State guide · MD
Maryland sales tax and property tax
State law forbids county sales taxes, the 2025 budget added a 3% tax on tech services, and a homeowner's assessment can rise only so fast.
Facts read on official Maryland pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 6%
- Local sales taxes
- None
- Groceries
- Exempt from the state rate
- Clothing
- Taxed like other goods
- Median property tax
- $4,144
- Effective property rate
- 0.95% · #21 of 51
Maryland's sales tax is 6% in every county and in Baltimore City, because state law bars counties, municipalities and special districts from creating a sales tax of their own. The 2025 budget law widened the base: since July 1, 2025, data processing, web hosting, IT consulting and software publishing services pay a separate 3% rate, cannabis went from 9% to 12%, and vending-machine snacks lost their food exemption. Alcohol pays 9% and cars a 6.5% titling tax instead of sales tax. Groceries and prescription drugs are exempt and clothing is taxed, except during two tax-free periods each year, one for Energy Star appliances in February and one for clothing in August. On property, the State Department of Assessments and Taxation revalues homes every three years and phases increases in, while the homestead tax credit stops the taxable assessment of a main home from rising more than 10% a year for the State tax, less where the county chooses. The Census median bill is $4,144, rank 12 of 51, on a $436,300 home, 0.95% of value.
Total to pay
$106.00
Sales tax $6.00 · 6% of the price
| Price before tax | $100.00 |
| State tax · 6% | $6.00 |
| Local tax · not charged on this item | $0.00 |
| Total | $106.00 |
Rule applied: general state rate. How this is calculated.
Sales tax in Maryland
Section 11-102 of the Tax-General Article settles the local question: apart from taxes already in force on January 1, 1971, no county, city or special taxing district may impose a retail sales or use tax. So the calculator above needs no local rate, and the tax on a sale is the state's bracket table at 6%, a few cents' rounding aside.
The newer story is services. From July 1, 2025, buyers of data processing, hosting, IT consulting or software publishing services, the NAICS codes 518, 519, 5132 and 5415, pay 3%: a $5,000 IT consulting invoice now carries $150 of tax, half of what the general rate would give. The same law raised the adult-use cannabis rate to 12% and removed two exemptions, vending-machine snack food and bullion or coins sold for more than $1,000. Alcoholic beverages stay at 9%, vaping devices carry far higher rates, and peer-to-peer car sharing pays 8%.
Vehicles are taxed at titling, not at the register: the excise is 6.5% of fair market value, $2,470 on a $38,000 car. Both tax-free periods are fixed by statute. The Energy Star weekend ran February 14 to February 16, 2026, covering appliances such as air conditioners, washers, dryers, heat pumps and refrigerators. The back-to-school week ran August 9 to August 15, 2026: clothing and footwear priced $100 or less per item and the first $40 of a backpack were exempt, so $95 boots saved $5.70, while jewelry, watches and handbags stayed taxed.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 6% | no | General state sales and use tax of 6%, applied with a statutory bracket table (Tax-General 11-104). Since July 1, 2025 a separate 3% rate applies to data, IT and software publishing services (NAICS 518, 519, 5132, 5415). Other special rates: 9% alcoholic beverages, 12% cannabis, 8% peer-to-peer car sharing. Counties and cities cannot levy a sales tax. |
| Groceries (food for home) | 0% | no | Food for consumption off the premises sold by a vendor operating a substantial grocery or market business is exempt; food for immediate consumption (heated food, salad bars, etc.) is taxable. Since July 1, 2025 vending-machine snack foods and cannabinoid beverages are no longer exempt. |
| Clothing | 6% | no | Clothing is taxed at 6% except during the August back-to-school tax-free week (items of $100 or less). |
| Prescription drugs | 0% | no | |
| Data, information technology and software publishing services (NAICS 518, 519, 5132, 5415) | 3% | New taxable services from July 1, 2025 (Chapter 604 of the Acts of 2025). | |
| Adult-use cannabis | 12% | Raised from 9% on July 1, 2025. | |
| Alcoholic beverages | 9% | ||
| Motor vehicles (vehicle excise / titling tax) | 6.5% | 6.5% of fair market value (3.5% for rental vehicles), collected at titling instead of sales tax. | |
| Electronic smoking devices | 20% | 60% on vaping liquid in containers of 5 ml or less; 12% on tobacco pipes. |
Local sales taxes
Maryland has no local sales taxes.
Sales tax holidays in 2026
| Holiday | Dates | What qualifies |
|---|---|---|
| Energy Star tax-free weekend | February 14, 2026 to February 16, 2026 | Energy Star air conditioners, clothes washers and dryers, furnaces, heat pumps, standard refrigerators, dehumidifiers, boilers, programmable thermostats, CFL bulbs, and solar water heaters |
| Back-to-school tax-free week | August 9, 2026 to August 15, 2026 | clothing and footwear priced $100 or less per item (accessories such as jewelry, watches and handbags excluded) and the first $40 of a backpack or bookbag |
Dates derived from the statutory rules: Saturday before the third Monday in February through that Monday; second Sunday in August through the following Saturday.
Worth knowing about Maryland sales tax
- Since July 1, 2025 Maryland taxes data processing, web hosting, IT consulting and software publishing services at a reduced 3% rate. source
- The 2025 budget law repealed the sales tax exemptions for vending-machine snack foods and for bullion and coins sold for more than $1,000. source
- Cars pay a 6.5% excise tax at titling rather than the 6% sales tax. source
- State law prohibits Maryland counties and cities from creating their own sales tax, so 6% applies statewide. source
- Maryland has two tax-free periods a year: Energy Star appliances on Presidents' Day weekend and clothing under $100 in the second week of August. source
- The cannabis sales tax rose from 9% to 12% on July 1, 2025. source
Property tax in Maryland
Three layers of government tax a Maryland home: the State, the county or Baltimore City, and the municipality where there is one. Values come from a single State agency: the State Department of Assessments and Taxation reinspects each property every three years and phases any increase in over the cycle, one third a year; if the value has not increased, the most recent valuation stays. The property tax year runs from July 1 to June 30.
The homestead tax credit then caps what the phase-in can pass on. For an owner-occupied main residence, the assessment used for the State tax cannot rise more than 10% a year, and each county and Baltimore City picks its own cap between 0% and 10%, set by law before March 15 for the year that starts July 1. Suppose SDAT raises a home from $400,000 to $490,000: the phase-in gives $430,000 in the first year. In a county with a 5% cap, the county tax is charged on $420,000, and the tax on the other $10,000 is credited. The State tax, with its 10% cap, uses the full $430,000.
The credit requires a one-time application to SDAT and that you live in the home by July 1. Lying to obtain it costs a penalty of 25% of the credit received in each year you did not qualify. At the typical ratio of 0.95%, a $436,300 home pays about $4,145 a year, but county rates vary widely. Income-based credits exist too; SDAT's own pages could not be read for their amounts, so they are not given here.
Property tax on a home in Maryland
Typical bill per year
$4,145
| Per month | $345 |
| Median effective rate in Maryland | 0.95% |
| Median bill paid | $4,144 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | Maryland |
|---|---|
| Median home value (owner-occupied) | $436,300 |
| Median real estate taxes paid | $4,144 |
| with a mortgage | $4,255 |
| without a mortgage | $3,893 |
| Effective rate (tax ÷ value) | 0.95% |
| Rank by effective rate (1 = highest) | 21 of 51 |
| Rank by median bill | 12 of 51 |
How the taxable value is set
Real property is revalued by physical inspection on a 3-year cycle; increases are phased in over the three years (one-third, two-thirds, then the full increase); if value has not increased, the most recent valuation applies. Who levies the tax: state, counties (and Baltimore City) and municipalities; assessments are made by the State Department of Assessments and Taxation (SDAT)
Worth knowing about Maryland property tax
- Maryland caps yearly growth of a homeowner's taxable assessment at 10% for the State tax, and many counties choose a lower cap. source
- Counties and Baltimore City must set their homestead credit percentage by law before March 15 for the year starting July 1. source
- Assessment increases are phased in over a 3-year cycle: one-third of the increase each year. source
- Willful misrepresentation to obtain the homestead credit carries a penalty of 25% of the credit received in each year of non-qualification. source
- The Maryland property tax year runs from July 1 to June 30. source