Maryland Sales Tax: 6% Rate, What Is Taxable and What Is Exempt

Maryland has one statewide sales and use tax rate of 6%, set in Section 11-104 of the Tax-General Article. There are no county or city sales taxes on top of it. Buyers and business owners who have dealt with neighboring jurisdictions that add local rates are often surprised by this. For most sales, the real questions are not about the rate. They are which sales are taxable, which are exempt, and what records you need to keep when you claim an exemption.

This guide covers the 6% rate, the special rates on alcohol and cannabis, how food and clothing are treated, how exemption certificates work, how services and digital products are taxed, and when use tax applies. This is informational content, not legal or tax advice. Sales tax rules have exceptions and depend on the facts of each sale. Confirm your situation with the Comptroller of Maryland at marylandcomptroller.gov, or with a qualified CPA or attorney, before you rely on it.

The Maryland Sales Tax Rate at a Glance

As of October 2026, the Maryland sales tax rate for most sales is 6%. The table below lists the rates that differ from the general rate and the main exemption.

Sale or item	Rate	Notes
Most tangible goods and digital products	6%	The general statewide rate under Section 11-104
Alcohol	9%	6% applies to separately stated non-alcohol charges under Section 11-104(g)
Cannabis	12%	Effective July 1, 2025, up from 9% under Chapter 604 of the Acts of 2025
Data services, information technology services, software publishing	3%	Effective July 1, 2025, for NAICS 518, 519, 5132 and 5415
Food for home consumption from grocery vendors	Exempt	Exemption under Section 11-206, with exclusions covered below
Local sales tax	None	Maryland does not levy county or city sales taxes

Because there are no local rates, a sale in Baltimore, Frederick, Salisbury or Cumberland is taxed at the same rate, as long as the item is taxable and no exemption applies.

How to Calculate Maryland Sales Tax

Maryland does not require a specific calculator for this math, and any basic calculator works. Multiply the taxable sale price by the applicable rate, then add the result to the price. The examples below use the rates listed above.

• Taxable goods: A $100 purchase at 6% carries $6.00 of tax, for a total of $106.00.
• Alcohol: A $20 bottle of wine at 9% carries $1.80 of tax, for a total of $21.80.
• Cannabis: A $50 retail purchase at 12% carries $6.00 of tax, for a total of $56.00.
• Covered services: A $1,000 information technology service at 3% carries $30.00 of tax, but only if the service falls within one of the covered categories.

When one invoice mixes taxable and exempt items, tax applies only to the taxable lines. Itemize them on the invoice so the rates can be applied correctly. A single lump-sum charge can make it harder to prove which portion is taxable.

Maryland Sales Tax on Food

Food for home consumption sold by grocery vendors is exempt from sales tax under Section 11-206. The exemption has important exclusions. The following remain taxable even when sold by a grocery:

• Prepared food, such as hot food from a deli counter, rotisserie chicken served hot, or a sandwich made to order
• Soft drinks, including sodas and other sweetened beverages sold in the same category
• Candy
• Alcohol, which is taxed at 9% as described above

Restaurant meals, takeout and catered food are taxable as prepared food. If you sell food from a business, check whether the item fits the exemption before you set your tax treatment. Borderline products should be confirmed with the Comptroller.

Maryland Sales Tax on Clothing

Based on our research, we did not find an exemption that covers clothing. Clothing is therefore generally treated as taxable at the 6% general rate. We have not fully verified this against current Comptroller guidance, so confirm it with the Comptroller of Maryland before you set prices or file returns based on it.

Maryland Sales Tax Exemption and Exemption Certificates

An exemption depends on what is being bought and why. The most common example for businesses is a purchase of goods that will be resold to a customer. The seller generally needs documentation from the buyer showing that the exemption applies, which is usually an exemption certificate.

Exemption certificates change over time, so request the current form and instructions from the Comptroller rather than reusing an old copy. Whatever form you use, keep a record for every exempt sale that shows:

1. The buyer's name, address and business or account information
2. The date of the sale and a description of the items
3. The exemption claimed and the buyer's signed certificate
4. The invoice or receipt showing that tax was not charged

If the paperwork is missing, the Comptroller can treat the sale as taxable. The seller may then owe the tax. Keep these records for as long as the Comptroller's record retention rules require, and confirm that period with the agency.

Getting a Sales and Use Tax License

If your business sells taxable goods, you will need a Sales and Use Tax License from the Comptroller. It is free and is obtained through the Combined Registration Application in Maryland Business Express at businessexpress.maryland.gov. The license is also a prerequisite for a trader's license, which is issued by the Clerk of the Circuit Court in your county. The Clerk cannot issue a trader's license if the applicant owes personal property tax or has missing SDAT filings. Growers and manufacturers are exempt from the trader's license requirement, but they should confirm their sales tax obligations with the Comptroller.

Maryland Sales Tax on Services

Maryland does not tax most services. The main exception is a 3% rate that took effect on July 1, 2025, for data services, information technology services and software publishing services. These fall under NAICS codes 518, 519, 5132 and 5415. A separate guide on Maryland sales tax on services covers the rules in more detail.

Digital products are taxed at the 6% general rate. The line between a digital product and a covered service can be difficult to draw, especially for software and online subscriptions. Comptroller Technical Bulletin 56 explains how the 6% digital product rate and the 3% services rate are divided. Read it before you decide how to tax a digital product or service, and confirm your treatment with the Comptroller if the product mixes both features.

Maryland Use Tax: When You Owe It Without a Receipt

Maryland use tax applies to tangible property that you use, store or consume in Maryland when sales tax was not charged at the time of purchase. Common examples include equipment bought from an out-of-state seller that did not collect Maryland tax, or goods bought online from a retailer that did not register in Maryland.

The use tax rate is the same 6% statewide rate. For example, if you buy $500 of equipment from an out-of-state vendor that charged no Maryland tax, you owe $30.00 of use tax on that purchase. Use tax is a self-reported obligation, so the Comptroller expects buyers to report it on their returns. Confirm how to report it, and which return it goes on, with the Comptroller of Maryland.

Common Maryland Sales Tax Mistakes

• Adding a local tax. Maryland has no county or city sales tax, so the only rates to apply are the statewide rates above.
• Charging 6% on alcohol. Alcohol is taxed at 9%, with 6% only on separately stated non-alcohol charges.
• Exempting all groceries. Prepared food, soft drinks, candy and alcohol are excluded from the grocery exemption.
• Skipping use tax. Out-of-state purchases for use in Maryland can still owe 6% use tax.
• Keeping no exemption records. Without a certificate and invoice, an exempt sale can be treated as taxable.
• Bundling charges. A single lump-sum price can cause the whole invoice to be taxed at the wrong rate.

Next Steps

1. Confirm whether your product or service is taxable, using the rates in this guide as your starting point.
2. Obtain a free Sales and Use Tax License through Maryland Business Express if you sell taxable goods.
3. Request the current exemption certificate form from the Comptroller and set up a record system before your first exempt sale.
4. Review Comptroller Technical Bulletin 56 for digital products and covered services.
5. Check the Comptroller's website at marylandcomptroller.gov for current rates, forms and filing deadlines before each filing period.

Important Disclaimer

This guide is informational only and is not legal or tax advice. Maryland sales and use tax rules include exceptions and depend on the specific facts of each transaction. Figures marked for confirmation should be checked directly with the Comptroller of Maryland. For complex situations, including multistate sales, large use tax exposure, or questions about how a product is classified, consult a qualified CPA or attorney.