How to compute md-sales-tax for Maryland, tax year 2025: rates, thresholds, and step-by-step rules with primary-source citations.
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General reference only
This Guide is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for your personal facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
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State sales tax rate
6.00% (flat)Maryland Code, Tax-General Article, § 11-104
Local sales tax rate
None (0%)Maryland Code, Tax-General Article, § 11-104
Maximum combined sales tax rate
6.00%Maryland Code, Tax-General Article, § 11-104
Economic nexus sales threshold
$100,000Maryland Code, Tax-General Article, § 11-701
Economic nexus transaction threshold
200 transactionsMaryland Code, Tax-General Article, § 11-701
Economic nexus trigger logic
$100,000 OR 200 transactions (either threshold triggers nexus)Maryland Code, Tax-General Article, § 11-701
Sourcing rule
Destination-basedMaryland Code, Tax-General Article, § 11-701
Streamlined Sales Tax (SST) member
NoStreamlined Sales Tax Governing Board membership roster
General tangible personal property (TPP) taxability
TAXABLE at 6%Maryland Code, Tax-General Article, § 11-102
Clothing taxability
TAXABLE — no exemptionMaryland Code, Tax-General Article, § 11-102
Grocery food taxability
EXEMPTMaryland Code, Tax-General Article, § 11-206
Prepared food taxability
TAXABLEMaryland Code, Tax-General Article, § 11-102
SaaS (Software as a Service) taxability
TAXABLE — Maryland taxes SaaS and digital productsMaryland Code, Tax-General Article, § 11-102; Comptroller of Maryland Business Tax Tip #29
Canned (pre-written) software taxability
TAXABLEMaryland Code, Tax-General Article, § 11-102; Comptroller of Maryland Business Tax Tip #29
Digital goods taxability
TAXABLEMaryland Code, Tax-General Article, § 11-102; Comptroller of Maryland Business Tax Tip #29
Professional services taxability
NOT TAXABLEMaryland Code, Tax-General Article, § 11-102
Manufacturing equipment taxability
EXEMPTMaryland Code, Tax-General Article, § 11-216
Prescription drugs taxability
EXEMPTMaryland Code, Tax-General Article, § 11-211
Over-the-counter (OTC) drugs taxability
EXEMPTMaryland Code, Tax-General Article, § 11-211
Resale purchases taxability
EXEMPTMaryland Code, Tax-General Article, § 11-101 (resale certificate provisions)
Digital advertising gross revenues — separate tax applicability
TAXABLE under Maryland Digital Advertising Gross Revenues Tax (separate from sales tax)Maryland Code, Tax-General Article, § 7.5-101 et seq. (Digital Advertising Gross Revenues Tax)
Quick reference
| Field | Value |
|---|---|
| Jurisdiction | Maryland |
| State rate | 6.00% (flat -- no local sales tax) |
| Local taxes | None |
| Maximum combined rate | 6.00% |
| Sourcing | Destination-based |
| Economic nexus | $100,000 OR 200 transactions |
| Tax authority | Comptroller of Maryland |
| Portal | https://www.marylandtaxes.gov |
| SST member | No |
| Skill version | 2.0 |
Transaction pattern library
| Pattern | Taxable? | Notes |
|---|---|---|
| General TPP | TAXABLE 6% | |
| Clothing | TAXABLE | No exemption |
| Grocery food | EXEMPT | |
| Prepared food | TAXABLE | |
| SaaS | TAXABLE | Maryland taxes SaaS and digital products |
| Canned software | TAXABLE | |
| Digital goods | TAXABLE | |
| Professional services | NOT TAXABLE | |
| Manufacturing equipment | EXEMPT | |
| Prescription drugs | EXEMPT | |
| OTC drugs | EXEMPT | |
| Resale | EXEMPT | |
| Digital advertising (separate tax) | TAXABLE | Maryland Digital Advertising Gross Revenues Tax -- separate from sales tax |
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This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
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Other Maryland computations in the OpenAccountants Tax Library.
Rendered from the facts database. General reference only — confirm with a qualified professional before acting.
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