Sales and 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

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 410-767-1531.  The temporary license lasts for 30 days. 

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

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.

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

• Sales and Use Tax FAQs
• Out of State Purchases FAQs
• Flea Markets FAQs
• Food and Beverages FAQs
• Alcoholic Beverages FAQs
• Purchases for Resale FAQs

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

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 2022-2023
• Sales and Use Tax Facts 2021-2022
• Sales and Use Tax Facts 2020-2021
• Sales and Use Tax Facts 2018-2019
• Sales and Use Tax Facts 2017-2018
• Sales and Use Tax Facts 2016-2017
• Sales and Use Tax Facts 2015-2016
• Sales and Use Tax Facts 2014-2015
• Sales and Use Tax Facts 2013-2014
• Sales and Use Tax Facts 2012-2013
• Sales and Use Tax Facts 2011-2012
• Sales and Use Tax Facts 2010-2011
• Sales and Use Tax Facts 2009-2010
• Sales and Use Tax Facts 2008-2009
• Sales and Use Tax Facts 2007-2008

Tip 14 - Flea market sales are subject to tax

Tip 26 - What you need to know about Maryland's use tax

Tip 37 - Protecting alcohol, tobacco and motor fuel consumers

Tip 25 - Direct shipments of alcoholic beverages to consumers are illegal