How Maryland Sales Tax Works and What You Pay

Maryland's sales tax rate and what it covers

Maryland has a 6% state sales tax that applies to most goods you buy in stores. Some counties add their own local tax on top of that — Baltimore City adds 1%, and several other counties add between 0.5% and 1%. So depending on where you shop, your total sales tax could be anywhere from 6% to 7.75%.

The tax applies when you buy tangible items — things you can touch and take home. Clothing, groceries, electronics, furniture, and gas all get taxed. Services usually don't. If you get your hair cut or hire a plumber, there's no sales tax on that work.

Some items are taxed differently. Groceries for home use are taxed at a lower rate of 0%, but prepared food and restaurant meals are taxed at the full rate. Prescription medications are not taxed, but over-the-counter medicines and vitamins are.

Key Takeaways

• Maryland's base sales tax is 6%, and your county may add 0.5% to 1% more depending on where you live.
• Groceries you buy to cook at home are not taxed, but restaurant meals and prepared foods are taxed at the full rate.
• Prescription drugs are exempt from sales tax, but over-the-counter medicines and vitamins are taxed.
• Clothing and shoes under $100 per item are not taxed in Maryland, but items over that threshold are.
• Services like haircuts, repairs, and labor are generally not subject to sales tax.

Clothing and shoe exemptions

Maryland has an unusual rule: clothing and shoes under $100 per item are not taxed. This means if you buy a shirt for $45, you pay no sales tax. But if you buy a winter coat for $150, you pay tax on the full amount.

The $100 threshold applies to each individual item, not your total purchase. So if you buy five $25 shirts in one transaction, none of them are taxed. If you buy one $120 jacket, the whole thing is taxed. Accessories like hats, gloves, and belts under $100 are also exempt.

Which counties charge local sales tax

Not all Maryland counties add a local tax on top of the state rate. Here's how it breaks down: Baltimore City charges an additional 1%, bringing the total to 7%. Baltimore County, Howard County, and Montgomery County each charge an additional 0.75%, for a total of 6.75%. Anne Arundel County charges 0.5%, for a total of 6.5%.

The remaining counties — Allegany, Calvert, Caroline, Carroll, Cecil, Charles, Dorchester, Frederick, Garrett, Harford, Kent, Prince George's, Queen Anne's, Somerset, St. Mary's, Talbot, Washington, Wicomico, and Worcester — charge only the state rate of 6%.

When you make a purchase, the cashier or checkout system automatically calculates the correct rate for your location. You don't have to figure it out yourself.

What is and isn't taxed in Maryland

Food you buy from a grocery store to prepare at home is not taxed. This includes raw meat, produce, bread, milk, and canned goods. But the moment that food is prepared or ready to eat, it's taxed. A rotisserie chicken from the grocery store deli is taxed. A sandwich from a restaurant is taxed. Candy and soft drinks are also taxed because they're considered prepared food.

Prescription medications are exempt, but over-the-counter drugs like pain relievers, cold medicine, and allergy pills are taxed. Vitamins and supplements are taxed. Medical equipment like wheelchairs and oxygen tanks are not taxed if you have a prescription.

Newspapers and magazines are not taxed. Textbooks are not taxed if they're used for a course at a school or college. School supplies like pencils and notebooks are taxed. Gasoline is taxed at the pump as part of the state's fuel tax, which is separate from sales tax.

Online purchases and sales tax

If you order something online from a retailer that has a physical location in Maryland, or from a large national retailer, sales tax is usually charged at checkout. The rate depends on the address where the item is being shipped. If it's going to Baltimore City, you pay 7%. If it's going to a county with no local tax, you pay 6%.

Some smaller online sellers don't charge Maryland sales tax, but you may still owe it. Maryland law says residents should report and pay sales tax on out-of-state purchases when they file their state income tax return, though this is rarely enforced for individual shoppers.

Tax-exempt purchases and who qualifies

Certain organizations can make purchases without paying sales tax. Nonprofits, schools, and government agencies can buy items tax-free if they have a resale certificate or tax-exempt certificate from the Maryland Department of Revenue. Individuals cannot get a blanket exemption from sales tax.

If you're buying something for resale — for example, you're a retailer buying inventory — you don't pay sales tax on that purchase. You'll need a resale certificate to show the seller. But if you're buying for personal use, you pay tax.

Frequently Asked Questions

Do I pay sales tax on used items?

Sales tax applies to used goods sold by retailers, just like new items. If you buy a used car from a dealership, you pay sales tax. If you buy a used item from an individual at a garage sale or online marketplace, there's typically no sales tax involved because it's a private sale, not a retail transaction.

Is sales tax added to the price shown in the store?

Yes. The price tags in Maryland stores show the price before tax. Sales tax is added at the register. So if an item is marked $10 and you're in a 6% tax area, you'll pay $10.60 at checkout.

What if I buy something in one county and use it in another?

You pay sales tax based on where you make the purchase, not where you use the item. If you buy something in a county with 6% tax and take it to a county with 6.75% tax, you still paid only 6%. There's no additional tax when you cross county lines.

Are there any items that are always tax-free in Maryland?

Yes. Prescription medications, groceries for home preparation, newspapers, and textbooks used for school courses are always tax-free. Clothing and shoes under $100 per item are also always tax-free, regardless of which county you're in.