Maryland's current sales tax rate
Maryland charges a 6% sales tax on most retail purchases. This is the statewide rate that applies in every county and municipality across the state. Unlike some states, Maryland does not allow local jurisdictions to add their own sales tax on top of the state rate, so the rate you pay is the same whether you shop in Baltimore, Annapolis, or a rural county.
The 6% rate has been in place since 1992. It applies to the sale price of an item at the point of purchase — you pay it at checkout when you buy tangible goods. The tax does not explore to services in most cases, which is an important distinction if you are comparing your Maryland tax bill to what you might pay elsewhere.
Key Takeaways
- Maryland's sales tax is 6% statewide with no local add-ons, so the rate is identical in every county.
- Sales tax applies to tangible goods like clothing, electronics, and groceries, but not to most services.
- Certain items are exempt from sales tax, including prescription medications, medical equipment, and some food products.
- Online purchases from out-of-state sellers are subject to Maryland sales tax if the seller has a physical presence in the state or meets federal economic nexus thresholds.
What items are taxed and what are exempt
Most retail goods are subject to the 6% tax. Clothing, shoes, electronics, furniture, toys, and household items all carry the full rate. Groceries are partially taxed: unprepared food you cook at home is exempt, but prepared food, candy, and soft drinks are taxed. If you buy a sandwich from a deli counter, you pay tax. If you buy bread and lunch meat to make a sandwich at home, you do not.
Several categories are completely exempt from Maryland sales tax. Prescription medications and insulin are not taxed. Medical equipment prescribed by a doctor — including wheelchairs, hearing aids, and oxygen equipment — is exempt. Newspapers and magazines are not taxed. Certain agricultural items and equipment used in farming are also exempt if you meet specific criteria.
Services are generally not taxed in Maryland. Haircuts, car repairs, plumbing work, and medical services do not carry sales tax. However, some services that include a tangible product do get taxed. For example, if you have a shirt tailored, the alteration service itself is not taxed, but if the tailor sells you thread or buttons as part of the job, those items may be taxed depending on how the invoice is structured.
How sales tax is calculated on your purchase
The retailer multiplies the pre-tax price by 0.06 to calculate the tax amount, then adds it to your total. On a $100 purchase, you pay $6 in tax for a total of $106. The tax is calculated on the actual sale price, not on a suggested retail price or manufacturer's price.
If you buy multiple items, each item's tax is calculated separately and then added together. Some retailers round the tax on individual items to the nearest cent, which can result in a total that differs slightly from what you would calculate by hand. This rounding is legal and standard practice.
When you return an item, the retailer refunds the tax along with the purchase price. If you paid $106 for a $100 item and return it, you receive $106 back. If you exchange an item for a different one at the same price, no additional tax is owed.
Sales tax on online and out-of-state purchases
Online retailers must collect Maryland sales tax on purchases shipped to Maryland addresses if they have a physical presence in the state — such as a warehouse, office, or store location — or if they meet the federal economic nexus threshold. As of 2024, most large online retailers collect Maryland sales tax automatically at checkout.
If an out-of-state retailer does not collect Maryland sales tax at the time of purchase, Maryland law technically requires you to pay use tax on that purchase when you file your state income tax return. Use tax is the same rate as sales tax (6%) and applies to goods you bring into Maryland or have shipped here. In practice, most individual taxpayers do not report use tax on their returns, but the obligation exists.
Marketplace sellers on platforms like Amazon or eBay are responsible for collecting tax on their sales if they meet the nexus threshold. The platform itself does not collect on behalf of all sellers, so some third-party sellers may not charge tax. Check your receipt to confirm whether tax was included.
Sales tax on vehicles and special purchases
Motor vehicles are subject to Maryland sales tax at the same 6% rate. When you buy a car from a dealer, the tax is calculated on the sale price and collected at the time of purchase. If you buy a used car from a private seller, you still owe sales tax when you register the vehicle with the Maryland Motor Vehicle Administration (MVA). The MVA collects the tax as part of the registration process.
If you trade in a vehicle as part of your purchase, Maryland allows a deduction for the trade-in value. You pay tax only on the net amount — the sale price minus the trade-in value. For example, if you buy a car for $20,000 and trade in a vehicle worth $5,000, you pay tax on $15,000, not $20,000.
Boats and aircraft are also taxed at 6%. Fuel purchases at the pump are taxed, but fuel for agricultural use may be exempt if you hold the proper exemption certificate. Cigarettes and alcohol carry additional excise taxes on top of the 6% sales tax.
Who collects and where the money goes
Retailers collect Maryland sales tax at the point of sale and remit it to the Maryland Department of Revenue. The state does not earmark sales tax revenue for a specific purpose — it goes into the general fund and is allocated through the state budget process. Counties and municipalities do not receive a direct share of sales tax revenue the way they do with property tax.
Retailers are responsible for registering with the Department of Revenue and filing sales tax returns. The filing frequency depends on the retailer's sales volume. High-volume retailers file monthly; lower-volume retailers may file quarterly or annually. Retailers who fail to collect or remit sales tax can face penalties and interest.
Frequently Asked Questions
Do I pay Maryland sales tax if I buy something online from a store outside Maryland?
If the retailer has a physical location in Maryland or meets federal economic nexus rules, they must collect Maryland sales tax on your purchase. If they do not, Maryland law says you owe use tax, though most individuals do not report it. Check your receipt to see if tax was charged.
Is clothing taxed in Maryland?
Yes, all clothing and shoes are subject to the 6% sales tax in Maryland. There is no clothing exemption, even for children's clothing or basic items.
What happens if a retailer does not charge me sales tax?
The retailer is responsible for collecting and remitting the tax to the state. If they fail to do so, that is a violation of state law, but it does not change your legal obligation. You may still owe use tax on your state return, though enforcement for individual purchases is rare.
Are groceries taxed in Maryland?
Unprepared groceries — items you cook at home like raw vegetables, meat, and bread — are not taxed. Prepared foods, candy, soft drinks, and hot foods are taxed at 6%. The key is whether the food is ready to eat or requires preparation.
Do I pay sales tax when I buy a used car from a private person?
Yes. When you register the vehicle with the MVA, you pay 6% sales tax on the purchase price. If you trade in another vehicle, you pay tax only on the net amount after the trade-in value is deducted.