Key takeaways
- Maryland sales tax rates: The standard rate is 6% statewide with no local sales taxes, and a 3% rate has applied to certain IT and data services since July 1, 2025.
- Economic nexus: Remote sellers must collect once they exceed $100,000 in sales or 200 transactions in Maryland in the current or previous calendar year. Either threshold triggers a collection obligation.
- Filing & penalties: Returns are due on the 20th of the month after the period. Late filing or payment costs 10% of the tax due, plus interest of at least 1% per month.
Maryland sales tax key facts (2026)
| Item | Maryland |
|---|---|
| Statewide rate | 6% (no local sales tax) |
| IT / data & software services | 3% (new, since July 1, 2025) |
| Alcohol / passenger car rental | 9% / 11.5% |
| Economic nexus threshold | $100,000 or 200 transactions |
| Sourcing | Destination-based (single statewide rate) |
Collect and file Maryland sales tax with Taxually: LumaTax monitors your nexus, registers you and files your returns.
Is SaaS taxable?
Yes for consumer use (B2B exempt).
| Item | Maryland |
|---|---|
| Groceries | Exempt (prepared food taxable) |
| Return due date | 20th of the month after the period |
| Governing agency | Comptroller of Maryland |
What is the sales tax rate in Maryland?
Maryland’s standard sales and use tax rate is 6%, and there are no local sales taxes — the 6% applies statewide. Special rates apply to a few categories: 9% on alcoholic beverages, 11.5% on short-term passenger car and RV rentals, and 8% on certain short-term truck rentals.
New for 2025: effective July 1, 2025, Maryland added a 3% sales tax on certain data and information-technology services and system-software publishing (defined by specific NAICS codes). If you sell IT, data, or cloud-type services into Maryland, check whether this new 3% rate applies.
Do you have sales tax nexus in Maryland?
Nexus is the connection that obligates your business to collect and remit Maryland sales tax. You can establish it two ways — physically or economically. Either one is enough.
Physical nexus
You have physical nexus if you have a tangible presence in Maryland, such as:
- A business location in Maryland
- Renting office space or equipment used to manufacture or distribute goods
- Employees who solicit and accept orders in Maryland
- Installing or assembling products in the state
- Maintaining inventory in Maryland
- Operating mobile stores that make direct sales in the state
Economic nexus
Out-of-state sellers establish economic nexus once they exceed $100,000 in sales or 200 separate transactions in Maryland in the current or previous calendar year. Either threshold triggers a collection obligation.
What is taxable in Maryland?
Most tangible personal property is taxable; most services are not, with a growing set of exceptions. Maryland taxes digital products (such as e-books, streaming, and downloaded media) at 6% — in effect since March 2021 — and, as noted above, added a 3% tax on certain IT and data services in 2025.
Is SaaS taxable in Maryland?
It depends on the buyer. Since July 1, 2022, Maryland taxes SaaS only for non-business (consumer) use — SaaS purchased by a buyer for use in their business/commercial purposes is exempt. Separately, the new 2025 3% tax may apply to certain software and IT services.
How is food taxed in Maryland?
Food sold at a grocery store or market for off-premises consumption is generally exempt (as is unprepared seafood and most vending-machine food). Prepared food for on-premises consumption is taxed at 6%.
How to register for a Maryland sales tax permit
Obtain a Sales and Use Tax License before collecting. Taxually can register for you, or you can apply online through the Maryland Tax Connect portal or by paper application to the Comptroller of Maryland. Registration is free.
Have ready: the purpose of your application, business details (name, address, contact), entity type, the nature of your operations, your start date for collecting, and information about any other owners or partners.
How to collect sales tax in Maryland
With no local taxes, you apply the 6% state rate (and any special rate, like 9% on alcohol or the new 3% on qualifying IT/data services) to taxable Maryland sales — the same whether you’re based in Maryland or selling remotely.
Filing and paying Maryland sales tax
Most businesses file quarterly; higher-volume sellers file monthly, and lower-volume sellers may file semi-annually or annually. Returns and payments are due the 20th of the month following the period (next business day if a weekend or holiday).
File and pay through Maryland Tax Connect or by mail. File on time and you may keep a vendor discount of 1.2% on the first $6,000 of tax and 0.9% above that, capped at $500 per return. Taxually’s software automates the full process.
Penalties for late or non-compliant filing
Failing to file or pay on time triggers these penalties:
- Late filing/payment: 10% of the tax due.
- Interest of at least 1% per month on the amount owed.
Frequently asked questions
What is the sales tax rate in Maryland in 2026?
The standard rate is 6% statewide with no local taxes. Alcohol is 9%, passenger car rentals 11.5%, and a new 3% rate applies to certain IT and data services as of July 1, 2025.
What is the economic nexus threshold for Maryland?
$100,000 in sales or 200 separate transactions in the current or previous calendar year.
Is SaaS taxable in Maryland?
SaaS is taxable for non-business (consumer) use; SaaS purchased for business use is exempt. The 2025 3% IT-services tax may apply to some software/IT services separately.
Are groceries taxed in Maryland?
No, groceries for off-premises consumption are exempt. Prepared food is taxed at 6%.
When are Maryland sales tax returns due?
The 20th of the month following your reporting period.
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