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Maryland will implement a reduced 3% sales tax on digital services, including software, digital publishing, and digital products, from July 2025, replacing the previous 6% sales tax struck down by state courts.
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The original 6% digital services tax was blocked in 2022 by Maryland courts for violating federal law and constitutional clauses, but digital services remain a focus of state taxation strategies.
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A separate 2021 law imposes a sales tax on digital advertising services’ annual gross revenues, targeting providers earning over $1 million, while many US states also tax digital services.
Source: vatcalc.com
