Maryland's sales tax rate and what it covers

Maryland's state sales tax is 6 percent. Most counties add a local tax on top of that, ranging from 1 to 3.25 percent depending on where you live. Your total sales tax rate depends on both your state rate and your county rate combined. For example, if you live in Baltimore City, you pay 6 percent state plus 3.2 percent local, totaling 9.2 percent. In Montgomery County, it's 6 percent state plus 2.5 percent local, totaling 8.5 percent.

Sales tax applies to most goods you buy in stores — clothing, electronics, furniture, groceries at checkout, and household items. It does not apply to prescription medications or certain medical equipment. Some counties exempt clothing and footwear from tax, but this varies. The tax is added at the register and included in your final bill.

Key Takeaways

  • Maryland's state sales tax is 6 percent, and your county adds between 1 and 3.25 percent on top of that.
  • Sales tax applies to most goods but not to prescription medications, and some counties exempt clothing from tax.
  • You pay the combined state and local rate at checkout; the amount depends on where you make the purchase, not where you live.
  • Certain items like groceries, prepared food, and services are taxed differently or not at all depending on how they are sold.

County-by-county tax rates in Maryland

Each Maryland county sets its own local sales tax rate within state limits. Baltimore City has the highest combined rate at 9.2 percent. Montgomery County is 8.5 percent. Prince George's County is 8.5 percent. Anne Arundel County is 8 percent. Howard County is 8 percent. Baltimore County is 8.25 percent. Harford County is 7 percent. Cecil County is 7 percent. Talbot County is 8.75 percent. Caroline, Dorchester, Kent, Queen Anne's, Somerset, Wicomico, and Worcester counties are all 7 percent.

The rate you pay is determined by where you make the purchase, not where you live. If you buy something in Baltimore City, you pay Baltimore City's rate even if you live in another county. This matters when you shop near county lines or order online from Maryland retailers.

What is and isn't taxed in Maryland

Taxable items include clothing and shoes (except in counties that exempt them), electronics, furniture, toys, books, and most household goods. Prepared food — meals at restaurants, takeout, and food from delis — is taxed. Groceries you buy raw and cook yourself are not taxed, including produce, meat, dairy, and bread.

Services are generally not taxed in Maryland. Haircuts, car repairs, plumbing, and medical services do not have sales tax added. Prescription medications are not taxed. Over-the-counter medicines and vitamins are taxed. Gasoline is taxed at the pump as part of the fuel tax, not sales tax. Alcohol and tobacco have their own excise taxes in addition to sales tax.

Digital goods — ebooks, music downloads, and streaming subscriptions — are taxed in Maryland. Software and apps are taxed. Rental items like car rentals and equipment rentals are taxed.

How sales tax works for online and mail orders

If you order from a Maryland retailer online or by mail, Maryland sales tax applies based on the retailer's location or the delivery address, depending on the retailer's setup. If you order from an out-of-state retailer and have it shipped to Maryland, you may owe Maryland sales tax if the retailer collects it. Many large retailers now collect Maryland sales tax on all orders shipped to Maryland residents.

If an out-of-state retailer does not collect Maryland sales tax, you are technically responsible for paying it yourself through Maryland's use tax. In practice, most individuals do not report use tax on personal purchases. The use tax exists mainly for business purchases and large transactions.

Sales tax exemptions and special situations

Certain organizations do not pay sales tax. Nonprofits, government agencies, and schools can buy items tax-free if they have a resale certificate or tax-exempt status. Businesses that buy items to resell do not pay sales tax if they provide a resale certificate to the seller.

Some counties exempt clothing and footwear entirely. Baltimore City, Baltimore County, Howard County, Montgomery County, and Prince George's County do not tax clothing. Other counties tax clothing normally. Check your specific county's rules if clothing exemption matters to your situation.

Certain medical equipment and mobility aids may be exempt or taxed at a reduced rate. Prescription medications are always exempt. Durable medical equipment like wheelchairs, walkers, and oxygen equipment may may have access to for exemption depending on the specific item and how it is classified.

How Maryland uses sales tax revenue

The state portion of sales tax (6 percent) goes to Maryland's general fund and supports state services including education, transportation, and public safety. County portions go directly to county governments and fund local schools, roads, police, and other county services. The split between state and county varies, but counties keep their local tax revenue.

Maryland's sales tax rate has remained at 6 percent since 1992. Counties have adjusted their local rates over time based on local budget needs. Some counties have raised their rates to fund schools or infrastructure; others have kept rates stable.

Frequently Asked Questions

Do I pay sales tax on groceries in Maryland?

No, raw groceries are not taxed — produce, meat, dairy, bread, and pantry staples are all tax-free. Prepared food is taxed. This means a rotisserie chicken from the grocery store deli is taxed, but raw chicken from the butcher counter is not. Hot food and ready-to-eat items are always taxed.

Is clothing taxed in Maryland?

It depends on your county. Baltimore City, Baltimore County, Howard County, Montgomery County, and Prince George's County do not tax clothing or shoes. All other Maryland counties tax clothing normally at the combined state and local rate. Check your county's rules before shopping if this affects your budget.

What's the difference between sales tax and use tax?

Sales tax is collected by the seller at the point of sale. Use tax is a tax you owe on items you buy from out-of-state sellers who do not collect Maryland tax. You are supposed to report and pay use tax yourself, but most individuals do not. It mainly applies to business purchases and large transactions.

Do I pay sales tax on services like haircuts or car repairs?

No, services are not taxed in Maryland. Haircuts, plumbing, car repairs, medical visits, and labor are all service-based and do not have sales tax added. Only goods and prepared food are taxed.

What if I buy something online from out of state?

If the out-of-state retailer collects Maryland sales tax, you pay it at checkout. If they do not, you technically owe Maryland use tax on the purchase, but most individuals do not report it. Large retailers now collect Maryland tax on most online orders shipped to Maryland addresses.