Skip to content

Maryland sales tax, explained.

Thresholds, rates, taxability, filing schedules, and the Comptroller of Maryland — everything a remote seller needs to know about Maryland, on one page.

Economic nexus threshold
$100,000
Statewide base rate
6%
Transaction threshold
200
BaltimoreColumbiaAnnapolisSilver SpringGermantown
Maryland · major filing jurisdictions
Nexus · Maryland

When you owe sales tax in Maryland.

Maryland uses an OR test for economic nexus — crossing either the dollar threshold or the transaction count on its own is enough to require registration and collection. Physical presence creates the obligation immediately, regardless of sales volume.

Economic nexus
Threshold
$100,000 in gross sales delivered into Maryland, or 200 or more separate sales transactions delivered into the state
Measurement type
Sales OR transactions — exceeding either threshold alone is sufficient to trigger the obligation
Measurement period
Previous or current calendar year
Included
Gross sales into Maryland — exempt sales and resale transactions count toward the threshold; service receipts that are themselves exempt do not
Marketplaces
Marketplace sales count toward your threshold — sales made through Amazon, Shopify-managed markets, or other marketplace facilitators are included in your dollar and transaction totals
Physical nexus
Employees / remote staffOffice or business locationWarehouse · 3PL · FBA inventoryAgents or representativesConstruction or installation sites

Any physical presence in Maryland — including an employee working from home or inventory stored at a third-party fulfillment center — creates nexus from the first sale, with no dollar threshold required.

Rates · Maryland

What you'll collect across Maryland.

Maryland levies a single flat 6% rate with no county or local add-ons, so the rate is the same whether the delivery address is Baltimore, Annapolis, or anywhere else in the state. SaaS carries a separate 3% reduced rate; digital goods are taxed at the full 6%; most services are exempt.

JurisdictionCombined rateTangible propertyDigital goodsSaaSServices
MarylandStatewide rate6%6%6%3%0%
Baltimore6%6%6%3%0%
Columbia6%6%6%3%0%
Germantown6%6%6%3%0%
Silver Spring6%6%6%3%0%
Annapolis6%6%6%3%0%

Maryland is a single-rate state with no local or county sales taxes. The 3% rate applies specifically to digital advertising services, computer services, and cloud-based (SaaS) software. Rates verified as of June 11, 2026.

Need the exact rate for one address or invoice? Our calculator confirms the Maryland rate for any address — including which tier applies for SaaS versus tangible goods.

Open the sales tax calculator
Taxability · Maryland

Is your product taxable here?

Maryland is one of the few states that taxes both digital goods and SaaS — though SaaS carries a reduced 3% rate rather than the standard 6%.

Product categoryStatusWhat to know
Tangible personal propertyTaxablePhysical goods delivered into Maryland are taxed at 6%, regardless of the delivery address.
SaaS & cloud softwareTaxableRemotely-accessed software is taxable in Maryland for both B2B and B2C sales. The applicable rate is 3%, not the standard 6%.
Digital goodsTaxableElectronically delivered products — including downloaded software, e-books, and digital audio or video — are taxable at 6%.
Professional servicesNot taxableConsulting, legal, accounting, and similar professional services are exempt from Maryland sales tax.
Bundled hardware + softwarePartialThe hardware portion is taxable at 6%; separately-stated SaaS may qualify for the 3% reduced rate. Itemize your invoices to apply the correct rate to each component.
Shipping & deliveryPartialDelivery charges are generally taxable in Maryland when they are part of the sale of a taxable item; separately stated delivery of an exempt item may be exempt.
Filings · Maryland

Filing schedules and due dates.

The Comptroller of Maryland assigns your filing frequency based on your expected sales and use tax liability. Returns must be filed for every assigned period — even when no tax is due.

FrequencyReturnDue dateWho it applies to
MonthlyMost commonMaryland Sales and Use Tax Return (Form 202)20th of the month following the reporting periodSellers with higher monthly tax liability, as assigned by the Comptroller
QuarterlyMaryland Sales and Use Tax Return (Form 202)20th of the month following the close of the quarterSellers with moderate tax liability — the typical assignment for many remote sellers
Semi-annuallyMaryland Sales and Use Tax Return (Form 202)20th of the month following the close of the semi-annual periodSellers with lower tax liability, as assigned
AnnuallyMaryland Sales and Use Tax Return (Form 202)January 20 for the prior calendar yearSmall sellers with minimal taxable sales, as assigned by the Comptroller

Crossed the threshold, or about to?

A Commenda expert will review your Maryland exposure, register you with the Comptroller of Maryland, and take over the filing calendar — usually within a week.

The state authority

Comptroller of Maryland — the state tax office.

The Comptroller of Maryland administers all sales and use tax activity through Maryland Tax Connect, the state's online portal. One account covers registration, filing, and payment for sales and use tax.

marylandtaxes.gov — Sales and Use Tax

Registration requires a Tax Portal username and password. Have your business entity details, Federal EIN, and projected Maryland sales figures ready.

What you can do there
  • Register for a sales and use tax license

    Registration is handled through Maryland Tax Connect. Out-of-state sellers register the same way as in-state businesses.

  • File returns and pay

    Form 202 returns and payments are filed through Maryland Tax Connect — ACH and other electronic payment methods are accepted.

  • Confirm your product's rate

    Maryland's flat structure means one rate statewide, but verifying whether your product falls under the 3% SaaS tier or the 6% standard tier matters.

  • Verify a resale certificate

    Confirm a buyer's Maryland sales tax exemption certificate is valid before honoring the exemption on a transaction.

Exposure & exemptions · Maryland

If you're behind, or your buyers are exempt.

Back-period exposure & voluntary disclosure

Maryland offers a voluntary disclosure program for out-of-state sellers who come forward before the Comptroller contacts them.

Lookback
3 years under a VDA — exposure can extend further if the state initiates contact first
Penalties
Typically waived under the voluntary disclosure program
Interest
Still due on unpaid tax — interest relief is not a standard benefit of the program
Unfiled returns
No statute of limitations on periods where no return was filed

Exemption certificates accepted

Collect a valid certificate at the time of sale and retain it — the burden of proof for an exempt sale rests with the seller.

Resale
Maryland Sales and Use Tax Exemption Certificate (Form ST-206) or equivalent documentation showing a valid Maryland sales tax license number
Multi-state
MTC Uniform Sales and Use Tax Exemption Certificate is accepted; Maryland is not a member of the Streamlined Sales Tax (SST) program
Nonprofit / government
Qualifying nonprofit organizations and government entities may present a Maryland exemption certificate; verify the certificate is current and applicable
Manufacturing & R&D
Qualifying manufacturing and research-and-development equipment purchases may be eligible for exemption; consult the Comptroller's guidance for applicable product categories

FAQ · Maryland

Maryland questions, answered.

The questions remote sellers ask us most about Maryland.
Read our FAQ library

Yes. Maryland taxes remotely-accessed software (SaaS) for both B2B and B2C sales, but at a reduced rate of 3% rather than the standard 6% that applies to tangible personal property and digital goods.

Yes. Maryland's economic nexus test is an OR rule: you must register once you exceed $100,000 in gross sales delivered into the state or complete 200 or more separate sales transactions — whichever happens first. You do not need to exceed both.

Yes. Maryland taxes electronically delivered digital products — including downloaded software, e-books, digital audio, and digital video — at the standard 6% rate.

Yes. Sales made through a marketplace facilitator such as Amazon or Etsy count toward your Maryland dollar and transaction thresholds, even though the marketplace collects and remits the tax on those transactions.

No. Maryland levies a single flat 6% statewide rate. There are no county, city, or district add-on taxes. The rate is the same regardless of where in Maryland the product is delivered.

Returns are due by the 20th of the month following the close of the reporting period. The Comptroller assigns your filing frequency — monthly, quarterly, semi-annual, or annual — based on your estimated tax liability. Zero-tax returns must still be filed.

Under a voluntary disclosure agreement with the Comptroller, the lookback is typically three years. If the state contacts you before you disclose, you lose access to the program and may face a longer exposure period plus penalties.

Yes. Commenda monitors your Maryland exposure, registers you with the Comptroller, applies the correct rate on every transaction — including the 3% SaaS tier — and files each return on schedule. Book a call to see it on your own data.

United States

Sales tax, state by state.

* No state-level sales tax. Alaska's local jurisdictions still enforce economic nexus through the ARSSTC.