Maryland Sales Tax Guide for eCommerce Businesses
Maryland Sales Tax Guide for eCommerce Businesses
Sales Tax eBook
Contact Us
Maryland's Sales Tax Authority
State Phone Information
800-638-2937
Member of the Streamlined Sales Tax Governing Board?
No
Tax percent range for remote sellers in Maryland
6%
The information on this page is for reference only and should not be used as legal or tax advice. If you are concerned about your sales tax obligations it is advised to hire a professional.
This Page was last updated: December 2021
Do you need to collect sales tax in Maryland?
If you have nexus in Maryland you will need to first register, then collect and remit sales tax. There are two main ways that sellers can have nexus: physical or economic.
Physical nexus - A seller physical/ tangible presence in the state.
Economic nexus - A remote seller (no physical presence) passes the threshold tor total revenue or number of transactions.
Does Maryland charge sales tax on shipping?
In Maryland, the duty to charge sales tax for shipping and handling depends on the invoice type.
A seller who states shipping charges separately on the bill is not required to charge tax.
Handling charges are taxable. If the shipping and handling charges are combined on the invoice then the seller has to charge tax for both shipping and handling.
Do you have physical nexus in Maryland?
A seller has physical nexus in Maryland if they have any of the following:
Permanently or temporarily maintains, occupies, or uses any office, sales or sample room, or distribution, storage, warehouse, or other place for the sale of tangible personal property or a taxable service directly or indirectly through an agent or subsidiary;
Has an agent, canvasser, representative, salesman, or solicitor operating in the state for the purpose of delivering, selling, or taking orders for tangible personal property or a taxable service;
Enters the state on a regular basis to provide service or repair for tangible personal property;
Regularly uses the person's vehicles to sell or deliver tangible personal property or a taxable service for use in the State
Do you have economic nexus in Maryland?
Maryland's Economic Nexus Sales Threshold
$100,000
Economic Transactions Threshold
Or 200 transactions
Economic Nexus Evaluation Period
Either Current or Previous Calendar Year
Economics Nexus Effective Date
October 1, 2018
What types of sales are included in Maryland's Economic Nexus Sales Threshold?
Gross Sales
All sales including Marketplace Facilitator sales are included in the Economic Nexus Sales Threshold
How does Maryland treat exempt transactions when calculating economic nexus?
Exempt sales of tangible personal property, software, and digital goods are included; exempt services are not included in the threshold
Does Maryland have a Marketplace Facilitator Law?
Yes, Marketplace Facilitators are required to collect and remit sales tax on behalf of sellers on their platform.
Filling Sales Tax
When are Returns Due?
Maryland sales tax returns are always due the 20th of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.
How often are Sales Tax Returns filed?
Monthly or Quarterly or Semi-annually or Annually
This period is determined by the state typically by assessing your volume of sales in the state.
Options for filing sales tax returns:
Online - Online filing is required if your previous year tax liability was $1,000,000 or more - File online at the Maryland Department of Revenue’s Comptroller’s Office website
Mail - Use Form 202 to file and pay through the mail
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