Sales Tax Rules
Maryland imposes a state sales tax rate of 6%, with a maximum combined rate (state plus local) of 6% when local taxes are added. Economic nexus is triggered at $100,000 in sales or 200 transactions — meaning out-of-state businesses that exceed this threshold must collect and remit Maryland sales tax. SaaS and digital software products are taxable in Maryland. Groceries are exempt from state sales tax.
SaaS Tax Details
Taxed at 6% for B2C and a reduced 3% for B2B transactions.
Grocery Details
Groceries are exempt; snack foods are taxable.
What is the sales tax rate in Maryland?
Maryland's state sales tax rate is 6%. When local taxes are added, the maximum combined rate can reach 6%. The actual rate you pay depends on the county and city where the purchase is made.
What is the economic nexus threshold in Maryland?
Maryland requires out-of-state businesses to collect sales tax once they exceed $100,000 in sales or 200 transactions in a calendar year. Once nexus is established, the business must register, collect, and remit Maryland sales tax.
Is SaaS taxable in Maryland?
Yes. Maryland considers SaaS (Software as a Service) taxable. Businesses selling SaaS products to Maryland customers must collect sales tax. Taxed at 6% for B2C and a reduced 3% for B2B transactions.
Are groceries taxed in Maryland?
Groceries are generally exempt from sales tax in Maryland. Groceries are exempt; snack foods are taxable.
Are digital goods taxable in Maryland?
Yes. Maryland taxes digital goods including downloaded software, music, movies, and e-books. Businesses selling digital products to Maryland customers should collect sales tax.
Are clothing items exempt from sales tax in Maryland?
Clothing is subject to sales tax in Maryland at the standard state rate.
How often do I need to file sales tax in Maryland?
Maryland requires sales tax filing on a Monthly, Quarterly, or Annual. Online filing is available through the official Department of Revenue portal.
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Official Source
Maryland Department of Revenue
Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.