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Sales Tax in Maryland: Complete Guide 2026

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.

Maryland levies a statewide sales and use tax of ~6.00%, with no local sales taxes permitted. This uniform rate applies throughout the state, making Maryland one of the simpler states for sales tax compliance. Maryland also imposes a separate ~9.00% tax on alcoholic beverages sold in restaurants and bars. The state provides important exemptions for unprepared food, prescription drugs, and most clothing, which significantly reduces the effective sales tax burden for everyday consumer purchases.

Maryland Sales Tax Rates (2026)

Component	Rate
State sales and use tax	~6.00%
Local sales tax	None (not permitted)
Combined rate (statewide)	~6.00%
Alcoholic beverages (on-premises)	~9.00%

Uniform Rate

Maryland’s rate is the same everywhere in the state, from the Baltimore metro area to the Eastern Shore to Western Maryland. This uniformity simplifies compliance for businesses operating in multiple locations within the state.

What Is Taxable in Maryland

Taxable Items

Maryland applies its ~6.00% sales tax to:

General merchandise (electronics, furniture, appliances, household goods)
Prepared food and restaurant meals
Soft drinks and candy
Digital goods (digital downloads, streaming services, SaaS) — Maryland enacted a Digital Advertising Tax and expanded digital goods taxation
Alcoholic beverages (at ~9.00% for on-premises sales)
Motor vehicles (titled and registered, ~6.00% titling tax)
Utilities (except residential electricity and natural gas)
Cleaning services (commercial)
Security services
Fabrication and certain custom services

Exempt Items

Maryland exempts several important categories:

Unprepared grocery food: Food for home consumption is exempt
Clothing and footwear: Most clothing is exempt from sales tax (one of a few states with this exemption)
Prescription medications: Fully exempt
Over-the-counter drugs: Exempt
Medical devices and equipment: Exempt
Residential utilities: Electricity and natural gas for residential use
Agricultural supplies: Machinery, equipment, and materials used in farming
Manufacturing materials: Raw materials and machinery used in manufacturing

How Maryland Sales Tax Works

Registration

Businesses selling taxable goods or services in Maryland must register with the Comptroller of Maryland for a Sales and Use Tax License. Registration is free and can be completed online.

Filing and Payment

Annual Tax Collected	Filing Frequency
Under ~$1,200	Annual
~$1,200 — ~$4,800	Quarterly
Over ~$4,800	Monthly

Returns are due on the 20th of the month following the reporting period. Electronic filing is strongly encouraged and required for large filers.

Use Tax

Maryland imposes a use tax at the same ~6.00% rate on taxable purchases where sales tax was not collected. This includes online purchases from out-of-state retailers that did not collect Maryland sales tax. Consumers can report use tax on their Maryland income tax return.

Economic Nexus

Maryland requires remote sellers to collect sales tax if they exceed:

~$100,000 in gross revenue from Maryland sales, or
~200 transactions with Maryland customers

in the current or previous calendar year. Marketplace facilitators must collect on behalf of third-party sellers.

Special Sales Tax Situations

Clothing Exemption

Maryland’s clothing exemption is broad, covering most items designed to be worn on the body:

Item	Exempt?
Shirts, pants, dresses, skirts	Yes
Coats, jackets, outerwear	Yes
Shoes and boots (everyday wear)	Yes
Undergarments and hosiery	Yes
Baby clothing	Yes
Athletic shoes	Yes
Fur clothing	No (taxable at ~6.00%)
Accessories (jewelry, watches, handbags)	No (taxable)
Costumes	No (taxable)
Safety equipment (hard hats, work boots)	Varies

Motor Vehicles

Maryland imposes a ~6.00% titling tax on motor vehicles, collected at the time of registration with the Motor Vehicle Administration (MVA). Trade-in credits are available:

Component	Amount
Vehicle price	~$35,000
Trade-in credit	~$10,000
Taxable amount	~$25,000
Titling tax (~6.00%)	~$1,500

Digital Products and Services

Maryland has expanded its sales tax base to include digital products, which may encompass:

Downloaded or streamed music, movies, and books
Software as a Service (SaaS)
Digital codes and subscriptions
Certain cloud-based services

Maryland also enacted a Digital Advertising Gross Revenues Tax on large technology companies, though this is separate from the sales tax.

Maryland Sales Tax Holidays

Maryland has not traditionally offered broad sales tax holidays, but the state has periodically enacted temporary back-to-school exemption periods. Check the Comptroller’s website each year for any enacted holiday periods and qualifying items.

Comparison to National Average

Metric	Maryland	National Average
State rate	~6.00%	~5.09%
Average combined rate	~6.00%	~7.12%
Groceries exempt	Yes	Varies
Clothing exempt	Yes	Most states tax clothing
Digital goods taxed	Yes	Varies

Maryland’s ~6.00% rate is above the state average but the combined rate equals the state rate (no locals), making it well below the national combined average. The clothing and grocery exemptions further reduce the effective burden.

Comparison to Neighboring States

State	State Rate	Avg. Combined Rate	Clothing Exempt	Groceries Exempt
Maryland	~6.00%	~6.00%	Yes	Yes
Virginia	~4.30%	~5.75%	No	~2.50% reduced rate
D.C.	~6.00%	~6.00%	No (most clothing taxable)	Yes
Pennsylvania	~6.00%	~6.34%	Yes	Yes
Delaware	None	None	N/A	N/A

Tips for Managing Maryland Sales Tax

Leverage the clothing exemption. Maryland exempts most clothing from sales tax, making it advantageous for wardrobe purchases compared to neighboring D.C. and Virginia.
Understand food rules. Unprepared food is exempt, but prepared food (heated, served for immediate consumption) is taxable at ~6.00%.
File electronically. The Comptroller’s online portal makes filing straightforward and reduces processing delays.
Claim the vehicle trade-in credit. Subtracting trade-in value reduces the ~6.00% titling tax on vehicle purchases.
Track digital goods taxation. Maryland’s expanding digital goods tax base means online purchases of digital content may be taxable.
Report use tax. If you purchased taxable items from out-of-state retailers that did not collect Maryland tax, report use tax on your income tax return.
Review exemption certificates. If your business sells to exempt organizations or for exempt purposes, ensure valid exemption certificates are on file.

Key Takeaways

Maryland’s statewide sales tax is ~6.00% with no local add-ons, creating a uniform rate across the state.
Clothing and unprepared grocery food are both exempt, significantly reducing the effective tax burden.
Alcoholic beverages sold in restaurants are taxed at ~9.00%.
The combined rate of ~6.00% is well below the national average of ~7.12%.
Digital goods and services are increasingly taxable under Maryland’s expanded tax base.
Remote sellers must collect if they exceed ~$100,000 in revenue or ~200 transactions.

Next Steps

Federal Income Tax Guide 2026 — How the SALT deduction applies to Maryland sales tax.
State Income Tax Rates Comparison 2026 — Maryland’s overall tax picture.
Tax Bracket Calculator — Estimate your combined income and sales tax burden.
Self-Employment Tax Guide — Sales tax compliance for Maryland businesses.
Find a CPA Near You — Get professional help with Maryland sales tax.