Maryland has a sales tax of 6 percent on most purchases

Maryland charges a 6 percent sales tax on retail goods and many services. This is the statewide rate that applies everywhere in the state. Some counties and cities add their own local tax on top of this — Baltimore City adds an extra 1 percent, for example, bringing the total to 7 percent in that jurisdiction. The rate you pay depends on where you make the purchase, not where you live.

The sales tax is collected by the retailer at the point of sale and sent to the Maryland Department of Revenue. You will see it added to your receipt after the subtotal. Food you buy at a grocery store to cook at home is not taxed, but prepared food — restaurant meals, deli items, and hot food from a store — is taxed at the full rate.

Key Takeaways

  • Maryland's statewide sales tax is 6 percent, but some counties and Baltimore City add local taxes that raise the total to 7 or 7.5 percent depending on location.
  • Groceries for home cooking are not taxed, but restaurant meals, prepared deli food, and hot food from stores are taxed at the full rate.
  • Clothing and shoes under $100 per item are exempt from sales tax in Maryland.
  • Services like haircuts, repairs, and professional fees are generally not subject to sales tax unless they involve a taxable product.

Local sales tax rates by county and city

While the state rate is 6 percent everywhere, Baltimore City and several counties impose an additional local tax. Baltimore City adds 1 percent for a total of 7 percent. Montgomery County and Prince George's County each add 0.5 percent, bringing their totals to 6.5 percent. Howard County adds 0.5 percent as well. Most other Maryland counties charge only the 6 percent state rate with no local addition.

The local tax applies to the same items as the state tax — you cannot avoid it by shopping in a different part of the county. If you buy something in Baltimore City, you pay 7 percent regardless of where you live. Online purchases shipped to a Maryland address are subject to Maryland sales tax at the rate for the delivery address.

What is not taxed in Maryland

Groceries — food you buy to prepare and eat at home — are not subject to sales tax. This includes bread, milk, vegetables, meat, frozen dinners, and canned goods. The rule is straightforward: if it is raw or prepared food meant to be eaten at home, it is not taxed.

Clothing and shoes under $100 per item are also exempt. A pair of shoes for $85 is not taxed. A coat for $120 is taxed on the full amount because it exceeds the threshold. The exemption applies to the individual item, not your total purchase, so you could buy multiple items under $100 each and none would be taxed.

Prescription medications are not taxed. Over-the-counter medicines like aspirin or cold medicine are taxed, but prescriptions filled by a pharmacist are exempt. Diapers and feminine hygiene products are not taxed in Maryland.

Services and what happens when they involve a product

Most services — haircuts, car repairs, plumbing, dental work — are not subject to sales tax in Maryland. You pay the service fee without tax added. However, if the service includes a tangible product that is normally taxed, the product portion may be taxed separately.

For example, a haircut itself is not taxed, but if the salon sells you shampoo or styling product, that product is taxed. A car repair is not taxed, but if the mechanic installs new parts, those parts are taxed. The service labor is always tax-free; the goods are taxed if they would be taxed as a retail sale.

Prepared food and restaurant meals

Any food prepared for when ready consumption is taxed at the full sales tax rate. This includes restaurant meals, food from a deli counter, hot food from a grocery store, pizza, sandwiches, and coffee from a café. The distinction is whether the food is ready to eat now, not whether you eat it in the restaurant or take it home.

A rotisserie chicken from a grocery store is taxed because it is hot and ready to eat. A raw chicken you cook yourself is not taxed. A sandwich made to order at a deli counter is taxed. Bread and deli meat you buy separately to make a sandwich at home are not taxed. This rule applies consistently across all food vendors.

How sales tax is calculated on your receipt

The retailer calculates sales tax on the subtotal of taxable items only. If you buy groceries and a magazine, the tax applies only to the magazine. The subtotal shown on your receipt reflects only the items that are subject to tax. The sales tax is then added to that subtotal to give you the final total.

Some receipts show the tax calculation broken down by item; others show a single tax amount at the end. Either way, the math is the same: the tax rate (6 percent statewide, or higher in your local jurisdiction) is multiplied by the taxable subtotal. You can verify the calculation by multiplying the subtotal by the tax rate yourself.

Frequently Asked Questions

Do I pay Maryland sales tax on online purchases?

Yes, if the item is shipped to a Maryland address and would be taxed as a retail sale in the state. The tax rate is based on your delivery address, not where the seller is located. This applies to purchases from out-of-state retailers as well.

Is there sales tax on used items or secondhand goods?

Used items sold by individuals are not taxed. Used items sold by a business or reseller are taxed at the standard rate. A car sold by a private owner has no sales tax; a used car sold by a dealer does.

What about tax on gasoline and fuel?

Gasoline and diesel fuel are not subject to Maryland sales tax. They are subject to a separate fuel tax that is included in the pump price, but this is not the same as sales tax.

Are streaming services and digital subscriptions taxed?

Digital products and subscriptions — streaming services, software, e-books, and digital downloads — are generally not subject to Maryland sales tax. Physical media like DVDs or CDs are taxed.

Can I get a sales tax refund if I overpaid?

If a retailer charged you sales tax on an exempt item by mistake, you can ask the store for a refund. Keep your receipt and contact the store's customer service. For larger errors, you can file a complaint with the Maryland Department of Revenue.