Maryland's statewide sales tax rate is 6 percent

Maryland charges a 6 percent sales tax on most retail purchases. This is the base rate that applies across the entire state. However, some counties add their own local tax on top of the state rate, which means your total sales tax can be higher depending on where you shop.

The 6 percent state rate has been in place since 1992. It applies to tangible goods — things you can touch and take home — rather than services. Food bought at a grocery store is exempt, but prepared food and restaurant meals are taxed.

Key Takeaways

  • Maryland's base sales tax is 6 percent statewide, but some counties add a local tax that raises the total to 6.5 or 7.5 percent depending on location.
  • Groceries and unprepared food are not taxed, but restaurant meals, prepared foods, and fast food are subject to the full sales tax rate.
  • Clothing and shoes are exempt from Maryland sales tax, which is unusual compared to many other states.
  • The tax applies to tangible goods you purchase, not to most services like haircuts, repairs, or professional fees.
  • Local tax rates vary by county, so the total you pay depends on which county you make your purchase in, not where you live.

How local county taxes change your total rate

Six Maryland counties add a local sales tax on top of the state's 6 percent. These local taxes range from 0.5 to 1.5 percent, depending on the county. The total sales tax you pay is the state rate plus whatever local rate applies where you make the purchase.

Baltimore City, Baltimore County, Howard County, and Montgomery County each add 0.5 percent, bringing the total to 6.5 percent. Prince George's County adds 1 percent, for a total of 7 percent. Anne Arundel County adds 1.5 percent, for a total of 7.5 percent. The remaining counties have no local sales tax, so you pay only the 6 percent state rate.

The rate that matters is where the transaction happens, not where you live. If you live in a county with no local tax but drive to Anne Arundel County to shop, you pay 7.5 percent on that purchase. If you live in Anne Arundel but order something online from a retailer based in a no-local-tax county, the tax rate depends on the retailer's location and their tax collection practices.

What is and is not taxed in Maryland

Maryland exempts groceries and unprepared food from sales tax. This means items like bread, milk, eggs, vegetables, and meat bought at a supermarket are not taxed. However, prepared foods — anything ready to eat — are taxed at the full rate. This includes restaurant meals, deli items, bakery items sold as prepared food, and fast food.

Clothing and shoes are exempt from Maryland sales tax, which is a significant difference from many other states. This applies to regular apparel and footwear but not to accessories like belts, hats, or gloves that are not considered clothing.

Most services are not taxed in Maryland. Haircuts, car repairs, plumbing, electrical work, and professional services like accounting or legal information do not have sales tax. However, some specific services are taxed, including laundry and dry cleaning, parking, and certain telecommunications services.

Sales tax on online and mail orders

Maryland requires online retailers to collect and send sales tax to the state if they have a physical presence in Maryland or meet certain sales thresholds. Many large national retailers now collect Maryland sales tax on all orders shipped to Maryland addresses, regardless of where the retailer is based.

If a retailer does not collect Maryland sales tax on your purchase, you are technically responsible for reporting and paying the tax yourself on your state tax return. This is called use tax, and it applies to items you bought out of state or online without tax being collected. In practice, most individual shoppers do not report use tax, but the obligation exists.

The local county tax rate that applies to your online purchase depends on the shipping address, not the retailer's location. If you order something to be delivered to Anne Arundel County, the 7.5 percent rate applies if the retailer collects tax.

Tax-exempt purchases and who qualifies

Certain organizations and individuals can make purchases without paying sales tax. Nonprofits, government agencies, and schools can buy items tax-free if they register with the Maryland Department of Revenue and provide a tax-exempt certificate at the time of purchase. Religious organizations also may have access to for exemption on purchases related to their religious functions.

Resellers — businesses that buy items to resell to customers — do not pay sales tax on their wholesale purchases if they provide a resale certificate to the supplier. The tax is collected later when the item is sold to the final customer.

Individual shoppers do not have a blanket exemption. However, certain items like prescription medications and medical equipment used by individuals with disabilities may be exempt or taxed at a lower rate depending on the specific item and how it is classified.

Frequently Asked Questions

Do I pay sales tax on groceries in Maryland?

No, unprepared groceries like produce, meat, dairy, and bread are not taxed. However, prepared foods — items ready to eat like deli sandwiches, rotisserie chicken, or bakery items sold as prepared food — are taxed at the full rate. The distinction is whether the food requires further preparation at home.

What is the sales tax rate in Baltimore?

Baltimore City has a total sales tax rate of 6.5 percent: the 6 percent state rate plus 0.5 percent local tax. This rate applies to all taxable purchases made within Baltimore City limits.

Are clothes and shoes taxed in Maryland?

No, clothing and shoes are exempt from Maryland sales tax. This includes regular apparel and footwear but not accessories like belts, hats, or gloves that are not considered clothing items.

Do I owe tax on items I buy online from out-of-state retailers?

If the retailer collects Maryland sales tax, it is included in your purchase. If they do not collect it, you are technically responsible for reporting and paying use tax on your state return, though most individual shoppers do not. Large retailers typically collect tax on Maryland deliveries now.

What is the difference between state and local sales tax in Maryland?

The state charges 6 percent on all taxable purchases. Six counties add their own local tax on top of that: Baltimore City, Baltimore County, Howard County, and Montgomery County add 0.5 percent each; Prince George's County adds 1 percent; Anne Arundel County adds 1.5 percent. The remaining counties have no local tax.