Sales Tax Nexus in Maryland: What Online Sellers Need to Know
The Short Answer
Maryland triggers sales tax obligations at $100,000 in sales OR 200 transactions. Single statewide rate, no local additions. Maryland made history in 2021 as the first state to broadly tax digital products and SaaS (HB 932, effective March 14, 2021). If you sell streaming subscriptions, SaaS, or digital downloads into Maryland, you've been collecting since 2021 — or should have been.
Economic Nexus Threshold
- Dollar threshold: $100,000 in gross receipts from retail sales into Maryland (current or prior calendar year)
- Transaction threshold: 200 or more separate transactions
- Either/Or: Meeting either triggers the obligation
- Effective date: October 1, 2018
Does Maryland Count Marketplace Sales Toward Your Threshold?
Marketplace facilitators collect and remit Maryland sales tax on their facilitated transactions. Whether those sales count toward your own threshold should be confirmed — Taxero evaluates this during onboarding.
What Taxable Products Look Like in Maryland
- State rate: Flat statewide — no local additions anywhere
- Groceries: Most food for home consumption exempt
- OTC drugs: Exempt in Maryland
- Clothing: Taxable
- SaaS and digital goods: Taxable since March 14, 2021 (HB 932). Maryland taxes streaming services, downloaded music, video, books, apps, and SaaS/cloud software. HB 791 (2022) made some narrowing clarifications, but the broad digital goods taxability remains in effect.
If you've been selling SaaS or digital subscriptions into Maryland since March 2021 without collecting, you have a past-period exposure. A VDA can resolve this with reduced penalties.
How to Register in Maryland
- Portal: Maryland Comptroller at interactive.marylandtaxes.gov
- Cost: Free
Filing Requirements
Monthly, quarterly, or annual based on liability. Due 20th of the following month. File electronically via the Comptroller's eFiling system.
What Happens If You Don't Register
Late filing: 10% of tax due. Interest at statutory rate.
How Taxero Handles Maryland
Maryland's digital goods expansion (March 2021) is one of the most important recent changes in US sales tax. Taxero applies the post-HB 932 taxability rules for SaaS and digital products, handles registration and quarterly filings at the flat rate.
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Related resources
This article is for general informational purposes only and isn't tax advice. Sales tax rules vary by state and change often — consult a qualified tax professional about your specific situation before acting on anything here.
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