Maryland's uniform 6% rate with no local add-ons is supplemented by a 9% tax on alcoholic beverages — one of the higher alcohol tax rates in the Mid-Atlantic. Maryland is notable for exempting both groceries AND most clothing from sales tax (a rare combination), and offers two annual tax holidays including a popular back-to-school week.
Maryland sales tax overview
| Component | 2026 Rate |
|---|---|
| State sales tax | 6.00% |
| Avg local add-on | 0.000% |
| Avg combined | 6.00% |
| Maximum combined | 6.00% |
Note: Maryland has no local sales tax. 9% rate on alcoholic beverages.
Maryland sales tax by city
Combined state + local sales tax rates for major cities in Maryland:
| City | Combined Rate |
|---|---|
| Baltimore | 6.00% |
| Frederick | 6.00% |
What's exempt in Maryland
Groceries
Exempt from Maryland state sales tax. Local jurisdictions may still tax.
Clothing & footwear
Taxed at standard rate.
Prescription drugs
Exempt from sales tax (typical across most states).
Maryland sales tax holidays
During a sales tax holiday, qualifying items are exempt from Maryland sales tax. Some local jurisdictions may opt out — check with retailers near you.
Back-to-School (Shop Maryland Tax-Free Week)
2nd Sunday of August through Saturday
Clothing & footwear ≤$100, backpacks ≤$40
Energy Star (Shop MD Energy Weekend)
President's Day weekend
Energy Star appliances
How Maryland sales tax is calculated
Sales tax in Maryland is calculated by multiplying the pre-tax purchase price by the applicable combined rate. The formula is simple:
Sales Tax = Purchase Price × 6.00% (avg combined)
Total = Purchase Price + Sales Tax
The exact rate depends on where the purchase occurs — the state base rate (6.00%) plus any local city or county add-ons. Maryland does not allow local sales taxes — the rate is uniform statewide at 6.00%.
Quick calculation examples at average rate 6.00%:
$100 item
$6.00 tax
$106.00 total
$250 item
$15.00 tax
$265.00 total
$500 item
$30.00 tax
$530.00 total
$1,000 item
$60.00 tax
$1060.00 total
Additional tax-free items in Maryland
Beyond the standard exemptions, Maryland also provides sales tax relief on these categories:
Exemptions may have conditions. Always verify with the Maryland Department of Revenue for complete rules.
Maryland sales tax in context: rates, history, and neighbors
Maryland's uniform 6% statewide sales tax (no local add-ons) has been stable since 2008. The 9% alcoholic beverage tax applies to beer, wine, and spirits — sold at retail or in restaurants/bars. Maryland exempts both groceries AND most clothing from sales tax (only a handful of states exempt both). Maryland's two annual tax holidays — Shop Maryland Tax-Free Week (back-to-school, mid-August) and Shop Maryland Energy Weekend (Energy Star appliances, President's Day) — provide additional relief. Compared to neighbors: Pennsylvania (~6.34% combined), Delaware (0%), Virginia (~5.75% combined), DC (6%), West Virginia (~6.58%) — Maryland's 6% is in line with the Mid-Atlantic average. Maryland's lack of local sales tax is unusual for a state of its size and population — most states with 6+ million residents have layered local taxes.
Online shopping & Maryland sales tax
Maryland requires remote sellers with $100,000+ or 200+ Maryland transactions to collect Maryland sales tax. Maryland also taxes certain digital goods — downloaded music, software, and e-books at 6%. Streaming services like Netflix and Spotify are taxable in Maryland. Marketplace facilitators collect Maryland tax on all third-party transactions.
Use Tax reminder: If you purchase taxable goods online from a seller who does NOT collect Maryland sales tax, you technically owe Use Tax — the same rate as sales tax, reportable on your Maryland state tax return. Use Tax enforcement on consumers is rare but the obligation exists for significant purchases.
How much Maryland sales tax on common purchases?
Using Maryland's average combined rate of 6.00%:
| Purchase | Price | Sales Tax | Total |
|---|---|---|---|
| Grocery cart | $150 | Exempt | $150.00 |
| Clothing / shoes | $120 | $7.20 | $127.20 |
| Prescription drug | $80 | Exempt | $80.00 |
| Smartphone | $999 | $59.94 | $1058.94 |
| Laptop / tablet | $1,299 | $77.94 | $1376.94 |
| New car ($35,000) | $35,000 | $2100.00 | $37100.00 |
| Home appliance | $1,500 | $90.00 | $1590.00 |
| Restaurant meal | $60 | $3.60 | $63.60 |
Based on Maryland's average combined rate of 6.00%. Exact tax depends on city/county. Use our calculator above for specific locations and amounts.
Collecting sales tax in Maryland: business guide
If you sell goods or taxable services to Maryland customers, here's what you need to know:
- Registration: Register for a Maryland sales tax permit/license through the Maryland Department of Revenue before making your first taxable sale. Most states process registrations online within a few days.
- Economic nexus (online sellers): If you have $100,000+ in Maryland annual sales or 200+ transactions, you must collect Maryland sales tax even without a physical presence in the state — per South Dakota v. Wayfair (2018). The rate is uniform at 6.00% statewide.
- Destination vs origin sourcing: Maryland uses destination-based sourcing for most sales — the tax rate where the buyer receives the goods applies. Always use the customer's delivery address to determine the rate.
- Filing frequency: Frequency depends on your Maryland sales volume — monthly for high-volume sellers, quarterly or annually for low-volume sellers. Check with the Maryland Department of Revenue for your specific filing schedule.
- Marketplace sales: If you sell through Amazon, Etsy, eBay, or similar platforms, the marketplace is required to collect and remit Maryland sales tax on your behalf — you don't need to collect it separately on marketplace transactions.
- Resale certificates: Businesses purchasing goods for resale can provide a Maryland resale certificate to suppliers to avoid paying sales tax on wholesale purchases. Keep copies of all resale certificates for audits.
Streamlined Sales Tax (SST): Maryland is not currently a member of the Streamlined Sales Tax (SST) Agreement — check Maryland Department of Revenue for filing specifics.
Maryland-specific business compliance details
Maryland businesses register with the Comptroller of Maryland at marylandtaxes.gov for a Sales and Use Tax license (no fee). Filing frequency: monthly for $15,000+/year tax, quarterly for $1,500-$15,000, semi-annually for under $1,500. Out-of-state sellers with $100,000+ in Maryland sales (or 200+ transactions) must collect Maryland tax (economic nexus, since October 2018). Marketplace facilitators collect Maryland tax. Maryland was an early adopter of digital goods taxation and taxes streaming services, downloaded software, and SaaS subscriptions. The 2021 Digital Advertising Tax (a unique Maryland tax on digital ad revenue from large platforms) faces ongoing legal challenges. Penalties: 10% of unpaid tax + interest. The uniform 6% rate makes Maryland one of the simpler states for sales tax compliance.
Maryland sales tax frequently asked questions
Does Maryland really exempt both groceries AND clothing from sales tax?
Yes — Maryland is one of only a handful of states that exempts both categories. Unprepared groceries (produce, meat, dairy, packaged foods) are fully exempt from Maryland's 6% sales tax. All clothing and apparel is also exempt — unlike states like Connecticut and Massachusetts that only exempt clothing under certain price thresholds. This makes Maryland relatively consumer-friendly for everyday necessities.
When is Maryland's back-to-school tax holiday?
Maryland's 'Shop Maryland Tax-Free Week' runs for 8 days starting on the 2nd Sunday of August. Clothing and footwear under $100 per item are exempt from Maryland's 6% sales tax. Backpacks under $40 are also exempt. Unlike some states, Maryland's holiday does not include electronics or school supplies — only clothing and qualifying accessories. Both state and local jurisdictions honor the exemption (though Maryland has no local sales tax anyway).
What is the sales tax rate on alcohol in Maryland?
Maryland taxes alcoholic beverages at 9% — significantly above the standard 6% general rate. This applies to beer, wine, and spirits sold in liquor stores, bars, and restaurants. Combined with federal alcohol excise taxes, Maryland alcohol prices reflect multiple layers of taxation. The 9% rate applies uniformly statewide — no local variations since Maryland has no local sales tax.