Maryland Short-Term Rental Laws: State Tax, County Licenses and 2026 Safety Rules
Maryland Short-Term Rental Laws: State Tax, County Licenses and 2026 Safety Rules
If you plan to rent a house, condo or room to short-term guests in Maryland, the first thing to know is that the state does not issue a short-term rental license. No single statewide permit makes a Maryland vacation rental or Airbnb legal. Your obligations come from three layers: the state sales tax on lodging, a hotel rental tax that some counties and Baltimore City add on top, and whatever license or registration your county or city requires. A new state safety law also took effect on October 1, 2026, and it changes what every host must have inside the unit.
This guide walks through each layer, names the offices to confirm with, and gives you a checklist for how to start an Airbnb in Maryland without skipping a filing.
This guide is informational content, not legal or tax advice. Short-term rental rules change, and some local details must be confirmed directly with the agency that administers them. Talk to a qualified attorney about your lease, insurance and liability, and to a CPA about your taxes before you list a property.
No Statewide Short-Term Rental License
Maryland does not require a state-level license to operate a vacation rental. What the state does require is that you register for sales and use tax if the tax applies to your stays, and that you check with your county or city about local rules. Those local rules vary a great deal. A host in Ocean City, Baltimore City and Garrett County can face three different sets of paperwork, with different offices and different renewal cycles. That is why this guide sorts the requirements by who collects them, not by a single list.
Layer 1: The State Sales Tax on Lodging
Maryland's state sales tax rate is 6%, and the state sales tax applies to lodging rentals. Confirm with the Comptroller of Maryland how the tax applies to the specific stays you plan to offer, since the answer depends on the rental arrangement.
To collect and remit the tax, you need a Sales and Use Tax License. You obtain it through the Comptroller's Combined Registration Application, and the license is free. Start here, because the Clerk of the Circuit Court will not issue a trader's license until the Comptroller registration is in place, and a trader's license is a separate county requirement that applies to businesses that sell goods.
Booking platforms may collect and remit certain taxes on a host's behalf. Ask each platform which taxes it handles for your county and which ones remain your responsibility. Do not assume the platform covers everything.
Layer 2: The Maryland Vacation Rental Tax at the County Level
Many local governments add their own hotel rental or lodging tax on top of the state sales tax. The rates below come from the Department of Legislative Services FY2026 table. Treat them as a starting point, because local rates can change.
| Jurisdiction | Rate in DLS FY2026 table | What to confirm |
|---|---|---|
| Garrett County | 8% | Current rate and the office that collects it |
| Worcester County | 5% | Current rate and the office that collects it |
| Baltimore City | 9.5% | Current rate and the office that collects it |
If your property is in another county, find its line in the DLS table and then confirm the rate with that county. Ask both the Comptroller of Maryland and your county which office collects each tax, because the answer is not always the same office. Build the local rate into your nightly price from day one. A host who learns about the tax after the first guest has booked is stuck absorbing it.
Layer 3: Local Licenses, Registrations and Permits
The local layer varies the most, and it is where most of the Maryland Airbnb license questions come from. Several jurisdictions run their own short-term rental programs with different names and different requirements. Confirm each one with the local office before you accept a booking.
- Baltimore City: an annual short-term rental license.
- Montgomery County: a license administered through the county's Department of Housing and Community Affairs (DHCA).
- Anne Arundel County: a registration.
- Garrett County: a TVRU requirement. Confirm the program name, scope and requirements with Garrett County.
- Ocean City: a rental license.
If your county or city is not on this list, that does not mean no rule applies. Ask the county planning or zoning office whether your property is permitted for short-term rental use at all. A local restriction can end the project before you spend money on furnishings or listing photos.
If you also plan to sell goods to guests, such as packaged snacks or merchandise, you may need a trader's license. The Clerk of the Circuit Court in your county issues it. The license year runs May 1 through April 30, and the Clerk cannot issue one if you owe personal property tax or have missing SDAT filings.
The 2026 Short-Term Rental Safety Act
The Jillian and Lindsay Wiener Short-Term Rental Safety Act was introduced as SB 624 and HB 1221 and became Chapter 10 of 2026. It was approved on April 14, 2026, and it took effect on October 1, 2026. Under the law, rental units must:
- Display evacuation diagrams for the unit.
- Display emergency phone numbers.
- Have fire extinguishers, smoke alarms and carbon monoxide alarms provided by the host.
The law also requires certain counties and Baltimore City to require inspections and to report to the State Fire Marshal. The inspection start dates and the duties placed on booking marketplaces to verify listings are reported differently by secondary sources, so this guide does not state them as settled. Read the chapter text itself, and confirm the inspection timeline and marketplace duties with your county and the State Fire Marshal.
Because the law is already in effect, check your unit now rather than waiting for an inspection notice. Confirm that the evacuation diagram and emergency numbers are posted, that every required alarm and extinguisher is installed and working, and that the items are in the same place for every guest.
How to Start an Airbnb in Maryland: Step-by-Step Checklist
- Confirm zoning and short-term rental rules with your county or city. Do this first, because a local ban or permit requirement can change the whole plan.
- Decide how you will hold the property. If you want liability separation from your personal assets, review the LLC section below.
- If you will operate under a name other than your own, file a Trade Name Registration with SDAT, not the county. The standard fee is $25, or $75 total with the $50 expedited fee.
- Obtain a free Sales and Use Tax License through the Comptroller's Combined Registration Application.
- Obtain your county or city short-term rental license, registration or permit. Fees and processing times vary, so confirm them with the local office.
- Confirm the county hotel rental tax rate and the collecting office, then build both taxes into your pricing.
- Install and post the 2026 safety items: fire extinguishers, smoke alarms, carbon monoxide alarms, an evacuation diagram and emergency phone numbers.
- Publish the listing only after the steps above are complete.
Forming an LLC for Your Rental Property
Many hosts hold rental property in an LLC to separate it from personal assets. Maryland charges a $100 filing fee for Articles of Organization, filed with SDAT. Maryland imposes no separate franchise tax on ordinary LLCs, but the entity must file a $300 Annual Report and Business Personal Property Return (Form 1) by April 15 each year. County business personal property tax can also apply if the entity reports taxable personal property.
Processing time depends on the option you choose. Non-expedited filings are reviewed during the second calendar month after submission. Expedited review costs an extra $50 and takes 7 to 14 business days. Online rush service costs an extra $325 and is reviewed within 3 hours when submitted by 2:30 p.m. on a business day.
Your LLC name must include Limited Liability Company, L.L.C., LLC, L.C. or L C, and it cannot be misleadingly similar to another entity on file with SDAT. The resident agent must have a Maryland street address (no P.O. box), and you must have the agent's consent before filing. Changing the resident agent or the agent's address costs $25 per entity.
How Rental Income Is Taxed in Maryland
An LLC is a pass-through entity for Maryland income tax, so members report rental income on their Maryland personal returns. The state personal income tax is a graduated rate of 2% to 6.5%, plus a county or Baltimore City local income tax of 2.25% to 3.30% for 2026. Your local rate depends on where you live, and the combined effect depends on your total income. Depreciation, operating expenses and the timing of your rental activity all change the result, so a CPA should model your numbers before you rely on any estimate.
Common Mistakes to Avoid
- Assuming the booking platform handles every tax. Confirm which taxes the platform remits and which remain yours.
- Listing before the local license or registration is issued. A listing that goes live early can create a compliance problem before the paperwork clears.
- Treating the safety items as optional. The state law is in effect now, so a unit without posted evacuation diagrams, emergency numbers or required alarms is out of compliance.
- Relying on a summary for inspection details. Confirm the inspection timeline and the marketplace duties against the chapter text and with your county.
Official Resources to Confirm With
- Comptroller of Maryland, state sales tax and hotel tax questions: https://www.marylandcomptroller.gov/
- Maryland Business Express, Sales and Use Tax License through the Combined Registration Application: https://businessexpress.maryland.gov/start/taxes-and-insurance
- SDAT Charter Division, LLC and business filings: https://dat.maryland.gov/businesses/Pages/default.aspx
- Maryland Business Express, online filing: https://egov.maryland.gov/businessexpress
- SDAT Trade Name Registration form: https://dat.maryland.gov/SDAT%20Forms/nameappl.pdf
- Maryland Small Business Development Center (SBDC) Network, business planning help: https://www.marylandsbdc.org/
When to Bring in a Professional
Have an attorney review your lease, house rules, insurance coverage and any LLC operating agreement. Have a CPA review your sales tax, hotel tax and income tax treatment, including depreciation. Your county or city license office is the authority on whether your property qualifies and what the local fee is, so call before you assume. A short consultation at the start costs far less than correcting a missed filing after bookings begin.
This guide is informational content, not legal or tax advice. Confirm every figure and deadline above with the agency that administers it before you act on it.