Maryland: Sales Tax Handbook
Maryland Sales Tax Rate
|State Sales Tax||Local Sales Tax Range||Average Local Tax||Average Combined Tax||Max Combined Tax|
2016 Maryland Sales Tax Handbook
Maryland Table of Contents
- List of Local Sales Tax Rates
- Sales Tax Calculator
- Sales Tax Exemption Certificates
- Sales Tax Info For Businessowners
- Taxable vs. Non-Taxable Purchases
- Sales Tax on Cars & Vehicles
- More Information
Maryland's Sales Tax By The Numbers:
Maryland has a higher-than-average state sales tax rate, but the actual sales tax rates in most Maryland cities are lower than average when compared to states that allow localities to collect sales taxes (Maryland does not).
Rankings by Average State + Local Sales Tax:
Ranked 33rd highest by combined state + local sales tax
Ranked 42nd highest by per capita revenue from state + local sales taxes ($695 per capita)
Rankings by State Sales Tax Only:
Ranked 7th highest by state sales tax rate
Ranked 30th highest by per capita revenue from the statewide sales tax ($697 per capita)
Printable PDF Maryland Sales Tax Datasheet
Maryland has a statewide sales tax rate of 6.00%, which has been in place since 1947.
Unlike many other states, Maryland doesn't allow municipal governments to collect a local option sales tax. Therefore, sales tax rates will be the same across the entire state.
This page provides an overview of the sales tax rates and laws in Maryland. If you are a business owner and need to learn more about things like getting a sales tax permit, filing a sales tax return, or making tax-exempt purchases for resale see the Maryland Sales Tax Handbook's Table of Contents above.
What is exempt from sales taxes in Maryland?
Many states have special sales tax rates that apply to the purchase of certain types of goods, or fully exempt them from the sales tax altogether. Here's how Maryland taxes five types of commonly-exempted goods:
For more details on what types of goods are specifically exempt from the Maryland sales tax see Maryland sales tax exemptions. To learn more about what types of transactions are subject to the sales tax to begin with, see what purchases are taxable in Maryland? Taxation of vehicle purchases in particular are discussed in the page about Maryland's sales tax on cars.
Are services subject to sales tax in Maryland?
"Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In Maryland, specified services are taxable.
About the Maryland Sales Tax
The state of Maryland has relatively simple sales tax rate, and utilizes a flat state tax rate with no local option sales taxes permitted. The sales tax extends to include internet purchases and other mail-ordered items.
It is worth noting that Maryland has an annual "back-to-school" tax holiday, which applies to certain items. In addition, Montgomery County levies a 5 cent tax for each plastic bag provided by a retailer in the process of a sale, pickup, or delivery. Of this tax, 4 cents is given to the Montgomery County water quality fund.
Is the Maryland Sales Tax Destination-Based or Origin-Based?
Maryland is a destination-based sales tax state, which means that sales tax rates are determined by the location of the buyer when the transaction is completed. This means that, for orders placed via the internet/mail by a customer within Maryland from a Maryland vendor, the vendor must collect a sales tax rate applicable at the buyer's address (including any applicable local sales taxes). This can significantly increase the complication of filing your sales tax return, because different sales tax rates must be charged to different buyers based on their location.
Is Maryland a Streamlined Sales Tax State?
Maryland is not a member of the Streamlined Sales and Use Tax Agreement. The SSUTA is an agreement adopted by about half of states that ensures that their sales tax laws are simplified to lower the costs associated with compliance.
Contact the Maryland Comptroller
The Maryland Sales Tax is administered by the Maryland Comptroller. You can learn more by visiting the sales tax information website at taxes.marylandtaxes.com.
Phone numbers for the Sales Tax division of the Comptroller are as follows:
- Local Phone: (410) 260-7980
- Toll-Free Phone: (800) 638-2937
Learn More: Our Book Recommendations
If you would like to learn more about how to manage your Maryland sales taxes, we recommend the following books:
Simplify Maryland sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.
Maryland Sales Tax Rates by Zip Code:
Need an updated list of Maryland sales tax rates for your business? Download our Maryland sales tax database!