Maryland's Sales Tax Rate and What It Covers

Maryland charges a 6% sales tax on most goods and services you buy in the state. This is the statewide rate that applies everywhere in Maryland. Some counties add their own local tax on top of this — Baltimore City adds 1%, and several other counties add between 0.5% and 1% — so your total rate depends on where you make the purchase.

The 6% applies to clothing, electronics, furniture, groceries at the register, and most other tangible items. It also applies to many services: haircuts, dry cleaning, repairs, and installation labor all get taxed. But not everything does. Prescription medications, unprepared food you buy to take home and cook yourself, and certain medical equipment are exempt.

When you see a price tag in a Maryland store, that price does not include sales tax. The tax is added at checkout. If you buy something for $100, you will pay $106 (or more if your county has added tax). Online purchases follow the same rule if the seller has a physical location in Maryland or meets certain sales thresholds.

Key Takeaways

  • Maryland's statewide sales tax is 6%, but your actual rate is higher if you live in or buy from Baltimore City (7%) or certain other counties.
  • Sales tax applies to clothing, electronics, most food, services like haircuts and repairs, and restaurant meals.
  • Prescription medications, unprepared groceries you cook at home, and some medical devices are not taxed.
  • The tax is added at the register, not included in the price tag you see in stores.
  • Online sellers must collect Maryland sales tax if they have a physical presence in the state or meet federal sales thresholds.

Which Counties Charge Extra Local Sales Tax

Baltimore City charges an additional 1% on top of the 6% statewide rate, bringing the total to 7%. This is the highest local add-on in Maryland. Several other jurisdictions charge less: Anne Arundel County, Garrett County, and Somerset County each add 0.5%, while Baltimore County, Carroll County, Frederick County, Harford County, Howard County, Montgomery County, Prince George's County, and Wicomico County each add 1%.

The remaining counties — Allegany, Calvert, Caroline, Cecil, Charles, Dorchester, Kent, Queen Anne's, Somerset, Talbot, and Washington — charge only the 6% statewide rate with no local addition. If you shop near a county border, the rate changes the moment you cross it. A purchase in Montgomery County (7% total) costs more in tax than the same purchase in Washington County (6% total).

When you buy something online and have it shipped to a Maryland address, the tax rate that applies is the one for the county where the item is delivered, not where the seller is located. If you live in Baltimore City and order from an out-of-state retailer, you pay 7% tax on delivery to your address.

What Is and Is Not Subject to Sales Tax

Food you prepare at home is not taxed. Groceries — raw vegetables, meat, bread, milk, eggs, pasta — are all tax-free when you buy them to cook yourself. But the moment that food is prepared or ready to eat, tax applies. A sandwich from a deli counter, a rotisserie chicken, a salad bar item, or anything from a restaurant gets taxed. Even a hot pizza from a grocery store bakery is taxed because it is prepared food.

Clothing and footwear are taxed in Maryland, with no exemption for children's clothing or any other category. A pair of shoes costs the same tax rate whether you buy them for yourself or your child. Accessories like belts, hats, and gloves are also taxed.

Services that are taxed include labor for repairs (car repairs, appliance repairs, home repairs), personal services (haircuts, manicures, massages), and installation. If you buy a water heater and pay someone to install it, both the heater and the labor are taxed. Dry cleaning and laundry services are taxed. Utilities — electricity, gas, water — are not taxed, but the service charge on your bill may be.

Medical items have specific rules. Prescription medications are exempt, but over-the-counter drugs and vitamins are taxed. Durable medical equipment like wheelchairs and oxygen equipment is exempt if prescribed by a doctor, but you will need documentation. Eyeglasses and contact lenses are taxed.

How Sales Tax Works for Online and Out-of-State Purchases

If you buy something online from a retailer that has a warehouse, office, or other physical presence in Maryland, that retailer must collect Maryland sales tax on your order. The same applies if the retailer meets the federal threshold for sales nationwide — currently $600,000 in annual sales — even if they have no Maryland location. Most large online retailers (Amazon, Walmart, Target, Best Buy) collect Maryland tax on orders shipped to Maryland addresses.

Smaller retailers with no Maryland presence and sales below the federal threshold do not have to collect Maryland tax at checkout. However, Maryland law requires you to pay "use tax" on those purchases yourself when you file your state income tax return. In practice, very few individuals report use tax, but it is technically your responsibility.

If you buy something out of state and bring it back to Maryland, you do not pay Maryland sales tax on it. The tax was already paid in the state where you bought it. You do not owe use tax on items purchased and taxed in another state.

Sales Tax on Specific Categories: Cars, Fuel, and Alcohol

When you buy a car in Maryland, sales tax applies to the purchase price. The rate is the same 6% statewide plus any local addition — so 7% in Baltimore City, 7% in most other counties. If you trade in a vehicle, the tax applies only to the difference between the new car's price and your trade-in value, not the full purchase price. A $20,000 car with a $5,000 trade-in is taxed on $15,000.

Gasoline and diesel fuel are not subject to sales tax in Maryland. You pay a fuel tax per gallon instead, which is separate from sales tax. That fuel tax goes to the state road fund and is already included in the pump price you see.

Alcoholic beverages — beer, wine, and liquor — are subject to sales tax when you buy them at a store. The tax applies on top of any state alcohol tax or license fees. If you buy alcohol at a bar or restaurant, sales tax applies to your bill along with any tip.

Sales Tax Exemptions for Businesses and Resellers

If you are a business that buys goods to resell them, you do not pay sales tax on those purchases. Instead, you provide the seller with a resale certificate, and the tax is collected from the end customer when they buy the item. A clothing store does not pay sales tax when it buys inventory from a wholesaler; the customer pays tax when they buy the shirt in the store.

Certain organizations — nonprofits, schools, and government agencies — may be exempt from sales tax on purchases. The rules vary by organization type and purchase category. If your organization thinks it qualifies, you will need to register with the Maryland Department of Revenue and obtain an exemption certificate.

Agricultural businesses have exemptions for certain equipment and supplies used directly in farming. A farmer buying seeds or fertilizer for crops may not pay sales tax, but the rules are specific. Check with the Maryland Department of Revenue if you operate a farm.

How to Understand Your Receipt and Calculate Tax

When you look at a Maryland receipt, the subtotal is the price before tax. The sales tax line shows the amount calculated at your local rate. The total is subtotal plus tax. If you buy something for $50 in a county with 7% tax, the receipt shows $50 subtotal, $3.50 tax, and $53.50 total.

If you are budgeting or comparing prices, remember to add tax to any advertised price. A store advertisement that says "$99" will cost you $105.94 in Baltimore City (7% tax) or $104.94 in a 6%-only county. This matters most for large purchases like appliances or furniture.

Some stores advertise prices "tax included" to make comparison easier, but this is not required. Most stores show the pre-tax price and add tax at checkout. Knowing your local rate helps you estimate the final cost before you reach the register.

Frequently Asked Questions

Do I pay Maryland sales tax if I buy something online from out of state?

Only if the retailer collects it. Large retailers like Amazon and Walmart collect Maryland tax on orders shipped to Maryland. Smaller retailers with no Maryland presence and under $600,000 in annual sales do not have to collect it, though Maryland law says you owe use tax on those purchases yourself. In practice, most people do not report use tax.

Is clothing taxed in Maryland?

Yes. All clothing and footwear are subject to the 6% statewide sales tax plus any local addition. There is no exemption for children's clothing or any other type of apparel.

What is the difference between sales tax and use tax?

Sales tax is collected by the seller at the point of purchase. Use tax is a tax you owe on items you buy from out-of-state sellers who do not collect Maryland tax. You are supposed to report and pay use tax on your state income tax return, but enforcement is minimal.

Do I pay sales tax on groceries?

Only on prepared food. Raw groceries — vegetables, meat, bread, milk, eggs — are tax-free. But deli sandwiches, hot food from a bakery, restaurant meals, and anything ready to eat is taxed.

What happens if I buy something in another state and bring it to Maryland?

You do not owe Maryland sales tax or use tax. The tax was already paid in the state where you purchased it. You only owe use tax on items bought from sellers who did not collect any state tax.