Maryland Sales Tax Guide

Do You Need to Collect and Remit Sales Tax in Maryland? 

Understanding your sales tax obligations is critical to running a compliant business—especially in a state like Maryland, where the rules are straightforward at a glance but nuanced in practice. Maryland imposes a statewide sales and use tax rate of 6%, with no local sales tax layer. That simplicity, however, is balanced by a detailed and evolving taxability matrix that reaches beyond traditional retail.

At a high level, Maryland’s current structure looks like this:

• 6% tax applies to most tangible personal property, digital products, and digital codes
• 3% tax applies to certain data and IT services, software publishing, and licensing of media, software, and other intellectual property
• 9% tax applies to alcoholic beverages
• 12% tax applies to adult-use cannabis, electronic smoking devices, and certain tobacco-related products

Maryland also maintains a broad—but highly specific—list of exemptions. These include items like qualifying hygienic products, groceries, and certain baby supplies. In addition, some purchases made by nonprofits or for resale may qualify for exemption when supported by a valid certificate.

That said, exemptions are not static. Maryland has recently repealed or narrowed several long-standing exemptions, including:

• Snack foods sold through vending machines
• Precious metal bullion or coins over $1,000 (with limited exceptions)
• Certain photographic materials used in printing production
• Custom computer software (now taxable regardless of delivery method)

If your taxability position has not been reviewed since these changes took effect, now is the time. Relying on yesterday’s exemption is one of the fastest ways to create today’s liability.

Do You Have Sales Tax Nexus in Maryland? 

Sales tax nexus refers to the level of connection between your business and a state that triggers a legal obligation to collect and remit sales tax.

Maryland recognizes two primary types of nexus:

• Physical nexus
• Economic nexus

Physical Sales Tax Nexus

A business generally establishes physical nexus in Maryland if it maintains a tangible presence in the state. This includes more than just a storefront. Common triggers are:

• Offices or business locations
• Sales or sample rooms 
• Warehouses or inventory storage
• Agents, representatives, or salespersons operating in Maryland
• Using company-owned or leased vehicles to deliver goods within the state

If your business is operating on the ground in Maryland in any meaningful way, you likely need to collect and remit sales tax to the state.

Economic Sales Tax Nexus

Even without a physical footprint, businesses can establish nexus through economic activity alone.

Maryland’s economic nexus threshold is met if, during the current or previous calendar year, a business:

• Exceeds $100,000 in gross revenue from Maryland sales, or
• Completes 200 or more separate transactions into the state

This threshold applies to gross sales, meaning sales that are both exempt and taxable.

In practical terms, you don’t need to be in Maryland to owe Maryland sales tax. If your revenue or transaction volume crosses the threshold, the state considers you “in business” there.

Not sure where your business stands? Nexus determinations can get complicated quickly—especially if you’re selling across multiple states or channels. SalesTaxSolutions.US offers nexus reviews and exposure assessments to help you identify where you’re at risk and what to do next before it becomes a liability.

Are Marketplace Facilitators Required to Collect and Remit Sales Tax in Maryland? 

Yes—Maryland requires marketplace facilitators to collect and remit sales tax on behalf of third-party sellers for transactions delivered into the state.

Marketplace facilitators are subject to the same economic nexus thresholds as other remote sellers:

• $100,000 in Maryland sales, or
• 200 separate transactions

Once those thresholds are met, the facilitator—not the individual seller—is typically responsible for collecting and remitting the tax on marketplace transactions.

In practice, this means major platforms are already handling sales tax compliance for many sellers. However, that does not eliminate your compliance responsibilities entirely. In case of an audit, you should maintain documentation confirming the facilitator is collecting and remitting on your behalf. Additionally, marketplace sales still count toward your economic nexus threshold. If you make both direct sales and marketplace sales, you should include both when evaluating nexus.

Common marketplace facilitators include:

• Amazon    
• eBay  
• Shopify Shop App
• Etsy    
• Walmart Marketplace

Filing Maryland Sales Tax

Before filing, businesses must register using the Maryland Combined Registration Application, which establishes a sales and use tax account.

After registration, filing frequency is assigned by the Comptroller:

• New businesses are typically assigned quarterly filing
• Filing frequency may shift to monthly depending on tax liability

Once registered, all returns are filed through Maryland Tax Connect, the state’s online filing system. Maryland is moving toward fully digital compliance under recent legislation. Maryland officially discontinued the legacy bFile system as of January 2024, now letting it function largely as a view-only backstop for sales and use history. Electronic filing will be mandatory for sales and use tax returns for periods beginning after December 31, 2026.

Limited exceptions may apply, but most businesses should plan for full e-filing compliance.

Need help staying compliant with sales tax returns? Whether you’re filing in Maryland or across the United States, SalesTaxSolutions.US provides full-service filing and compliance support so you can focus on running your business.

Timely Filing Discount

Maryland offers a small incentive for staying compliant. If you file and pay on time, you may retain:

• 1.2% of the first $6,000 collected, and
• 0.9% of any amount above $6,000

The total discount is capped at $500 per return.

When are Sales Tax Returns Due in Maryland? 

Maryland assigns filing frequencies based on business activity, with quarterly filing as the default starting point. Higher-volume taxpayers may be moved to monthly filing.

Return due dates follow a consistent rule: returns are due on the 20th day of the month following the end of the filing period. If the due date falls on a weekend or legal holiday, it shifts to the next business day.

Check out the image below for a breakdown of Maryland’s sales tax filing frequencies: