Maryland's statewide sales tax is 6 percent
Maryland charges a 6 percent sales tax on most retail purchases. This is the base rate that applies across the entire state. However, your actual tax rate depends on where you shop, because some Maryland counties and cities add their own local sales tax on top of the state rate.
The combined rate you pay ranges from 6 percent to 8.75 percent depending on your location. For example, if you buy something in Baltimore City, you pay 6 percent state tax plus 2.75 percent local tax, for a total of 8.75 percent. If you shop in a county with no local addition, you pay only the 6 percent state rate.
Key Takeaways
- Maryland's state sales tax is 6 percent, but your total rate includes local taxes that vary by county and city.
- Baltimore City has the highest combined rate at 8.75 percent; some counties have no local tax and charge only 6 percent.
- Food purchased at grocery stores is not taxed in Maryland, but prepared food and restaurant meals are.
- Clothing and shoes under $100 per item are exempt from sales tax in Maryland.
- The tax applies at the point of sale, so the price tag does not include it—the tax is added at checkout.
Local sales tax rates by county and city
Maryland allows counties and some cities to add their own sales tax on top of the 6 percent state rate. These local rates range from 0 to 2.75 percent. Baltimore City charges the highest local rate at 2.75 percent. Montgomery County and Prince George's County each add 1 percent to the state rate.
Some counties have no local sales tax at all, meaning residents pay only the 6 percent state rate. These include Caroline, Cecil, Dorchester, Kent, Queen Anne's, Somerset, Talbot, Washington, and Worcester counties. If you live in or frequently shop in one of these areas, you pay less total tax than shoppers in Baltimore or the suburban counties around Washington, D.C.
The local tax rate applies to the same items as the state tax, so knowing your county's rate tells you the full amount you will pay. You can find your exact combined rate by entering your zip code on the Maryland Department of Revenue website or by asking a cashier at checkout.
What is and is not taxed in Maryland
Not everything you buy is subject to sales tax in Maryland. Unprepared food—groceries like bread, milk, vegetables, and meat bought at a supermarket—is not taxed. This applies whether you shop at a large chain or a small market. However, prepared food is taxed: restaurant meals, deli items, hot food from a grocery store, and food from a food truck all include sales tax.
Clothing and shoes under $100 per item are exempt from sales tax in Maryland. If you buy a shirt for $75, you pay no tax. If you buy a coat for $150, you pay tax on the full amount. This rule applies to each individual item, not your total purchase, so you could buy five $99 shirts and pay no tax on any of them.
Other items exempt from sales tax include prescription medications, medical equipment, and certain services like haircuts and repairs. Gasoline, utilities, and vehicle purchases are taxed differently and have their own rules. If you are unsure whether a specific item is taxed, ask the cashier or check the Maryland Department of Revenue website.
How sales tax is calculated at checkout
Sales tax in Maryland is calculated on the subtotal of taxable items only. If you buy a $20 shirt (no tax), a $15 restaurant meal (taxed), and a $10 grocery item (no tax), the tax applies only to the $15 meal. The cashier multiplies the taxable subtotal by your local combined rate and adds that amount to your bill.
Price tags in Maryland stores do not include sales tax, so the amount you see is not what you pay at the register. This is different from some other states where tax is included in the displayed price. Budget for the full amount including tax when you shop, especially for larger purchases. For a $100 taxable item in Baltimore City, you would pay $108.75 total.
Sales tax on online and mail orders
Maryland requires online retailers to collect and send sales tax to the state, just as brick-and-mortar stores do. This applies whether the retailer has a physical location in Maryland or not. Most large online retailers—Amazon, Walmart, Target, and others—now collect Maryland sales tax at checkout based on your shipping address.
If an online retailer does not collect Maryland sales tax at the time of purchase, you may owe use tax on that item when you file your state income tax return. Use tax is Maryland's way of collecting tax on purchases that escaped sales tax. In practice, most people do not report these purchases, but the law technically requires it. To avoid this complication, check whether a retailer collects Maryland tax before you complete your purchase.
Special sales tax situations
Maryland offers a sales tax holiday in August for school supplies and clothing. During this period, most clothing, shoes, and school supplies under certain price limits are sold without sales tax. The exact dates and item limits change each year, so check the Maryland Department of Revenue website in July to see what qualifies and when the holiday runs.
Some items are taxed at different rates or under different rules. For example, alcoholic beverages have their own tax in addition to sales tax. Motor vehicles, boats, and heavy equipment are taxed based on their purchase price but follow different rules than regular retail goods. If you are buying something expensive or unusual, it is worth asking the seller or checking the state website to understand the exact tax you will owe.
Frequently Asked Questions
Do I pay sales tax on groceries in Maryland?
No, unprepared food bought at a grocery store is not taxed. This includes bread, produce, meat, dairy, and canned goods. However, prepared food—deli items, hot food, and restaurant meals—is taxed at your local combined rate.
What is the sales tax in Baltimore City?
Baltimore City charges 8.75 percent total: 6 percent state tax plus 2.75 percent local tax. This is the highest combined rate in Maryland.
Are clothes taxed in Maryland?
Clothing and shoes under $100 per item are not taxed. Items $100 or more are taxed at your local combined rate. The $100 limit applies to each individual item, not your total purchase.
Do I have to pay sales tax on online purchases from Maryland retailers?
Yes, most online retailers now collect Maryland sales tax based on your shipping address. If a retailer does not collect it, you may owe use tax when you file your state income tax return, though enforcement is limited.
When is Maryland's sales tax holiday?
Maryland holds a sales tax holiday in August for school supplies and clothing. The exact dates and item limits change each year. Check the Maryland Department of Revenue website in July for current details.