Maryland Sales Tax on Optional Maintenance Contracts Maryland: Sales Tax Handbook

Maryland:

Are Optional Maintenance Contracts subject to sales tax?

While Maryland's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of optional maintenance contracts in Maryland, including parts purchased for use in performing service under optional maintenance contracts. To learn more, see a full list of taxable and tax-exempt items in Maryland.


General Optional Maintenance Contracts
EXEMPT
Sales of are exempt from the sales tax in Maryland.

Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts
TAXABLE
Sales of parts purchased for use in performing service under optional maintenance contracts are subject to sales tax in Maryland.



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