You cannot legally collect Maryland sales tax until you register first. Charging the state’s 6% tax without a license exposes your business to penalties and back taxes. In Maryland the sales tax permit is officially called the Sales and Use Tax License. The Comptroller of Maryland issues it through the Combined Registration Application (CRA). Maryland’s sales and use tax guidance confirms the 6% rate and the license requirement.
This guide is for new Maryland business owners and for remote or marketplace sellers. It covers who must register, how to file the CRA, what it costs, how long it takes, and what happens next.
Maryland Sales and Use Tax License: quick facts
| Detail | Fact | Source |
|---|---|---|
| Official name | Sales and Use Tax License | Comptroller of Maryland; Maryland Business Express (Taxes and Insurance) |
| Issuing agency | Comptroller of Maryland | Comptroller of Maryland |
| Registration fee | $0, and no renewal fee | Comptroller of Maryland, Combined Registration Application |
| State tax rate | 6%, flat statewide, no county or city add-ons | Comptroller Business Tax Tip #3; Tax-General Article §11-104 |
| Economic nexus threshold | $100,000 in gross revenue OR 200 separate transactions | COMAR 03.06.01.33 |
| Economic nexus effective date | October 1, 2018 | COMAR 03.06.01.33; Comptroller Sales and Use Tax Alert (Sept 2018) |
| Marketplace facilitator law effective date | October 1, 2019 | Maryland House Bill 1301 (2019); Comptroller Sales and Use Tax Alert (Sept 2019) |
| Processing time | Online: a few business days. Paper: several weeks. | Comptroller of Maryland |
| Where to apply | Combined Registration Application on Maryland Tax Connect, reached via Maryland Business Express | Maryland Business Express (Taxes and Insurance) |
What Is a Sales Tax Permit in Maryland?
A Maryland sales tax permit, officially the Sales and Use Tax License, authorizes a business to collect the state’s 6% sales and use tax from customers and remit it to the Comptroller of Maryland. Maryland has charged this tax since 1947, per Comptroller Business Tax Tip #3. Unlike Virginia, Pennsylvania, and West Virginia, Maryland adds no county or city sales tax.
The 6% rate applies statewide with no local layers, which simplifies compliance for multi-jurisdiction sellers. Maryland sets a few rates above 6% in statute, under Tax-General Article §11-104. Digital products and digital codes are taxable, which matters for software-as-a-service (SaaS) and digital-goods sellers.
| Category | Rate | Source |
|---|---|---|
| General rate (goods, taxable services) | 6% | Comptroller Business Tax Tip #3; Tax-General §11-104 |
| Digital products and digital codes | 6% (taxable since March 14, 2021) | Maryland House Bill 932 (2021) |
| Alcoholic beverages | 9% | Tax-General §11-104; Business Tax Tip #8 |
| Short-term passenger vehicle rentals | 11.5% (23 cents per $2) | Tax-General §11-104; Business Tax Tip #8 |
| Short-term truck rentals | 8% | Business Tax Tip #8 |
Who Is Required to Register for Sales Tax in Maryland?
Anyone selling taxable goods or services in Maryland must register, whether through physical presence or by crossing the economic nexus threshold. This includes in-state shops, remote sellers, and many marketplace sellers. Businesses below the threshold may register voluntarily to issue resale certificates or to reassure business-to-business (B2B) customers.
What Triggers Physical Nexus in Maryland?
Physical nexus in Maryland comes from any in-state footprint: a store, office, or warehouse; employees, salespeople, or agents; inventory stored in the state; or delivery in your own company vehicles. Hiring even one Maryland employee creates nexus. Inventory in an Amazon fulfillment center in Maryland can also trigger it for Fulfillment by Amazon (FBA) sellers.
Registration and taxability are separate questions. A presence can create nexus even when your specific product is not taxable, so review both. Commenda’s US nexus guide tracks how presence creates exposure across states.
What Is Maryland’s Economic Nexus Threshold?
Maryland’s economic nexus threshold is $100,000 in gross revenue OR 200 or more separate transactions delivered into the state in the current or previous calendar year, per COMAR 03.06.01.33. It took effect October 1, 2018, after South Dakota v. Wayfair, Inc. (2018). Cross either threshold and you must register, even with no physical presence.
Maryland has NOT repealed the 200-transaction prong as of 2026, per the current COMAR 03.06.01.33 text. Sellers arriving from states that dropped the transaction count often assume Maryland did too. Monitor your Maryland sales against both triggers. The Maryland sales tax guide keeps these threshold details current.
Do Marketplace Sellers Need Their Own Maryland Permit?
Maryland requires marketplace facilitators like Amazon, Etsy, eBay, and Walmart Marketplace to collect and remit sales tax for their third-party sellers, effective October 1, 2019, under Maryland House Bill 1301 (2019). If every Maryland sale runs through a collecting facilitator, you may not need your own license.
Sell through your own website too, and you must register for those direct sales. Confirm the platform actually collects Maryland tax before you rely on it. Mixed sales channels almost always require your own license.
How Do You Register for a Sales Tax Permit in Maryland? (Step-by-Step)
You register free of charge through the Comptroller’s Combined Registration Application, now filed on the Maryland Tax Connect portal, which you reach through Maryland Business Express. First-time online applications are typically processed within a few business days. Maryland Business Express is the state’s business-formation hub, not the sales tax application itself.
The legacy Combined Registration Online at interactive.marylandtaxes.gov closed to new filings in January 2024. Registration moved to Maryland Tax Connect, per the Comptroller’s own portal notice.
- Get a FEIN first. A federal employer identification number (FEIN) from the IRS is a prerequisite, unless you are a sole proprietor applying for a Sales and Use Tax License only and have no FEIN, who may use a Social Security Number (SSN).
- Gather business details: legal name, entity structure, start date, NAICS code, and projected sales.
- Open the Combined Registration Application through Maryland Tax Connect and begin a new registration (first-time sales and use tax applicants).
- Complete and submit the application. Accuracy prevents delays.
- Receive your license, then set up filing access in Maryland Tax Connect.
You can register several account types on one online application. Some accounts and situations still require paper.
| Register online (CRA on Maryland Tax Connect) | Requires the paper application |
|---|---|
| Sales and use tax license | Alcohol tax license |
| Use tax account | Tobacco tax license |
| Admissions and amusement tax | Motor fuel tax account |
| Income tax withholding | Sales and use tax exemption certificates |
| Tire recycling fee | Adding sales and use tax to an existing or consolidated account |
| Transient vendor license | |
| Unemployment insurance |
Source: Comptroller of Maryland, Combined Registration Application (CRA entrance page). For the paper route, fax the form to (410) 260-7908 or mail it to Comptroller of Maryland, Revenue Administration Center, 110 Carroll Street, Annapolis, MD 21411-0001.
What Information Do You Need to Register?
Have this ready before you start: legal business name and structure, FEIN (or SSN for sole proprietors), business address and start date, responsible party contact, NAICS code, projected monthly gross and taxable sales, and product descriptions. Your projected sales matter because the Comptroller of Maryland uses them to set your filing frequency.
Do I Need a NAICS Code for a Maryland Sales Tax Permit?
The Combined Registration Application collects your six-digit NAICS (North American Industry Classification System) code as part of your business profile. Look yours up in advance with the U.S. Census Bureau NAICS search. Have it ready before you start so a missing code does not stall your application.
How Much Does It Cost to Register for a Sales Tax Permit in Maryland?
It costs $0. Maryland charges no registration fee and no renewal fee for the Sales and Use Tax License, per the Comptroller of Maryland. A free license does not mean a free business launch, though.
Other accounts on the same Combined Registration Application, such as a transient vendor license, and business-formation steps like an LLC filing or trade name registration, can carry their own fees. Budget for those separately.
How Long Does It Take to Get a Maryland Sales Tax Permit?
Online applications through the Combined Registration Application on Maryland Tax Connect are typically processed within a few business days, per the Comptroller of Maryland. Paper or fax applications mailed to Annapolis can take several weeks. Errors and incomplete information cause delays, so review every field before you submit.
What Happens After You Register?
You collect 6% on taxable sales, file returns on the schedule the Comptroller of Maryland assigns, and remit on time. You manage the account through the Maryland Tax Connect portal. The Comptroller sets your filing frequency by sales volume and starts most new accounts on a quarterly schedule.
Quarterly returns are due the 20th of the month after the quarter ends, per the Comptroller of Maryland. If the 20th falls on a weekend or legal holiday, the due date moves to the next business day. The Comptroller may reassign you to monthly, semiannual, or annual filing as your volume changes. You must file a zero return even in periods with no sales to keep the account in good standing.
How Commenda Helps With Maryland Sales Tax Registration
Maryland registrations are often driven by a single change, like adding one employee or crossing the $100,000 threshold. Commenda’s global indirect tax software tracks your physical and economic nexus across every state, handles registrations like Maryland’s Combined Registration Application, and files your returns on schedule. Add Maryland to an existing multi-state footprint and your saved company details carry over, so setup is short.
Check your exposure with the US nexus exposure guide and the Maryland sales tax guide for threshold detail, and use the sales tax calculator for rate lookups. Book a demo to get a free assessment of your nexus exposure in Maryland and every other state.
