What Is the Sales Tax in Maryland Retail?

In Maryland, the sales tax rate for retail transactions is set at 6%. This rate applies to most goods and services purchased at retail establishments, including everything from clothing and electronics to furniture and other tangible personal property. The sales tax is added to the purchase price at the time of sale, and it is the responsibility of the retailer to collect the tax and remit it to the state.

The 6% sales tax in Maryland is fairly straightforward, but understanding how it impacts your total cost can help you budget effectively. For example, if you purchase an item for $100, the sales tax would be $6 (6% of $100). This means the total cost of the item, including tax, would be $106. The retailer will typically show the sales tax as a separate line item on your receipt so you can see the breakdown.

Sales Tax on Common Retail Purchases

The 6% sales tax rate is applied to a wide range of retail purchases, such as:

• Clothing and Apparel: Most clothing items are subject to the 6% sales tax, unless they are specifically exempt.
  
• Electronics: Electronics like computers, smartphones, and televisions are taxable under Maryland’s sales tax rules.
  
• Furniture and Appliances: Furniture and home appliances are generally taxable.
  
• Tangible Personal Property: Other goods such as toys, books, and household items are also subject to the sales tax.
  

Sales Tax Exemptions in Maryland

While most retail purchases are subject to the 6% sales tax, there are a few notable exemptions that may apply depending on the nature of the purchase:

• Groceries: Most food products sold for human consumption are exempt from sales tax. However, prepared foods (like those sold in restaurants) are taxable.
  
• Prescription Medications: Prescription drugs are not subject to the state’s sales tax.
  
• Certain Services: Some services, such as medical and legal services, are exempt from sales tax. This can also include certain types of repairs or professional services.
  

For example, if you purchase a $100 bag of groceries in Maryland, you won’t pay any sales tax. However, if you buy a $100 meal at a restaurant, the meal will be subject to the full 6% sales tax, adding $6 to your total.

Conclusion

Maryland’s 6% sales tax is applied to most retail transactions, including items like clothing, electronics, and furniture. However, certain goods and services, such as groceries and prescription medications, are exempt from this tax. By understanding how the sales tax works and which items are exempt, consumers can be more informed when making purchases and calculating the total cost of their shopping.