Are Groceries Taxed in Maryland?

In Maryland, groceries are generally not subject to sales tax. This means that most food items purchased for home consumption are exempt from the state’s 6% sales tax. For residents, this provides some relief when grocery shopping, as they can purchase everyday food items without paying additional tax.

However, there are important exceptions to this general rule. While most raw food items—like fruits, vegetables, meat, dairy products, and pantry staples—are exempt from sales tax, prepared foods are taxed. Prepared foods are those that have been made and packaged for immediate consumption, such as meals sold in restaurants, fast food establishments, or takeout options.

What Qualifies as Grocery Items in Maryland?

In Maryland, groceries refer to unprepared, raw food items intended for human consumption. These include:

• Fruits and Vegetables: Fresh produce sold at grocery stores, markets, or farms.
• Meat and Poultry: Raw cuts of meat, poultry, and fish purchased for home cooking.
• Dairy Products: Milk, cheese, yogurt, eggs, and similar items.
• Baked Goods: Basic ingredients for baking or raw, unprepared items like bread, flour, and sugar.
• Canned Goods and Packaged Food: Items such as canned vegetables, pasta, rice, and cereal.

These groceries are exempt from the 6% sales tax in Maryland, helping to keep the cost of everyday food shopping lower for consumers.

What Are Prepared Foods?

Prepared foods, which are subject to the 6% sales tax in Maryland, are foods that are ready for consumption and often require little or no further preparation. These items are typically sold by restaurants, fast food chains, or any vendor that provides food meant to be eaten immediately. Examples include:

• Restaurant Meals: Meals ordered at sit-down restaurants, whether you dine in or take the food to go.
• Takeout and Delivery Orders: Food prepared and sold for immediate consumption, including items from delis or takeout restaurants.
• Ready-to-Eat Snacks: Foods like sandwiches, hot dogs, or pizza that are sold as ready-to-eat items at grocery stores or delis.

Essentially, if food is sold with the intent for immediate consumption, it will be taxed.

Conclusion

Groceries are generally not taxed in Maryland, meaning that everyday food items bought for home use are exempt from the state’s 6% sales tax. However, prepared foods, such as those purchased at restaurants or as takeout, are subject to sales tax. By understanding these distinctions, Maryland residents can better plan their grocery shopping and manage their overall expenses.