Maryland sales tax rates 2026: Calculator, nexus, and due dates

Maryland sales tax rates by city and county

Maryland is one of the simplest states for sales tax rate calculation. The 6% state rate applies statewide, and no city, county, or special district adds a local sales tax on top. Every address in Maryland has the same 6% combined rate for general retail sales.

Maryland does apply a higher 9% rate on sales of alcoholic beverages and a 10% rate on short-term automobile rentals. Motor vehicles, boats, and real estate are not subject to sales tax — they are subject to separate titling taxes instead.

Because Maryland is a destination-based state, you apply the rate based on where the customer receives the product. However, since there is only one general rate statewide, the destination address does not change the rate — it only determines that Maryland sales tax applies. All returns are filed with the Comptroller of Maryland.

Major Maryland cities and their 2026 combined rates:

Maryland sales tax calculator

Can’t find your city? Use the TaxCloud Sales Tax Calculator to look up any Maryland ZIP code.

The rates in this calculator are powered by the same real-time engine used within our platform. While Maryland’s 6% rate is uniform statewide, the calculator confirms this for any address — and is especially useful for multi-state sellers verifying rates across all 50 states. To move from estimates to automated, rooftop-level accuracy, start your 30-day free trial and see the engine in action.

Maryland nexus thresholds

Remote sellers and businesses with a physical presence in Maryland are subject to nexus laws. You are required to register and collect sales tax if you trigger “nexus” through a physical presence in the state or by exceeding the economic thresholds as a remote seller.

Maryland economic nexus

You will trigger Maryland economic nexus if you exceed either of the following thresholds in the current or previous calendar year:

• Sales threshold: $100,000 in gross revenue from sales into Maryland (including taxable, exempt, wholesale, and marketplace-facilitated sales).
• Transaction threshold: 200 or more separate transactions.

Maryland uses an “or” standard — exceeding either threshold triggers nexus. Maryland includes exempt sales and wholesale transactions in threshold calculations. Review the Comptroller of Maryland’s remote seller guidance for details on how marketplace-facilitated sales are treated for individual seller threshold purposes. Once nexus is triggered, the seller must register with the Comptroller of Maryland by the first day of the month following the month the threshold was exceeded.

Maryland physical nexus

You have physical nexus (and must register from dollar one) if you have:

• Inventory: Storing goods in a warehouse, 3PL, or Amazon FBA fulfillment center in Maryland.
• Personnel: Employees, contractors, sales reps, or agents conducting business in Maryland.
• Property: Maintaining an office, storefront, distribution center, or other place of business in Maryland.

Maryland sales tax permit registration

Once you trigger nexus, you must register with the Comptroller of Maryland before you can legally collect sales tax.

Operating without a permit after crossing the threshold exposes you to back taxes, penalties, and interest from the date nexus was established — not the date you registered.

1. Gather your information. You’ll need your FEIN, business structure details, estimated sales, and bank account information.
2. Submit your application. Register online through the Maryland Tax Connect portal by selecting “Register a Business in Maryland — CombinedRegistration Application.” There is no fee for obtaining a sales and use tax license.
3. Note your effective date. Maryland expects registration by the first day of the month following the month the threshold was exceeded. If there’s a gap between crossing the threshold and registering, you may owe back taxes for that period.

If you have questions about your Maryland registration or compliance history, TaxCloud’s U.S.-based support team typically responds within 2 hours and can review your setup directly.

Maryland sales tax calculation rules

Maryland’s calculation rules are straightforward — a flat 6% rate statewide, no local taxes, and destination-based sourcing. The main compliance nuances involve the dual-rate SaaS tax structure and the category-specific higher rates for alcoholic beverages and auto rentals.

What is taxable in Maryland?

Taxability in Maryland is determined by how a product is classified under state law. Below is a high-level summary of how major categories are generally treated for 2026:

• Tangible personal property: Most physical goods — such as furniture, electronics, and standard retail items — are subject to the 6% state sales tax unless a specific exemption applies. Shipping charges are not taxable when separately stated; handling charges are taxable. If shipping and handling are combined into a single charge, the entire amount is taxable. Alcoholic beverages are taxed at 9%.
• SaaS, software, and digital products: Maryland taxes SaaS using a dual-rate system. SaaS sold for use in an enterprise or commercial computer system is taxed at 3% (the “Tech Tax”). SaaS sold to individual consumers or for non-enterprise use is taxed at the standard 6% rate. Prewritten software — whether delivered electronically or on a physical medium — is taxable. The custom software exemption was repealed effective July 1, 2025 — custom software delivered electronically is now taxable. Digital products — including streaming services, ebooks, apps, games, and digital codes — are taxable at the standard 6% rate.
• Food & groceries: Maryland exempts most unprepared food and food ingredients from sales tax. Prepared food (consumed on premises or packaged for carry-out) is taxable at the standard 6% rate. Candy and soft drinks are taxable.
• Clothing: Clothing and footwear are taxable at the standard 6% rate, except during the annual back-to-school sales tax holiday when items priced at $100 or less are exempt.

What is tax exempt in Maryland?

Below is a high-level summary of items that are generally tax-exempt in Maryland:

• Essential exemptions: Maryland provides specific exemptions for items such as prescription drugs, corrective eyeglasses and contact lenses, most unprepared food and food ingredients, baby products (bottles, diapers, wipes, car seats), and residential energy.
• Additional exemptions: Sales for resale (with a valid exemption certificate), agricultural supplies and equipment, manufacturing equipment, and purchases by qualifying government agencies, religious organizations, nonprofit charitable organizations, and schools.

Maryland sales tax return due dates and filing frequency

In Maryland, sales tax returns are due on the 20th of the month following the reporting period. The Comptroller of Maryland assigns filing frequency based on your sales tax liability.

Critical 2026 compliance notes:

• Dual-rate SaaS tax: Maryland taxes B2B/enterprise SaaS at 3% and B2C/individual SaaS at 6%. Sellers must correctly classify each transaction. If SaaS is sold for use in an enterprise computer system, the 3% rate applies. All other SaaS sales to individuals or non-enterprise users are taxed at 6%.
• Custom software exemption repealed (July 1, 2025): Custom or modified software delivered electronically is now taxable. Sellers who previously treated custom software as exempt must update their tax collection settings.
• Sales tax holidays: Maryland holds two annual holidays. The back-to-school tax-free week runs from the second Sunday in August through the following Saturday (August 9–15, 2026) — clothing and footwear under $100 and the first $40 of backpacks are exempt. The Energy Star weekend runs from the second Saturday through Monday in February for qualifying energy-efficient products.
• Alcoholic beverages at 9%: Sales of alcoholic beverages are taxed at 9%, not the standard 6%. Sellers must apply the correct rate and report these sales separately.
• Zero-return requirement: If you are registered but had $0 in sales this period, you must still file.
• Weekend/holiday rule: If the 20th falls on a weekend or state holiday, your return is due the next business day.
• Electronic filing: Maryland Revenue Services requires electronic filing through the Maryland Tax Connect portal.
• Vendor discount: Maryland offers a timely filing discount — 1.2% of the first $6,000 in sales tax collected, plus 0.9% of the amount above $6,000, up to a maximum of $500 per return.

Maryland and the Streamlined Sales Tax (SST) program

Maryland is not a member of the Streamlined Sales Tax (SST) program.

However, because TaxCloud is a Certified Service Provider of the SST Program, we can save your business time and money on state registration and filing costs in 24 SST-member states — and handle your Maryland filing.

See how our SST status can eliminate your filing fees.

The latest Maryland sales tax changes

We track Maryland’s shifting sales tax landscape so you don’t have to.

Here are the most relevant updates for 2026:

• Custom software exemption repealed (July 1, 2025): The exemption for customized or modified computer software delivered electronically was repealed. Custom software is now taxable if delivered electronically, joining prewritten software and SaaS in the taxable base.
• Dual-rate SaaS tax in full effect (2026): Maryland’s unique dual-rate system taxes B2B enterprise SaaS at 3% and B2C/individual SaaS at 6%. This distinction — unique among U.S. states — requires sellers to correctly classify each transaction based on whether the purchaser uses the software in an enterprise or commercial computer system.