Yes—Maryland’s sales tax is indeed 6%. It applies to most retail sales across the state and remains consistent regardless of city or county. It should be noted that there are no surprise markups as well in accordance with where the transaction takes place. This situation makes the Maryland sales tax rate one of the more predictable state-level taxes in the U.S.
Yet, just saying it’s 6% does not signify everything gets taxed the same way.
It is correct that the state of Maryland enforces a flat 6% sales tax rate on most tangible goods and certain services. Whether a purchase is made in Baltimore or Bethesda, the rate remains the same. As it was indicated above, there are no additional city or county sales taxes layered on top. The result? Consumers and businesses should only take a single rate into consideration when trying to calculate sales tax in Maryland.
It should be acknowledged that not every purchase triggers the 6% rate. A number of Maryland sales tax exemptions exist for items deemed fundamental or industry-specific. We present a few notable examples below:
So, even though the Maryland sales tax rate is 6%, what actually gets taxed may vary widely in parallel to the item.
This is where it gets interesting. The food tax in Maryland is generally 0%. In other words, grocery staples like fruits or vegetables and dairy are not taxed.
But meals prepared and sold to go? Those are taxed.
If someone is purchasing a rotisserie chicken or soda at checkout, expect the 6% Maryland sales tax rate to apply.
Indeed, it is a simple matter of multiplying the price by 0.06 in order to calculate sales tax in Maryland. No need to worry about separate municipal rates.
For instance:
If an item is exempt, no need to factor in anything.
So, is the Maryland tax 6%? In a nutshell, yes—on paper and in practice. But whether that 6% applies to the purchase changes in accordance with what you’re buying. Where Maryland sales tax exemptions are applied is vital, particularly when it comes to the food tax in Maryland. If you are unsure about sales tax exemptions, contact Watter CPA to schedule your initial consultation.
