Navigating Sales Tax in Maryland

This guide provides an overview of Sales Tax in Maryland, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Maryland.

Last Updated: May 2025

2010

digital products such as e-books and streaming became subject to sales and use tax.

Maryland at a glance.

State

Maryland

Tax Rate Range

No local sales tax

Economic Nexus Threshold

$100,000 in gross revenue or 200 transactions

Filling Deadlines

20th of the month following the reporting period

Is SaaS Taxable?

Yes - subject to specifics

Base Tax Rate:

6%

When should your
business collect Sales
Tax in Maryland?

A business must begin collecting Maryland sales tax when it establishes physical or economic nexus. Once nexus is met, the business must register through Maryland Tax Connect and begin collecting tax on Maryland-destined transactions starting the first day of the next month.

Maryland physical sales tax nexus.

A business establishes physical nexus in Maryland when it maintains any physical presence or in-state selling activities.

Sales tax physical nexus checklist for Maryland

The following conditions might establish a physical nexus in Maryland:

Permanently or temporarily maintaining or occupying a place of business

Having an agent, canvasser, representative, or salesperson in Maryland

Entering the state regularly to provide services

Regularly using vehicles to sell or deliver products

Which services are taxable in Maryland?

Taxable services are included in determining nexus.

Any service treated by Maryland as taxable must be included in measuring exposure.

Agent or representative-provided services performed in the state create nexus.

In Maryland, taxable services count toward economic nexus.

Maryland sales tax information:

Maryland is destination-based, meaning the tax is calculated using the rate at the customer’s delivery location.

Tangible personal property and taxable services are subject to economic nexus standards.

Register through Maryland Tax Connect, using the path shown in the PDF. Businesses must have an FEIN, provide NAICS code, start date, and business structure, and may attach a POA. The registration fee is $0, and approval typically takes 5–7 days.

Once registered, the seller collects tax at the destination rate (Maryland uses a single statewide rate), issues invoices accordingly, maintains documentation, and files returns via Maryland Tax Connect.

Sales Tax return due dates explained.

Maryland's due date is the 20th of the month following the period. Filing frequency is assigned when registering and depends on projected sales volume. Returns are filed through MDTaxConnect, and paper coupons may be requested. Vendor discounts are not mentioned in the PDF, and returns must be filed even if no tax is due unless the account has been officially closed.

FAQs

Does Maryland tax digital products?

Yes. Maryland taxes digital goods such as streaming, downloads, e-books, and SaaS-like services.

Is shipping taxable in Maryland?

Yes. Shipping is taxable when included in the sale of taxable goods; separately stated shipping may still be taxable depending on circumstances.

Do marketplace facilitators have to collect Maryland sales tax?

Yes. Maryland requires marketplace facilitators to collect and remit including for remote sellers.

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Navigating Sales Tax in Maryland

This guide provides an overview of Sales Tax in Maryland, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Maryland.

Last Updated: May 2025

2010

digital products such as e-books and streaming became subject to sales and use tax.

Maryland at a glance.

State

Maryland

Tax Rate Range

No local sales tax

Economic Nexus Threshold

$100,000 in gross revenue or 200 transactions

Filling Deadlines

20th of the month following the reporting period

Is SaaS Taxable?

Yes - subject to specifics

Base Tax Rate:

6%

When should your
business collect Sales
Tax in Maryland?

A business must begin collecting Maryland sales tax when it establishes physical or economic nexus. Once nexus is met, the business must register through Maryland Tax Connect and begin collecting tax on Maryland-destined transactions starting the first day of the next month.

Maryland physical sales tax nexus.

A business establishes physical nexus in Maryland when it maintains any physical presence or in-state selling activities.

Sales tax physical nexus checklist for Maryland

The following conditions might establish a physical nexus in Maryland:

Permanently or temporarily maintaining or occupying a place of business

Having an agent, canvasser, representative, or salesperson in Maryland

Entering the state regularly to provide services

Regularly using vehicles to sell or deliver products

Which services are taxable in Maryland?

In Maryland, taxable services count toward economic nexus.

Taxable services are included in determining nexus.

Any service treated by Maryland as taxable must be included in measuring exposure.

Agent or representative-provided services performed in the state create nexus.

Maryland sales tax information:

Maryland is destination-based, meaning the tax is calculated using the rate at the customer’s delivery location.

Tangible personal property and taxable services are subject to economic nexus standards.

Register through Maryland Tax Connect, using the path shown in the PDF. Businesses must have an FEIN, provide NAICS code, start date, and business structure, and may attach a POA. The registration fee is $0, and approval typically takes 5–7 days.

Once registered, the seller collects tax at the destination rate (Maryland uses a single statewide rate), issues invoices accordingly, maintains documentation, and files returns via Maryland Tax Connect.

Sales Tax return due dates explained.

Maryland's due date is the 20th of the month following the period. Filing frequency is assigned when registering and depends on projected sales volume. Returns are filed through MDTaxConnect, and paper coupons may be requested. Vendor discounts are not mentioned in the PDF, and returns must be filed even if no tax is due unless the account has been officially closed.

FAQs

Does Maryland tax digital products?

Yes. Maryland taxes digital goods such as streaming, downloads, e-books, and SaaS-like services.

Is shipping taxable in Maryland?

Yes. Shipping is taxable when included in the sale of taxable goods; separately stated shipping may still be taxable depending on circumstances.

Do marketplace facilitators have to collect Maryland sales tax?

Yes. Maryland requires marketplace facilitators to collect and remit including for remote sellers.

Related content.

US Sales Tax

12 May 2026

The Myth of Marketplace Protection: What Sellers Misunderstand

The Myth of Marketplace Protection: What Sellers Misunderstand When marketplace facilitator laws first came into effect across US states following the 2018 South Dakota v. Wayfair decision, many sellers breathed a sigh of relief. If platforms like Amazon, Shopify, or Etsy were now legally required to collect and remit sales tax on behalf of third-party sellers, […]

Read More

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6 May 2026

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Read More

e-Invoicing

5 May 2026

Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026

Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026 Continuous transaction controls are changing VAT compliance from a periodic reporting exercise into a real-time data exchange between businesses and tax authorities. Instead of issuing invoices, storing records, and reporting VAT weeks or months later, businesses in many markets now need to create, validate, […]

Read More

US Sales Tax

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Economic Nexus Explained (2026 Update): What European & UK Companies Need to Know After Their First Years Selling in the U.S.

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Read More

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Read More

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Navigating Sales Tax in Maryland

2010

State

Maryland

Tax Rate Range

No local sales tax

Economic Nexus Threshold

$100,000 in gross revenue or 200 transactions

Filling Deadlines

20th of the month following the reporting period

Is SaaS Taxable?

Yes - subject to specifics

Base Tax Rate:

6%

When should yourbusiness collect SalesTax in Maryland?

A business must begin collecting Maryland sales tax when it establishes physical or economic nexus. Once nexus is met, the business must register through Maryland Tax Connect and begin collecting tax on Maryland-destined transactions starting the first day of the next month.

Maryland physical sales tax nexus.

A business establishes physical nexus in Maryland when it maintains any physical presence or in-state selling activities.

Sales tax physical nexus checklist for Maryland

Which services are taxable in Maryland?

Tangible personal property and taxable services are subject to economic nexus standards.

FAQs

Related content.

The Myth of Marketplace Protection: What Sellers Misunderstand

How the VAT IT and Brex Integration Streamlines VAT Reclaim

Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026

Economic Nexus Explained (2026 Update): What European & UK Companies Need to Know After Their First Years Selling in the U.S.

6 Best US Sales Tax Compliance Solutions in 2026: An Honest Comparison

What is Peppol and How Does It Affect Your Business When e-Invoicing

Top Global VAT Solutions in 2026

9 Best e-Invoicing Compliance Solutions

e-Invoicing Requirements for B2B Sellers: What You Need to Have in Place

Quarterly VAT Return Dates: How to Stay Compliant All Year

Navigating Sales Tax in Maryland

2010

State

Maryland

Tax Rate Range

No local sales tax

Economic Nexus Threshold

$100,000 in gross revenue or 200 transactions

Filling Deadlines

20th of the month following the reporting period

Is SaaS Taxable?

Yes - subject to specifics

Base Tax Rate:

6%

When should yourbusiness collect SalesTax in Maryland?

A business must begin collecting Maryland sales tax when it establishes physical or economic nexus. Once nexus is met, the business must register through Maryland Tax Connect and begin collecting tax on Maryland-destined transactions starting the first day of the next month.

Maryland physical sales tax nexus.

A business establishes physical nexus in Maryland when it maintains any physical presence or in-state selling activities.

Sales tax physical nexus checklist for Maryland

Which services are taxable in Maryland?

Tangible personal property and taxable services are subject to economic nexus standards.

FAQs

Related content.

The Myth of Marketplace Protection: What Sellers Misunderstand

How the VAT IT and Brex Integration Streamlines VAT Reclaim

Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026

Economic Nexus Explained (2026 Update): What European & UK Companies Need to Know After Their First Years Selling in the U.S.

6 Best US Sales Tax Compliance Solutions in 2026: An Honest Comparison

What is Peppol and How Does It Affect Your Business When e-Invoicing

Top Global VAT Solutions in 2026

9 Best e-Invoicing Compliance Solutions

e-Invoicing Requirements for B2B Sellers: What You Need to Have in Place

Quarterly VAT Return Dates: How to Stay Compliant All Year

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When should your
business collect Sales
Tax in Maryland?

When should your
business collect Sales
Tax in Maryland?