Maryland Sales Tax: What You Pay and Where It Applies

Maryland's Sales Tax Rate and What It Covers

Maryland charges a 6% sales tax on most retail purchases. This is the statewide rate that applies when you buy tangible goods — items you can touch and take home — at a store, online, or through mail order. The tax is calculated on the sale price before any discounts are applied.

Not everything sold in Maryland is taxed at this rate. Some items are taxed at different rates, some are not taxed at all, and some depend on how they are sold. Understanding which category your purchase falls into helps you know what to expect at checkout.

Key Takeaways

• Maryland's statewide sales tax is 6% on most tangible goods, though some counties add a local tax on top of this.
• Groceries, prescription medications, and medical equipment are not subject to sales tax in Maryland.
• Services — like haircuts, repairs, and professional fees — are generally not taxed, with a few exceptions.
• Some counties in Maryland charge an additional local sales tax ranging from 0.5% to 1%, so your total tax rate depends on where you shop.
• Online purchases from out-of-state sellers are subject to Maryland sales tax if the seller has a physical presence in the state.

Items That Are Not Taxed in Maryland

Certain purchases are completely exempt from Maryland sales tax. Groceries and food items intended for home consumption are not taxed — this includes bread, milk, vegetables, meat, and canned goods. However, prepared foods, restaurant meals, and items sold hot or ready-to-eat are taxed.

Prescription medications are not taxed in Maryland. Over-the-counter medications like pain relievers and cold medicine are taxed, but prescription drugs filled at a pharmacy are exempt. Medical equipment such as wheelchairs, walkers, and diabetic supplies are also not taxed when prescribed by a doctor.

Clothing and footwear are not taxed in Maryland, with no dollar limit. This applies to everyday wear, work clothes, and shoes. Accessories like belts, hats, and gloves are also exempt.

Services and What Happens When You Buy Them

Most services are not subject to Maryland sales tax. This includes haircuts, dental work, car repairs, plumbing, electrical work, and professional consulting. When you pay a plumber or accountant for their labor, that fee is not taxed.

However, if you buy a tangible product as part of a service, the product portion may be taxed. For example, if a mechanic replaces your car's oil and filter, the oil and filter are taxable items, but the labor is not. The shop will typically show these separately on your receipt.

Certain services do face sales tax in Maryland. These include telecommunications services (phone and internet), hotel and motel stays, and rental car charges. These are treated as taxable transactions even though they are services rather than goods.

Local Sales Tax in Maryland Counties

In addition to the 6% statewide rate, some Maryland counties charge a local sales tax. This local tax ranges from 0.5% to 1% depending on the county, meaning your total sales tax rate can be between 6% and 7%. The local tax is collected by the same retailer and sent to the county government.

The following counties have local sales taxes: Anne Arundel, Baltimore City, Baltimore County, Caroline, Carroll, Cecil, Charles, Dorchester, Frederick, Garrett, Harford, Howard, Kent, Montgomery, Prince George's, Queen Anne's, Somerset, Talbot, Washington, Wicomico, and Worcester. If you shop in one of these counties, your receipt will show both the state and local tax combined.

If you shop in a county without a local tax, you pay only the 6% state rate. Knowing which county you are in helps you understand your total tax bill.

Online Purchases and Out-of-State Sellers

When you buy something online from a retailer outside Maryland, Maryland sales tax still applies if the seller has a physical presence in the state — meaning they have a store, warehouse, or office location in Maryland. Large retailers like Amazon, Walmart, and Target have physical locations in Maryland, so they collect Maryland sales tax on orders shipped to Maryland addresses.

If an out-of-state seller has no physical presence in Maryland, they are not required to collect Maryland sales tax at checkout. However, Maryland residents are technically responsible for paying "use tax" on these purchases when they file their state income tax return. In practice, most individuals do not report these purchases, but the tax obligation exists.

Special Cases: Vehicles, Fuel, and Utilities

Vehicle purchases in Maryland are subject to sales tax, but the tax is calculated on the sale price, not the vehicle's value. When you buy a car, truck, or motorcycle from a dealer, Maryland sales tax applies to the purchase price. If you trade in a vehicle, the tax is calculated on the net amount you pay after the trade-in credit.

Gasoline and diesel fuel are not subject to Maryland sales tax. Instead, Maryland charges a fuel tax per gallon, which is separate from sales tax. This tax is included in the price you see at the pump.

Electricity, natural gas, and water are not subject to sales tax in Maryland. These utilities are taxed under a different system and the tax appears as a line item on your utility bill rather than at the point of purchase.

How Sales Tax Appears on Your Receipt

When you check out at a store or online, the sales tax is calculated automatically and added to your subtotal. Your receipt shows the subtotal (the price before tax), the tax amount, and the total you owe. If you are shopping in a county with local sales tax, the receipt may show the state and local portions separately, or it may show them combined as one line.

If you are buying a mix of taxable and non-taxable items — for example, groceries and a magazine — the cashier's register separates them automatically. Only the taxable items are charged tax. This is why your receipt might show a lower tax rate than 6% if some of your purchase was exempt.

Frequently Asked Questions

Do I pay Maryland sales tax on clothes?

No. Clothing and footwear are not taxed in Maryland, regardless of price. This includes everyday wear, work clothes, shoes, socks, and accessories like belts and hats. The exemption applies to all clothing items with no dollar limit.

Is restaurant food taxed in Maryland?

Yes. Food prepared and sold hot or ready-to-eat is subject to Maryland sales tax. This includes restaurant meals, takeout, deli items sold hot, and prepared foods from grocery store hot bars. Groceries you buy to cook at home are not taxed.

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 on items you buy from out-of-state sellers who do not collect Maryland sales tax. You are responsible for reporting use tax on your state income tax return, though most individuals do not. Both taxes are the same rate.

Do I pay sales tax on prescription glasses or contacts?

Prescription eyeglasses and contact lenses are taxed in Maryland. The frames, lenses, and contacts themselves are tangible goods subject to the 6% state sales tax. However, the eye exam performed by an optometrist or ophthalmologist is a service and is not taxed.

What if I buy something online from a Maryland store?

Maryland sales tax applies to online purchases from Maryland retailers, just as it does for in-store purchases. The retailer collects the tax at checkout and includes it in your total. This applies whether you pick up the item in-store or have it shipped to your address.