Maryland Sales Tax

Maryland Sales Tax Guide (2026)

A flat 6% with no local add-on anywhere in the state, plus a new 3% tax on data, IT and software publishing services that reaches business-to-business work previously untaxed.[1]

5 min read • Reviewed by Tax Advisory Team • Verified • Sources: MD Comptroller
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Quick Facts

Sales Tax at a Glance

State base rate
6% [1]
Local sales tax
None, statewide [1]
Tech services rate
3%, from 7/1/25 [2]
Alcoholic beverages
9% [3]
Digital products
6%, since 3/14/21 [4]
Economic nexus
$100k or 200 sales [5]
Vendor discount
Capped at $500 [6]
Multiple points of use
Certificate available [7]
Upcoming change
MPU statute, 1/1/27 [7]
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A new 3% tax on data and IT services began July 1, 2025

The Budget Reconciliation and Financing Act created a 3% rate on data, IT and software publishing services, defined by NAICS code rather than by description.[2] These categories are in scope:

NAICS 518, data & hosting NAICS 519, information services NAICS 5132, software publishing NAICS 5415, IT design & programming Cloud & colocation Custom programming
There is no exemption for sales between affiliated companies. Intercompany IT charges that were previously outside the base can now be taxable at 3%, which is the detail most likely to catch groups out.[2]
Estimate

Maryland sales tax calculator

Maryland · flat rate 6%
Maryland has no local sales tax, so the rate is the same statewide.
Rate applied–
Estimated sales tax–
Total with tax–

Estimate only. Where a transaction could fall under both the 3% and 6% rates, Maryland applies the higher of the two.[2] Talk to CrownGlobe about a specific contract.

Rates & Registration

Maryland Sales Tax Rates, Nexus & the NAICS test

Maryland rate table

General sales6%
Data & IT services3%
Alcoholic beverages9%
Passenger vehicle rental11.5%
Truck rental8%

These are alternative rates, not add-ons. The special rate replaces the 6% rate for that category rather than stacking on top.[3]

Who must register

Either trigger applies: economic nexus (over $100,000 of Maryland revenue or 200 or more separate transactions in the current or prior calendar year), or a physical presence such as an office, warehouse or in-state representative.[5]

Classification, not description, decides: the 3% tax turns on NAICS category. The Comptroller warns that a vendor may not simply rely on its own principal business code, and must assess each service individually.[2]

Compliance

Sales Tax Registration and Filing

One Combined Registration Application covers Maryland business taxes.

How to register

  • Confirm nexus→
  • Combined Registration→
  • Maryland Tax Connect→
  • Get licence→
  • File returns

Marketplace facilitators must file monthly regardless of volume, and report facilitated sales separately from their own.[8]

Filing & due dates

FrequencyAssigned byDue
MonthlyComptroller assignment20th of next month
QuarterlyComptroller assignmentApr / Jul / Oct / Jan 20
AnnualComptroller assignment20th after year

Timely filers keep 1.2% of the first $6,000 of tax and 0.9% above that, capped at $500 a return.[6] Late payment costs 10% plus monthly interest.[9]

Pricing

Sales Tax & Nexus Pricing

Multi Tax Filing – $50 Per State/Month

ServiceWhat’s Included
Multi-state registrationNexus tracking, permit setup, and state agency coordination.
Monthly filingSales tax returns filed in every registered state.
Exemption & audit supportCertificate handling and notice response.
Get Started with Multi-State Filing
Taxability

Taxable vs. exempt

Maryland taxes goods, digital products and, since July 2025, a defined list of technology services.[1]

Generally taxable

  • Tangible retail goodsTax-Gen 11-102
  • Digital products & codes6% since 2021
  • Cloud hosting & data processing3%, NAICS 518
  • Software publishing3%, NAICS 5132
  • Custom programming & systems design3%, NAICS 5415
  • Alcoholic beverages9%, Tax-Gen 11-104

Generally exempt

  • Groceries for home consumptionTax-Gen 11-206
  • Medicine & medical suppliesTax-Gen 11-211
  • Manufacturing machineryTax-Gen 11-210
  • Sales to exempt organisationsTax-Gen 11-204
  • Separately stated deliveryDirect to buyer
  • Sales for resaleWith resale certificate
Worth flagging: a multiple points of use certificate lets a buyer self-assess only the Maryland share when a service is used across several states. The administrative process from July 2025 is replaced by a statutory framework on January 1, 2027.[7]
Reference

Glossary of key terms

Tech services tax
Maryland’s 3% rate on data, IT and software publishing services, effective July 2025.
NAICS code
The industry classification system Maryland uses to define what the 3% rate covers.
Multiple points of use
A certificate letting a buyer apportion tax when a service is used inside and outside Maryland.
Digital product
Electronically delivered content taxed at 6% in Maryland since March 2021.
Vendor discount
The share of tax a timely filer may keep, capped at $500 per return.
Combined Registration
The single application registering a business for Maryland business taxes.
FAQ

Sales Tax FAQs

A flat 6%. Maryland has no county or city sales tax, so the rate is the same everywhere in the state.

A tax on data, IT and software publishing services effective July 1, 2025, defined by NAICS categories 518, 519, 5132 and 5415. It covers cloud hosting, data processing, software publishing and custom programming.

Yes. The Comptroller has confirmed there is no exemption for sales between affiliated or related companies, so intercompany IT charges can be taxable.

It depends on classification. Some SaaS falls under the new 3% tech tax, while some arrangements were previously exempt as software for a commercial enterprise’s own use. It needs a transaction-level review.

Over $100,000 of Maryland revenue or 200 or more separate transactions in the current or preceding calendar year. Either test triggers registration.

A separately stated delivery charge for delivering goods directly to the buyer is excluded. Combining it with a handling charge, or failing to state it separately, makes the whole charge taxable.

Verification

Sources & methodology

  1. MD Comptroller – Business Tax Tip #8 (PDF)
  2. COMAR – 03.06.01.48 Data or IT Service
  3. MD Comptroller – Alcohol Rate Chart (PDF)
  4. MD Comptroller – Business Tax Tip #29 (PDF)
  5. COMAR – 03.06.01.33 Out-of-State Vendor
  6. MD Comptroller – Business Tax Tip #22 (PDF)
  7. MD Comptroller – Technical Bulletin 54 (PDF)
  8. MD Comptroller – Marketplace Alert (PDF)
  9. MD Comptroller – Form 202 Instructions (PDF)
  10. COMAR – 03.06.01.14 Resale Certificates
  11. MD Comptroller – Economic Nexus Alert (PDF)
  12. MD Comptroller – Sales & Use Tax Home
  13. MD General Assembly – HB 352 (2025)
  14. MD Comptroller – Maryland Tax Connect
Methodology: Every figure is checked against the Comptroller of Maryland or the Maryland Tax-General Article directly, never copied from a third-party guide. The multiple points of use framework changes on 1 January 2027, so this page is reviewed each half year.
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