Understanding Maryland’s Sales and Use Tax: Rates, Exemptions, and Nexus Rules

• Sales tax applies to most tangible goods and certain services in Maryland unless exempt.
• Transactions involving electricity, natural gas, and room rentals are treated like tangible goods.
• Use tax applies to goods purchased outside Maryland without sales tax and brought into the state.
• Maryland has a 6% statewide sales and use tax with no local taxes.
• Car and recreational vehicle rentals are taxed at 11.5%, truck rentals at 8%, and alcoholic drinks at 9%.
• Tax-exempt transactions include sales to exempt organizations and sales by exempt organizations.
• Casual or isolated sales under USD 1,000 not through a dealer or auctioneer are exempt.
• Certain services are generally exempt unless specified as taxable.
• Nexus rules require a connection with Maryland through physical or economic presence.
• Physical nexus includes maintaining a location, having employees, or conducting business in Maryland.

Source: vatabout.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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