Maryland Sales Tax Rate and What It Covers
Maryland's statewide sales tax is 6 percent. When you buy most goods at a store, that 6 percent gets added to your bill at checkout. Some counties and cities add their own local tax on top of the state rate, so your total can be higher depending on where you shop.
The 6 percent applies to tangible goods — things you can touch and take home. Clothing, groceries, electronics, furniture, and gas all fall under this. Services like haircuts, car repairs, and plumbing are generally not taxed in Maryland, though there are exceptions.
Food bought at a grocery store to cook at home is not taxed in Maryland. But prepared food — restaurant meals, deli items ready to eat, and food from a food truck — is taxed at the full 6 percent rate.
Key Takeaways
- Maryland's base sales tax is 6 percent on most goods, but some counties add 1 to 3 percent more depending on location.
- Groceries you cook at home are not taxed, but prepared food and restaurant meals are taxed at the full rate.
- Clothing and shoes are not taxed in Maryland, which is one of the few states with this exemption.
- Services like haircuts and repairs are usually not taxed, but some specific services have their own rules.
- You pay sales tax when you buy something, not when you file taxes — it is added at the register or checkout.
Local Sales Tax Varies by County and City
On top of the 6 percent state tax, Maryland allows counties to add their own local sales tax. This local rate ranges from 0 to 3 percent depending on which county you are in. Baltimore City has its own rate separate from Baltimore County. Some counties have no local tax at all, while others charge the full 3 percent.
This means your total sales tax bill depends on your location. If you shop in a county with no local tax, you pay 6 percent. If you shop in a county with 3 percent local tax, you pay 9 percent total. The cashier or online checkout will show you the exact rate for your address.
If you live near a county line, it can pay to know the tax rates on both sides. Some people cross county lines to make large purchases in lower-tax areas, though this is only practical for big-ticket items.
What Is Not Taxed in Maryland
Maryland has several categories of items that are exempt from sales tax. Clothing and shoes have no sales tax — this is unusual among states and applies to all clothing regardless of price. Groceries for home cooking are not taxed. Prescription medications are not taxed, though over-the-counter medicines are.
Certain services are also exempt. Medical services, dental work, and veterinary care are not taxed. Educational services like tuition and school supplies have exemptions in some cases. If you are buying items for resale as a business, you can use a resale certificate to avoid paying tax at purchase.
Energy used in manufacturing and certain agricultural equipment also have exemptions, though these apply mainly to businesses rather than individual shoppers.
How Sales Tax Works Online and Out of State
When you order something online from a Maryland retailer, Maryland sales tax applies to your order. If you order from an out-of-state retailer, the rules depend on whether that retailer has a physical presence or sales activity in Maryland. Many large online retailers now collect Maryland sales tax on all orders shipped to Maryland addresses, even if the company is based elsewhere.
If an online retailer does not collect Maryland sales tax at checkout, you are technically responsible for paying it yourself through a use tax when you file your state income tax return. In practice, few individuals report this, but it is the law. The tax rate for online purchases follows the same rules as in-store purchases — it depends on your delivery address.
If you order something to be shipped out of state, no Maryland sales tax applies, even if you live in Maryland. The tax is based on the delivery address, not where the buyer lives.
Sales Tax on Specific Items
Some items have their own rules. Alcohol and tobacco products are taxed at the regular sales tax rate, plus they have additional excise taxes on top. Motor vehicles are taxed, but the calculation is different — you pay sales tax on the purchase price, and this is often handled through the Motor Vehicle Administration rather than at the dealership.
Digital goods like e-books, music downloads, and streaming subscriptions are taxed in Maryland. Gasoline is taxed at the pump as part of the price, and the sales tax applies to that total. Lottery tickets are not subject to sales tax.
If you are unsure whether a specific item is taxed, the retailer can tell you at checkout, or you can contact the Maryland Department of Revenue for clarification on unusual items.
Who Collects and Where the Money Goes
The retailer — the store or online company where you buy something — collects the sales tax from you at the point of sale. They then send that money to the Maryland Department of Revenue on a regular schedule, usually monthly or quarterly depending on the size of the business.
The state keeps the 6 percent portion and distributes the local tax portion to the county or city where the sale occurred. This money funds local schools, roads, police, and other public services. Retailers are required by law to collect and remit this tax; if they do not, they can face penalties and back taxes.
Frequently Asked Questions
Do I pay sales tax on used items?
Sales tax applies to used goods sold by a retailer or business, just like new items. If you buy a used car from a dealership, you pay sales tax. If you buy a used item from an individual in a private sale, no sales tax applies — the tax only applies when a business makes the sale.
What is the difference between sales tax and use tax?
Sales tax is collected when you buy something. Use tax is a tax you owe on items you buy out of state or online without sales tax being collected. You are supposed to report and pay use tax on your state income tax return, though most individuals do not. The rate is the same as sales tax.
Can I get a refund of sales tax I already paid?
No. Sales tax is a final tax on the purchase and is not refunded. If you return an item and get your money back, the sales tax is also refunded as part of that return. But you cannot claim a refund of sales tax you paid on items you keep.
Does Maryland tax services like haircuts or car repairs?
Most services are not taxed in Maryland. Haircuts, car repairs, plumbing, and similar services have no sales tax. However, some specific services like certain telecommunications services may be taxed. When in doubt, ask the service provider before you pay.
What county has the lowest sales tax in Maryland?
Several Maryland counties have no local sales tax, so the total is 6 percent statewide. Other counties charge 1, 2, or 3 percent local tax on top of the state rate. Check your county's tax rate with the Maryland Department of Revenue or your local tax office to know your exact rate.