Home Individual Taxes Sales and Use Tax Sales and Use Tax Information Sales and Use Tax Information The sale of tangible personal property is generally taxable except as otherwise provided by law; the sale of a service is generally not taxable except for certain taxable services provided by law. For example, food sold in grocery stores and prescription medicines are generally not taxable. Furthermore, there are no additional sales taxes imposed locally in Maryland. Use Tax Information Use Tax Information Every time you purchase taxable tangible goods or alcoholic beverages, whether in person, over the phone, or on the Internet, the purchase is subject to Maryland's 6 percent sales and use tax on goods and 9 percent alcoholic beverages tax on alcohol if you use the merchandise in Maryland. When you purchase goods from businesses located outside of Maryland, they are not required to collect Maryland's sales tax unless they have a physical location, or deliver services, in Maryland. Also, you are not required to pay the sales tax in the state where the business is located. However, you are required to pay the 6 percent use tax or the 9 percent alcoholic beverage tax directly to the Comptroller of Maryland by filing the consumer use tax return. Temporary Sales and Use Licenses Temporary Sales and Use Licenses Individuals who do not have a permanent sales tax license are required to obtain a temporary license and collect a 6 percent or 9 percent sales and use tax for sales at various events such as craft shows and fairs. To obtain a temporary license call 410-767-1543 or 410-767-5462. The temporary license lasts for 30 days. Additional Sales and Use Tax Information Additional Sales and Use Tax Information For additional information about the specifics of certain types of sales rates, fees and exemptions, visit the following two sections in the sales and use tax section for businesses: Special Situations Tax Exemptions Tax Rates Tax Rates Effective January 3, 2008, the Maryland sales and use tax rate is 6 percent, as follows: 1 cent on each sale where the taxable price is 20 cents. 2 cents if the taxable price is at least 21 cents but less than 34 cents. 3 cents if the taxable price is at least 34 cents but less than 51 cents. 4 cents if the taxable price is at least 51 cents but less that 67 cents. 5 cents if the taxable price is at least 67 cents but less than 84 cents. 6 cents if the taxable price is at least 84 cents. On each sale where the taxable price exceeds $1.00, the tax is 6 cents on each exact dollar, plus: 1 cent if the excess over an exact dollar is at least 1 cent but less than 17 cents. 2 cents if the excess over an exact dollar is at least 17 cents but less than 34 cents. 3 cents if the excess over an exact dollar is at least 34 cents but less than 51 cents. 4 cents if the excess over an exact dollar is at least 51 cents but less than 67 cents. 5 cents if the excess over an exact dollar is at least 67 cents but less than 84 cents. 6 cents if the excess over an exact dollar is at least 84 cents. Download our sales and use tax rate chart. Special rates and situations An 11% percent tax is imposed on short-term passenger car and recreational vehicle rentals. Certain short-term truck rentals are subject to an 8 percent tax. The 6 percent tax rate is applied to a portion of the sale of new mobile homes and modular buildings, as well as a portion of the gross receipts from vending machine sales. The 9 percent tax rate is applied to sales of alcoholic beverages. Reference the Alcoholic Beverage Tax Rate Chart-9% for details. See the Special Situations section for more information. Tax Regulations Sales and Use Tax Regulations The following links offer summaries of Maryland tax legislation that was passed during the 2011 session of the General Assembly and signed into law by Governor Martin O'Malley. All references are to the Tax-General Article (TG), Annotated Code of Maryland, unless otherwise noted. For information about other tax legislation, visit the Maryland General Assembly's Web site. Sales and Use Tax Notices Sales and Use Tax Notices The Sales and Use tax notices provide information on registration, discounts, licenses and general information concerning new legislation and enforcement it's effect on the sales & use tax. Number Title 1 Notice to holders of special out-of-state Maryland sales and use tax licenses 2 Timely Discount 3 You may need to register with Maryland 4 Filing schedule 5 Transient Vendor Notice 6 Roadside vendors must have transient vendor license 7 Change in consolidated filing requirements 8 Beware of phony state tax auditors! 9 Bulk sales and use tax returns 10 Refunds on purchases made for resale 11 Don't mail a sales and use tax or employer withholding report if no tax is due 12 Repeal of snack food tax 13 Notice to applicants for transient vendors license 14 Notice to Antique Dealers and Sellers of Used Collectibles 15 Report of Taxpayers Remitting Admissions and Amusement Tax Sales and Use Tax Bulletins Sales and Use Tax Bulletins Number Title 21-1 Application of Sales and Use Tax to Digital Products and Digital Codes 14-1 2014 Changes in the Sales and Use Tax Law 13-1 2013 Changes in the Sales and Use Tax Law 10-2 2010 Shop Maryland Week - Sales Tax Holiday 10-1 2010 Changes in the Sales and Use Tax Law 09-1 2009 Changes in the Sales and Use Tax and Admissions and Amusement Tax Law 08-1 2008 Changes in the Sales and Use Tax Law 07-3 Sales and Use Tax - Tax-Free Periods 07-2 2007 Special Session Changes in Sales and Use Tax Law 07-1 2007 Changes in the Sales and Use Tax Law 06-2 Sales Tax Holiday: August 23-27, 2006 06-1 2006 Changes in the Sales and Use Tax Law 03-1 2003 Changes in the Sales and Use Tax Law 02-1 2002 Changes in the Sales and Use Tax Law 01-3 2001 Changes in the Sales and Use Tax Law 01-1 Taxability of Medical Equipment 00-1 2000 Changes in the Sales and Use Tax Law 99-1 1999 Changes in the Sales and Use Tax Law 98-1 1998 Changes in the Sales and Use Tax Law 97-2 1997 Changes in the Sales and Use Tax Law 96-1 1996 Changes in the Sales and Use Tax Law 95-1 1995 Changes in the Sales and Use Tax Law Sales and Use Tax Alerts Sales and Use Tax Alerts Sales and Use Tax Alert – Marketplace Facilitators (09/25/2019) Sales and Use Tax Alert – Peer-to Peer Car Sharing (08/02/2018) Sales and Use Tax Alert – Acts of 2016, Chapter 3 Sales and Use Tax - Taxable Price - Accommodations (05/02/2016) Sales and Use Tax Alert – The United States Supreme Court Decision South Dakota V. Wayfair and its Implications for Sale Tax Nexus (09//2018) Frequently Asked Questions Shop Maryland Programs Twice a year Maryland holds special shopping events when the state sales tax on certain purchases is waived. These events help consumers stretch their dollar just a bit more, and help business owners generate more foot traffic. Shop Maryland Energy and Shop Maryland Tax-free Week occur in February and August every year thanks to legislation passed in the 2007 special session of the Maryland General Assembly. Shop Maryland Energy takes place in the month of February for qualified Energy Star products or a solar water heater. The tax-free period for these products begins on the Saturday immediately preceding the third Monday in February. Shop Maryland Tax-free Week occurs every year beginning the second Sunday of August through the following Saturday. Each qualifying article of clothing or footwear selling for $100 or less is exempt from sales tax, regardless of how many items are purchased at the same time. For example, two $60 sweaters purchased at the same time are both exempt even though the total of the purchase is greater than $100.Additionally, the first $40 of a backpack or bookbag purchase is also tax-free. Accessory items, except for backpacks, are not included. Unlike previous tax-free periods, businesses selling other items not eligible for inclusion in the tax-free week can participate in Shop Maryland. Under regulations dubbed Sellers Privilege, other merchandise besides apparel and backpacks can be sold tax free but with the retailer paying the sales tax. These tax-free events will continue until the legislature decides to revisit the issue. Seller's Privilege Unlike in previous tax-free periods, businesses selling other items not eligible for inclusion in the tax-free week can participate in Shop Maryland. Legislation passed in 2007, dubbed Sellers Privilege, allows other merchandise besides apparel to be sold tax free but with the retailer absorbing the sales tax. A vendor may assume or absorb all or any part of the sales and use tax on a retail sale and pay that tax on behalf of the buyer. The vendor must, however, continue to separately state the tax from the sales price at the time of the sale to the purchaser. If the vendor absorbs all or any part of the tax on the sale, the vendor shall pay the tax with the return that covers the period in which the vendor makes the sale. Shop Maryland Tax Free Shop Maryland Energy ENERGY STAR Sales and Use Tax Facts The Sales and Use Tax Facts are developed by the Comptroller's Office each year to inform taxpayers of any new legislation affecting sales and use tax and/or new procedures on how it is collected, remitted etc. Sales and Use Tax Facts 2023-2024 Sales and Use Tax Facts 2022-2023 Sales and Use Tax Facts 2021-2022 Sales and Use Tax Tips Tip 14 - Flea market sales are subject to tax Tip 26 - What you need to know about Maryland's use tax Alcohol and Motor Fuel Tax Tips Tip 37 - Protecting alcohol, tobacco and motor fuel consumers Tip 25 - Direct shipments of alcoholic beverages to consumers are illegal