Maryland sales tax is 6% on most retail sales, worked out with a cent bracket set in Tax-General Article section 11-104, as of October 2026. Data, IT and software publishing services are taxed at 3%, alcohol at 9% and cannabis at 12%, and the same section of the statute stops counties and cities from adding a general local sales tax on top.
Most states give you a rate and a long list of local add-ons. Maryland's different. There's one statewide rate for almost everything, a handful of special rates written straight into the statute, and a rule that keeps local governments out of general sales tax. Here's what the law says, section by section, and what it means if you sell in Maryland.
How the Maryland sales tax rate is worked out
The statute doesn't just say 6%. It sets out the exact cents to charge, so every till in the state rounds the same way. For a sale of $1 or more, it's 6 cents for each exact dollar, plus a cent amount for the part of a dollar left over. For sales under $1, the bracket looks like this:
| Taxable price | Tax |
|---|---|
| 20 cents | 1 cent |
| At least 21 cents but less than 34 cents | 2 cents |
| At least 34 cents but less than 51 cents | 3 cents |
| At least 51 cents but less than 67 cents | 4 cents |
| At least 67 cents but less than 84 cents | 5 cents |
| At least 84 cents | 6 cents |
The same cent steps apply to the leftover part of a dollar on bigger sales. So if you're setting up a point of sale system, check it follows the statutory bracket rather than plain rounding. On most sales the difference is a cent or nothing, but on high volumes of small sales it adds up, and it's the bracket the statute sets.
The special Maryland sales tax rates in the statute
Section 11-104 lists a set of rates that differ from the general one. These are the ones most small businesses run into, as written in the statute:
| What's sold | Rate in section 11-104 |
|---|---|
| Data or IT services (NAICS 518, 519 or 5415) and software publishing services (NAICS 5132) | 3% of the taxable price |
| Alcoholic beverages | 9% of the charge |
| Separately stated labour, service or material charges sold with alcohol | 6% |
| Cannabis, fiscal year 2026 onwards | 12% |
| Electronic smoking devices | 20% |
| Vaping liquid in a container of 5 millilitres or less | 60% |
| Tobacco pipes | 12% |
| Mandatory gratuity or service charge for food or drink for a group of more than 10 | 6% |
| Vending machine sales | 6% applied to 94.5% of gross receipts |
| Peer to peer car sharing | 8%, or 11.5% for a fleet of more than 10 vehicles |
| Hotel surcharge in Dorchester County (establishments with at least 380 rooms) | 2.5% |
The 3% line is the one to watch if you run a tech, data or software business. Section 11-101 adds two items to Maryland's list of taxable services: a data or information technology service described under NAICS Sector 518, 519 or 5415, and a system or application software publishing service described under NAICS Sector 5132. The statute also says that if a higher rate could apply to the same sale, the higher rate wins. So a bundle that mixes taxable goods at 6% with a 3% service doesn't automatically drop to 3%.
Manufactured homes and modular buildings have their own rule too. The general rate applies to 60% of the taxable price on the first retail sale of a manufactured home and on the sale of a modular building.
Why Maryland counties can't add their own sales tax
This is the part that makes Maryland simpler than most states. Section 11-102 says a county, city, special taxing district or other local body may not impose any retail sales or use tax, with a short list of exceptions:
- a sales or use tax that was already in effect on January 1, 1971
- a tax on the sale or use of fuels, utilities or space rentals
- a tax on controlled dangerous substances, unless the seller registers and complies under the Criminal Law Article
- a food and beverage tax imposed by a code county under the Local Government Article
In practice that means you don't need a rate lookup by ZIP code for ordinary retail sales in Maryland, which you'd need in states with local add-ons, such as Colorado. It also means you shouldn't assume a local rate exists just because your software has a field for one.
Rates and rules differ elsewhere, as Missouri sales tax shows.
When Maryland sales tax returns are due
Under section 11-502, a vendor files a sales and use tax return, under oath, with the Comptroller on or before the 20th day of the month after the month of the sales. The Comptroller can also set other periods and dates by regulation, including periods when you made no sales at all. The return states your gross proceeds, the taxable price of the sales the tax was worked out on, and the tax due. If you run more than one business, the Comptroller can approve one consolidated return.
Selling in another state? Read Illinois sales tax.
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The vendor credit for filing on time
Maryland pays you a small credit for collecting the tax, but only if your return is on time. Section 11-105 sets it out:
- 1.2% of the first $6,000 of sales and use tax you pay with each return
- 0.9% of the gross tax due under the general rule
- the credit under the general rule can't exceed $500 for each return, and the same $500 total limit applies across a consolidated return
- no credit on tax you owe on your own purchases
It isn't a fortune, but it's the reason to set a reminder well before the 20th. A late return loses it. A sales tax tool can file for you on schedule, and if you buy stock to resell, a resale certificate keeps tax off your own purchases.
A simple Maryland sales tax checklist
- Work out whether what you sell is goods, a taxable service, or one of the special rate items above.
- If you sell data, IT or software services, check the NAICS codes in section 11-101 against what you do.
- Set your till or checkout to the statutory cent bracket, not plain rounding.
- Don't add a local rate for ordinary retail sales.
- File by the 20th of the following month, or on the schedule the Comptroller gives you, to keep the vendor credit.
- If you employ staff in the state, check the Maryland minimum wage rules at the same time.
Related: hotel: guidelines and how to pitch.
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Frequently asked questions
What is the Maryland sales tax rate?
The general Maryland sales tax rate is 6%, applied through the cent bracket in Tax-General Article section 11-104, as of October 2026. Some items have their own rate, such as 3% for data, IT and software publishing services, 9% for alcohol and 12% for cannabis.
Does Maryland have local sales tax?
Not for ordinary retail sales. Section 11-102 stops counties and cities imposing a retail sales or use tax, except for taxes in effect on January 1, 1971, taxes on fuels, utilities or space rentals, and a code county food and beverage tax.
Is software taxed in Maryland?
System and application software publishing services described under NAICS Sector 5132 are taxable services, and section 11-104 taxes them at 3% of the taxable price. If a higher rate could apply to the same sale, the higher rate applies.
When is Maryland sales tax due?
Section 11-502 sets the return date as on or before the 20th day of the month after the month of the sales, unless the Comptroller sets another period for you by regulation.
Do Maryland vendors get a discount for collecting tax?
Yes, if the return is on time. Section 11-105 gives a credit of 1.2% of the first $6,000 of tax on each return and 0.9% under the general rule, with the general credit capped at $500 for each return, as of October 2026.
