Maryland Sales
Tax Rate

Maryland's general sales and use tax rate is 6 percent in 2026 and the state does not impose a general local sales tax. That makes the standard combined rate 6 percent for most taxable purchases, but special categories can use different rates. Alcoholic beverages are taxed at 9 percent and certain software or SaaS used in an enterprise computer system can be taxed at 3 percent under rules effective since July 1, 2025.

What Is the Maryland Sales Tax Rate in 2026?

Maryland's general sales and use tax rate is 6 percent for most taxable retail sales.

Maryland does not add a general county or city sales tax, so a standard taxable retail purchase in Baltimore, Annapolis, Rockville or another Maryland jurisdiction normally uses the same 6 percent general rate. The product or service category can still change the rate.

How to Calculate Maryland Sales Tax

For a standard taxable purchase, multiply the taxable sales price by 6 percent then add the tax to the price.

For example, a $250 taxable purchase subject to the general rate produces $15 of Maryland sales tax, making the total $265. If the transaction is an alcoholic beverage sale, the 9 percent rate applies to the taxable alcoholic beverage portion.

Maryland also has special-rate categories for certain rentals, electronic smoking products and other transactions. A sales tax calculator should identify the transaction type before applying a percentage.

Maryland Does Not Have General Local Sales Tax

Maryland counties and municipalities do not add a general sales tax on top of the state's 6 percent rate.

This means the ordinary combined state and local sales tax rate does not change from one Maryland county to another. Local governments can impose other taxes or fees, but those should not be presented as a general retail sales tax.

Maryland Software and SaaS Rules Changed Before 2026

Maryland's software and SaaS rules are more specific than the ordinary 6 percent retail-sales rule because some commercial enterprise-system use is taxed at 3 percent.

Maryland guidance explains that taxable SaaS used for commercial purposes in an enterprise computer system is subject to a 3 percent sales and use tax rate. The same SaaS sold for individual use can be taxed at 6 percent when it falls within the taxable digital-product or taxable-service rules.

The former exemption for customized software or SaaS was repealed effective July 1, 2025. Businesses buying software in 2026 should therefore classify both the product and its intended use rather than assume custom configuration makes the transaction exempt.

What Goods and Food Purchases Are Taxable in Maryland?

Maryland generally taxes sales of tangible personal property and specifically taxable services, while qualifying grocery-type food can be exempt.

Food sold by a substantial grocery or market business for off-premises consumption can qualify for exemption. Prepared foods such as heated food, sandwiches suitable for immediate consumption, party platters and salad-bar items can remain taxable.

• Most clothing and footwear are generally taxable outside a qualifying sales-tax holiday or specific exemption.
• Alcoholic beverages are subject to the 9 percent sales and use tax rate.
• Soft drinks, bottled water, candy and confectionery can be taxable under Maryland food rules.
• Qualifying prescription and medical items can be exempt when statutory requirements are met.
• Certain production machinery, equipment, utilities and fuel can qualify for business exemptions.

Maryland Sales Tax Exemptions Need Documentation

A seller should support an exempt Maryland sale with the certificate, purchaser status or transaction records required for the claimed exemption.

Maryland has exemptions for qualifying nonprofit and governmental purchases, resale transactions, production activities and other statutory categories. The exemption is transaction-specific, so a seller should not treat every sale to the same customer as exempt automatically.

For resale purchases, sellers should retain valid resale documentation and records that connect the exemption to the actual transaction.

Maryland Economic Nexus for Remote Sellers

A remote seller can be required to register and collect Maryland sales and use tax when it exceeds either the revenue threshold or the transaction threshold.

Maryland's current remote-seller standard applies when gross revenue from taxable goods or taxable services delivered into Maryland exceeds $100,000 or the seller makes 200 or more separate Maryland sales transactions during the relevant current or previous calendar-year measurement period.

The test uses OR, not AND. A remote seller can create economic nexus through high revenue with fewer than 200 transactions or through 200 transactions with lower total revenue.

Marketplace Facilitators Can Have Collection Duties

A marketplace facilitator that meets Maryland's nexus requirements can be responsible for collecting and remitting sales tax on facilitated sales.

Marketplace sellers should determine whether the marketplace is collecting Maryland tax on their behalf and whether the seller has separate direct sales that create an independent Maryland obligation. Marketplace collection does not remove every registration or recordkeeping question for the underlying business.

Maryland Use Tax Covers Untaxed Taxable Purchases

Maryland use tax generally applies when taxable goods or services are used in Maryland but the required Maryland sales tax was not collected.

For an ordinary taxable item, the use tax rate generally mirrors the 6 percent sales tax rate. Special-rate categories can use their corresponding tax rate. Credit can be available for qualifying tax legally paid to another state.

Sales Tax Is Separate From Maryland Income Tax and Payroll

Maryland sales tax applies to taxable transactions and should not be listed as an employee payroll deduction.

For wage and annual personal-tax questions, use the Maryland income tax guide. After genuine payroll is finalized, the Maryland pay stub generator can organize wages and deductions without mixing retail sales tax into payroll.

For broader lawful payroll documentation, the online paystub generator should be used only with accurate employment and payment information.

Tax Information and Responsible Use

This guide is for general sales-tax planning and business recordkeeping. It does not replace current instructions from the state tax authority or advice for a specific transaction.

Sales and use tax can depend on the product or service, delivery location, exemption status, seller activity and transaction date. Businesses should use current official rate tables and maintain records that support the tax collected or exemption claimed. Online PayStub is intended for lawful payroll, business and recordkeeping purposes and should be used only with genuine payroll information.