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 base rate that applies statewide. Some counties add their own local tax on top of it — 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 checkout (though not unprepared food you cook at home), restaurant meals, and most services. A few categories are taxed differently or not at all, which we'll cover below.

Key Takeaways

  • Maryland's base sales tax is 6%, but your actual rate is higher if you live in or buy from Baltimore City (7%) or certain counties that add local tax.
  • Groceries, prescription medications, and medical equipment are exempt from sales tax in Maryland.
  • Restaurant meals and prepared foods are taxed at the full rate, but raw ingredients you buy to cook at home are not.
  • The seller is responsible for collecting and sending the tax to the state, so you see it added at checkout rather than paying it separately.

What is and isn't taxed in Maryland

Food you prepare yourself — raw meat, vegetables, bread, milk, eggs — is not taxed. But the moment that same food is prepared for you, it becomes taxable. A sandwich from a deli counter, a restaurant meal, or a bakery cake all get the full 6% plus any local tax.

Prescription medications and over-the-counter drugs are exempt. Medical equipment like wheelchairs, crutches, and diabetic supplies are also tax-free. Clothing and footwear are taxed at the full rate — there is no clothing exemption in Maryland, unlike some other states.

Services vary. Haircuts, repairs, and labor are generally taxable. However, some professional services like legal information and accounting are not. If you are unsure whether a specific service is taxed, the seller should be able to tell you before you pay.

Local taxes that add to the state rate

Baltimore City charges an additional 1% on top of the state 6%, bringing the total to 7%. Several other jurisdictions also add local tax: Anne Arundel County, Howard County, and Montgomery County each add 0.5%, and Baltimore County adds 0.75%. If you live in or buy from one of these areas, your total rate will be higher than 6%.

Most other Maryland counties charge only the state 6%. When you shop online or by mail, the tax rate depends on where the seller is located and where the item is being shipped. If you order from a Maryland seller and have it delivered to your address, Maryland tax applies. If you order from outside Maryland, you typically do not pay Maryland sales tax at checkout, though this rule has exceptions for large online retailers.

Who collects the tax and when you see it

The business selling you the item is responsible for collecting sales tax and sending it to the Maryland Department of Revenue. You see the tax added to your receipt at the register or at checkout online. The seller calculates it based on the item's price and your location.

If a receipt shows no tax, either the item is exempt (like groceries or prescription drugs) or the seller made an error. You do not file sales tax yourself as a consumer — the business handles all of that. Your only interaction with it is seeing the amount added to your bill.

How sales tax differs from income tax

Sales tax and income tax are separate. Income tax is what comes out of your paycheck and is based on how much you earn. Sales tax is added when you spend money on taxable items. Maryland charges both — a state income tax that ranges from 2% to 5.75% depending on your income, plus the 6% sales tax on purchases.

Some states have high sales tax and low income tax, or vice versa. Maryland is in the middle on both. The sales tax you pay does not reduce your income tax bill or count toward it — they are two different taxes collected by the state for different purposes.

Special situations and exemptions

Businesses that resell items can get a resale certificate from the Maryland Department of Revenue, which lets them buy wholesale without paying sales tax. They then collect tax from their customers instead. If you are starting a business, you will need to register for a sales tax permit with the state.

Nonprofit organizations may be exempt from sales tax on certain purchases, but they have to explore for that status. Individuals do not get exemptions based on income or need — the exemptions are built into the tax code for specific categories like food and medicine.

Frequently Asked Questions

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

Usually not at checkout, but it depends on the seller. Large online retailers like Amazon and Walmart collect Maryland tax on orders shipped to Maryland addresses. Smaller sellers may not. You are technically supposed to report and pay tax on untaxed purchases yourself, but this is rarely enforced for individual consumers.

Why is my receipt total different from what I calculated?

The tax is calculated on the item price, not on any discounts or coupons applied first. If you use a coupon, the tax is usually applied to the discounted price. Some items may also be exempt, which would lower the tax. Check your receipt to see which items were taxed and which were not.

Are there any clothes or shoes that are not taxed?

No. Maryland taxes all clothing and footwear at the full 6% plus local tax. There is no exemption for children's clothes, work uniforms, or any other category. Some states exempt clothing under a certain price, but Maryland does not.

Do I have to pay sales tax on used items?

If you buy a used item from a business — a used car from a dealer, used furniture from a store — sales tax applies. If you buy from an individual (a private car sale, a garage sale), no sales tax is collected. The tax applies to the transaction, not the age of the item.

What if a business charges me tax on something that should be exempt?

Ask the cashier or manager to check. If they confirm it was an error, they should adjust your receipt. If you have already paid and left, contact the business with your receipt. Most errors are honest mistakes in how the register was set up, and businesses will refund the difference.