You’re standing at a checkout counter in Bethesda, or maybe you're clicking "buy" on a new SaaS subscription for your business in Frederick. You see the tax line. It feels like it’s always changing, doesn't it? Honestly, keeping up with Maryland's tax code has become a bit of a part-time job lately.
The short answer is that Maryland’s general sales tax rate is 6%.
But that's just the surface. If you think it’s a flat 6% across the board for everything, you're going to be surprised when the bill actually hits. Between the new "Tech Tax," higher rates on your Friday night drinks, and the specific way digital goods are handled, the actual math gets messy fast.
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The 6% Baseline (and the 0% Local Myth)
Maryland is one of the few states where local jurisdictions—cities and counties—don't add their own sales tax on top of the state rate. This is actually pretty great. If you buy a TV in Baltimore, you pay 6%. If you buy that same TV in a tiny shop in Western Maryland, it’s still 6%.
Unlike Virginia or Pennsylvania, where you have to worry about which side of the street you’re on, Maryland keeps the "base" simple. Basically, there is no local sales tax in Maryland.
However, the state makes up for that simplicity by having different rates for different "buckets" of items.
How Much is MD Sales Tax for Different Stuff?
If you aren't buying "normal" stuff like a toaster or a book, the 6% rule usually goes out the window.
The 9% Alcohol Rate
Maryland treats your beer, wine, and spirits differently. If you’re at a liquor store or ordering a drink at a restaurant, the sales tax is 9%. This isn't a "sin tax" added on top of the 6%; it simply replaces it. This 9% rate has been a staple for a while, and it applies to the total price of the drink.
The 12% Cannabis Surge
If you’re visiting a dispensary, be ready for sticker shock. As of July 1, 2025, the tax on adult-use cannabis jumped from 9% to 12%. This was part of the Budget Reconciliation and Financing Act of 2025 (HB 352), which lawmakers passed to help close a massive budget gap.
The 6.5% Vehicle Excise Tax
Buying a car? You won't pay the 6% sales tax. Instead, you pay a 6.5% vehicle excise tax. This also went up recently (it used to be 6%). It’s based on the fair market value of the vehicle, and yes, it applies to both new and used cars.
The New 3% "Tech Tax" Everyone Is Talking About
This is the big one that catches business owners off guard. Effective July 1, 2025, Maryland introduced a 3% sales tax on specific IT and data services.
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If you are a business paying for web hosting, data processing, or custom computer systems design, you’re likely seeing this new 3% line item. It’s a "reduced" rate compared to the 6% general tax, but since many of these services were previously tax-exempt in Maryland, it feels like a 100% increase to most people.
The state targets specific NAICS codes for this:
- 518: Data processing and hosting.
- 519: Other information services (like web search portals).
- 5415: Computer systems design.
- 5132: Software publishing.
Here is where it gets tricky: If you buy SaaS (Software as a Service), the rate depends on how you use it. If it’s for "enterprise" or commercial use, it’s usually 3%. If you’re just a regular person buying a subscription for your personal laptop, it’s considered a "digital product" and you’ll get hit with the full 6%.
Things You Don't Pay Tax On (The Good News)
Maryland actually has some fairly generous exemptions compared to neighboring states. You won’t pay sales tax on:
- Most Groceries: Basic food items from a grocery store are 0% tax. However, "prepared food" (like a hot rotisserie chicken or a sandwich made at the deli counter) is still taxed at 6%.
- Prescription Drugs: Medicines and many medical devices are exempt.
- Residential Utilities: You generally don't pay sales tax on your home electricity or heating gas bills.
- Feminine Hygiene Products and Diapers: These were made exempt a few years back.
- Back-to-School Clothes: Every August, Maryland has a "Tax-Free Week." During this time, clothing and footwear priced under $100 are exempt from the 6% tax. It’s a chaotic time to shop, but the savings are real.
The Digital Goods "Catch-All"
Back in 2021, Maryland became one of the first states to start taxing "digital products" aggressively. This means your Netflix subscription, your Kindle books, and even that $0.99 app you bought on your phone are all taxed at 6%.
Even "streaming" services are included. If you can see it on a screen or hear it through a speaker and you paid for it, Maryland likely wants its 6%.
Why the Rates Keep Shifting
Honestly, Maryland is in a bit of a fiscal bind. The state has been staring down a multi-billion dollar deficit, mostly driven by the ambitious "Blueprint for Maryland’s Future" (a massive education funding overhaul). To pay for it, the 2025 legislative session saw several "stealth" increases.
They didn't raise the 6% base rate—that would be politically risky—but they increased the cannabis tax, the vehicle tax, and added that 3% tech tax. It’s a classic move: keep the headline number the same while widening the net.
Actionable Steps for 2026
If you're trying to figure out exactly how much you'll owe or how to manage these costs, here's what you actually need to do:
- Check your B2B invoices: If you run a company, look at your IT bills. If your provider isn't charging the 3% tax, you might actually be liable for "Use Tax" instead. Don't let an audit catch you later.
- Use the MPU Certificate: If you buy software or IT services that are used by employees in Maryland and other states, you shouldn't pay Maryland tax on the whole bill. You can issue a Multiple Points of Use (MPU) certificate to apportion the tax. This can save you thousands if half your team is in Virginia.
- Audit your "Prepared Food": If you're a non-profit or a school buying food for an event, make sure you aren't being charged the 6% if you have an exemption certificate. Restaurants often default to charging it unless you show the paperwork upfront.
- Watch the Vending Machines: One of the smaller changes in 2025 was the repeal of the snack food exemption for vending machines. Your office snacks now have a built-in 6% tax that wasn't there before.
Maryland's tax system is no longer a simple "six cents on the dollar" game. It's a patchwork of 3%, 6%, 6.5%, 9%, and 12% depending on what you’re doing and who you are. Staying on top of these specific categories is the only way to avoid surprises when the bill comes due.
Check the Maryland Comptroller’s website for the most recent "Tax Alerts" if you're dealing with high-dollar IT contracts. Those bulletins are where the real rules are buried.