Sales Tax in Maryland: A Complete Guide for Ecommerce Sellers

Maryland has a flat 6% statewide rate with no local additions, one of the simplest rate structures in the US. However, Maryland has one of the most aggressive digital product and SaaS tax positions among states, making it an important state for technology companies and digital content sellers. Maryland also enacted the country’s first digital advertising services tax. For physical goods sellers, Maryland’s flat rate and simple structure make it straightforward to implement.

Quick reference

Economic nexus

Maryland’s OR threshold: $100,000 in gross sales OR 200 or more separate transactions into Maryland in the current or prior calendar year. Either condition alone triggers registration.

Maryland enacted its economic nexus rules effective October 1, 2018.

Physical nexus

Physical presence in Maryland creates nexus without any threshold:

• Warehouse, office, or storage facility in Maryland
• Amazon FBA inventory in Maryland fulfillment centers
• Employees, agents, or independent contractors in Maryland
• Sales representatives in Maryland

Registration

Register through the Maryland Comptroller’s online registration system (www.marylandtaxes.gov). Registration is free. Maryland issues a Sales and Use Tax License.

Tax rates

State rate: 6% flat

No local additions: Maryland does not allow counties or municipalities to levy additional sales taxes. The 6% state rate is the only rate, it applies uniformly to all Maryland addresses.

This eliminates the jurisdiction-level rate complexity found in states like Illinois, Washington, or Colorado. Any Maryland ship-to address: 6%.

What’s taxable

Generally taxable: Electronics, clothing, furniture, sporting goods, toys, most tangible personal property. Digital products (see below).

Generally exempt:

• Prescription medications
• Most food for human consumption (groceries)
• Agricultural equipment and supplies
• Residential energy

Notable Maryland rules:

• Digital products: Maryland taxes a broad range of digital products: downloaded software, digital audio works (music), digital audiovisual works (video), digital books (ebooks), and digital codes that access any of these. Maryland’s digital product base is among the broadest of any state
• SaaS: Maryland taxes SaaS, software accessed remotely via the cloud is subject to Maryland sales tax. This is an explicit Maryland position
• Clothing: Taxable in Maryland, no clothing exemption
• Food: Maryland broadly exempts food for home consumption. Prepared food, vending machine food, candy, and soft drinks are taxable

Shipping taxability

Maryland taxes delivery charges when the shipped goods are taxable. When all goods in a shipment are exempt, the delivery charge is also exempt.

Marketplace facilitator rules

Maryland enacted marketplace facilitator legislation effective October 1, 2019. Qualifying marketplace facilitators collect and remit Maryland sales tax on marketplace-facilitated sales.

Remote sellers with no Maryland physical nexus whose only Maryland sales are through marketplace facilitators may not need to separately register. Sellers with Maryland physical nexus must register regardless.

State-specific notes

Broad digital product taxation: Maryland’s taxation of digital products is one of the most expansive in the country. Sellers of any digital content, ebooks, music downloads, video downloads, software downloads, or streaming services, should confirm Maryland applies to their product type. SaaS is explicitly taxable. Unlike many states where SaaS taxability is unclear or evolving, Maryland has taken a clear position.

Flat 6% rate: Maryland’s single-rate structure eliminates rate lookup complexity. No county tables, no city lookups — 6% applies everywhere in Maryland. This is a meaningful operational simplification.

Digital advertising services tax: Maryland enacted the first state digital advertising services tax in 2021, applicable to annual gross revenues from digital advertising services in Maryland. This applies to advertising platforms (Google, Facebook, etc.) rather than typical ecommerce sellers, but it signals Maryland’s willingness to apply taxation to digital economy activities.

Not an SST member: Maryland is not an SST member, so sellers cannot register Maryland through a CSP’s SST application. Register directly through the Comptroller’s portal.