Maryland's statewide sales tax is 6 percent

Maryland charges a flat 6 percent sales tax on most goods and services. This is the rate you see applied at checkout in stores across the state. Some counties add a local tax on top of the state rate, which means your total tax can be higher depending on where you shop.

The 6 percent applies to tangible items — clothing, groceries, electronics, furniture — and to certain services. Food bought at restaurants is taxed, but unprepared food from a grocery store is not. The difference matters when you are budgeting for meals.

Key Takeaways

  • Maryland's base sales tax is 6 percent statewide, but some counties add a local tax that raises the total to 6.25 or 6.5 percent.
  • Unprepared food from grocery stores is not taxed, but restaurant meals and prepared foods are subject to the full rate.
  • Clothing and shoes under $100 per item are exempt from sales tax in Maryland.
  • The tax applies at the point of sale, and the seller is responsible for collecting and remitting it to the state.

Local taxes that add to the state rate

Baltimore City and several counties impose an additional local sales tax on top of the 6 percent state rate. Baltimore City adds 0.5 percent, bringing the total to 6.5 percent. Some other jurisdictions add 0.25 percent, making the total 6.25 percent. The exact local rate depends on which county or city you are in when you make the purchase.

Online purchases are taxed based on the location where the item is delivered, not where you live or where the seller is located. If you order something online and have it shipped to an address in Baltimore City, you pay Baltimore City's 6.5 percent rate. If the same item ships to a county with no local tax, you pay only the 6 percent state rate.

What is and is not taxed

Clothing and shoes under $100 per item are not taxed in Maryland. A shirt that costs $75 is tax-free. A pair of shoes for $99 is tax-free. But a coat that costs $150 is taxed on the full amount. This applies whether you buy in a store or online.

Groceries — unprepared food you cook at home — are not taxed. Milk, bread, vegetables, and meat from a grocery store have no sales tax. But prepared foods are taxed. A rotisserie chicken from the grocery store deli counter is taxed. A sandwich from a restaurant is taxed. A coffee and pastry from a café are taxed.

Prescription medications are not taxed. Over-the-counter medications and vitamins are taxed. Medical equipment and devices vary; some are exempt and others are not, depending on the specific item and how it is classified.

How the tax appears on your receipt

The seller calculates the tax based on the subtotal of your purchase and the tax rate where the sale occurs. On your receipt, you see the subtotal, the tax amount, and the total. The tax is always shown as a separate line so you can see exactly how much you paid.

If you buy multiple items, some taxed and some not, the seller's system applies the tax only to the taxable items. For example, if you buy a $50 shirt (not taxed), a $30 pair of pants (not taxed), and a $20 book (taxed), the tax applies only to the $20 book. The receipt breaks this down so you can verify it is correct.

Tax on services

Most services in Maryland are not subject to sales tax. Haircuts, car repairs, plumbing, and medical services are not taxed. However, some specific services are taxed. Lodging — hotel rooms and short-term rentals — is taxed at the same rate as goods. Parking fees and certain entertainment services may also be taxed depending on the type.

If you are unsure whether a service is taxed, ask the business before you pay. They know the rules for their industry and can tell you whether tax will be added to your bill.

Who collects and pays the tax

The business where you make the purchase is responsible for collecting the sales tax from you and remitting it to the Maryland Department of Revenue. You do not file sales tax yourself as a consumer. The seller handles all of it — they collect it at the register, keep records, and send it to the state on a schedule set by the state.

If a business fails to collect or remit sales tax, that is between the business and the state. As a consumer, you have paid your obligation when you pay the tax at the register.

Frequently Asked Questions

Do I pay sales tax on online purchases from out-of-state sellers?

Yes. If the item is delivered to an address in Maryland, Maryland sales tax applies. The seller is required to collect and remit it, even if the company is based outside Maryland. The tax rate depends on the delivery address — Baltimore City rates apply if it ships there, county rates apply elsewhere.

Are used items taxed when I buy them?

Used items sold by a business are taxed the same as new items. A used car from a dealership is taxed. Used clothing from a thrift store is taxed (unless it is under $100 per item). Items sold between private individuals are not subject to sales tax.

What if the receipt shows the wrong tax amount?

Ask the cashier or manager to recalculate it on the spot. Most errors are caught and corrected immediately. If you notice an error after you leave, contact the store with your receipt and they can issue a refund for the overcharge.

Does Maryland tax groceries differently than other states?

Maryland does not tax unprepared groceries, which is common across many states. The distinction between prepared and unprepared food is where the rules vary most. What counts as "prepared" can differ slightly between states, so check the specific rules if you are comparing to another state.