Maryland sales tax for online sellers: nexus, permit and filing

What is the Maryland sales tax rate?

The rate is 6% statewide, and Maryland has no local sales taxes. A 9% rate applies to alcohol. Digital products, such as e-books, apps, streaming and downloaded software, are taxed at 6%. Since July 1, 2025, a 3% rate applies to data services, information technology services and software publishing, which covers much business software sold as a service.

When does an online seller have to collect in Maryland?

You must collect if you have a physical presence in Maryland, such as staff, an office or inventory, or if in the current or previous calendar year your gross revenue from sales into Maryland was more than $100,000 or you made 200 or more separate transactions. Either test is enough. Taxable and exempt sales both count, and several guides say sales made through marketplaces count as well.

How nexus works in general is covered in physical vs economic nexus and economic nexus explained.

What if you sell on Amazon, eBay or Etsy?

Maryland requires marketplace facilitators to collect and remit sales tax on the sales they facilitate, so you do not collect on those orders. Your own website and other direct channels remain your responsibility. See marketplace facilitator laws.

How do you register?

Register online with the Comptroller of Maryland, through Maryland Tax Connect, for a sales and use tax license. There is no fee. Aim to be registered by the start of the month after you pass a threshold.

What are the steps once you have nexus?

1. Confirm nexus

   Check your presence and your sales into Maryland against its threshold.

2. Register before collecting

   With the Maryland tax agency, as set out above.

3. Set up your store

   Charge the correct combined rate for each delivery address and product.

4. File and pay

   On the schedule Maryland assigns, including zero returns where required.

How are returns filed?

Returns are filed online and are due by the 20th of the month after the period. The Comptroller assigns monthly, quarterly or less frequent filing based on the tax you collect. A return is required for every period, including periods with no sales.

See how to file a sales tax return.

What digital and technology sales does Maryland tax?

These sales count towards the threshold too, so a software or digital seller can have Maryland nexus without shipping anything. See sales tax on SaaS.

Why does the 200-transaction test matter?

Because it can be met at a low sales value. A seller of $12 digital downloads reaches 200 Maryland sales after $2,400 of revenue, and from then must register and collect. Many states have dropped their transaction tests, but Maryland has kept its own, so count orders as well as dollars.

What else should sellers know?

• Sellers outside the US: the same rules apply wherever the business is based. See selling on Amazon US as a non-resident.
• Late registration: tax you should have collected becomes your own debt. See voluntary disclosure agreements and collected but not remitted.
• Records: keep sales by delivery address, tax collected and any certificates. See exemption certificates and sales tax audits.
• Stopping: returns stay due until the account is closed. See filing frequency and cancelling a sales tax permit.
• Store settings: switch on collection only once you are registered. See Shopify sales tax setup.

This guide is general information. It is not tax or legal advice for your situation.