2024 Guide to Sales Tax in Baltimore, Maryland

What is the Sales Tax in Baltimore?

The total sales tax rate in Baltimore consists solely of the Maryland state tax rate, as there are no additional local sales taxes imposed by the city or county.

Breakdown of Sales Tax in Baltimore

• State Sales Tax: 6.00%
• County Sales Tax: 0.00%
• City Sales Tax: 0.00%
• Special Sales Tax: 0.00%

What is Baltimore County Sales Tax?

In Baltimore, which is part of Baltimore County, there is no additional county sales tax, meaning the rate remains consistent throughout.

Tax Rates in Baltimore, Maryland

Here are the sales tax rates for the top 10 most populated zip codes in Baltimore:

Other Tax Rates for Baltimore

Here are some other applicable tax rates for businesses in Baltimore:

What Items are Taxable in Baltimore?

In Maryland, certain items are taxable while others are exempt. Common taxable items include:

What Items are Exempt from Taxes in Baltimore?

Some items are exempt from sales tax in Maryland, typically for essential goods or to encourage certain purchases:

Who Needs to Collect Sales Tax in Baltimore?

Businesses need to collect sales tax in Baltimore if they have either physical or economic nexus in Maryland.

Physical Nexus

You have a physical presence in Maryland if you:

• Own or lease property in Maryland
• Have employees in Maryland
• Maintain inventory in Maryland

Economic Nexus

You have economic nexus if your sales into Maryland exceed $100,000 or 200 transactions in the current or previous calendar year.

How to Get a Sales Tax Permit?

If you meet the nexus requirements, you must register for a sales tax permit in Maryland. Here’s how:

1. Visit the Maryland Comptroller’s website.
2. Complete the application for a sales tax permit.
3. Submit the application and await approval.

How Do You Charge the Right Amount for Sales Tax?

Ensuring you charge the correct sales tax involves:

• Manually checking and updating rates: Regularly check the Maryland Comptroller’s website for updates.
• Using sales tax software: Implement software like TaxCloud to automate rate updates and compliance.

How Do You File and Remit Sales Tax?

Sales tax returns are filed with the Maryland Comptroller. Here’s how:

1. Collect sales tax from customers.
2. File your sales tax return online.
3. Remit the collected taxes to the state.

Conclusion

Understanding and complying with sales tax regulations in Baltimore is essential for any business operating in Maryland. Use this guide to navigate the complexities of sales tax in Baltimore and ensure your business remains compliant.