Maryland’s sales tax system imposes a 6% tax on most goods and services. However, certain items and categories are exempt from this tax. Understanding these exemptions can help residents save money and ensure compliance when filing taxes. This guide provides a comprehensive overview of items exempt from Maryland state sales tax, empowering shoppers and business owners to make informed decisions.
One of the most common exemptions is for groceries. Most unprepared and staple food items are tax-exempt, including:
Exceptions: Certain items like candy, soft drinks, and alcoholic beverages are taxable, even if purchased from grocery stores. Be sure to check your receipts to distinguish between taxable and non-taxable food items.
Maryland exempts all prescription medications from sales tax, including:
Durable medical equipment, such as wheelchairs, crutches, and certain prosthetics, is also tax-exempt when prescribed by a medical professional.
Every year, Maryland holds a “Shop Maryland Tax-Free Week,” during which clothing and footwear priced under $100 per item are tax-exempt. This is an excellent opportunity for residents to save on back-to-school shopping and other apparel needs.
Certain residential utilities are exempt from Maryland sales tax, including:
This exemption helps to reduce the financial burden of essential living costs, especially during extreme weather seasons.
While many services in Maryland are taxable, some categories remain exempt, such as:
Taxable services often include repairs, cleaning, and certain entertainment-related services.
Qualifying non-profits, religious organizations, and schools are eligible for tax exemptions on purchases directly related to their operations. These groups typically need to present an exemption certificate at the time of purchase.
Purchases of prepared meals and beverages from restaurants, cafeterias, or convenience stores are subject to sales tax. This includes:
Maryland taxes digital products and services, such as:
High-value goods, such as jewelry and certain electronics, remain taxable under the standard sales tax rate.
Federal and state government agencies may qualify for sales tax exemptions on certain purchases. Military personnel may also benefit from specific exemptions, depending on the nature of the transaction.
To support the agricultural industry, Maryland exempts many farming supplies and equipment, including:
To benefit from sales tax exemptions, consumers and organizations need to:
For detailed instructions and forms, visit the Maryland Comptroller’s website.
Knowing which items are exempt from Maryland sales tax can save you money and help you avoid compliance issues. Key exemptions include groceries, prescription medications, and certain utilities, while digital goods and prepared foods remain taxable. Stay informed about changes to tax laws and utilize available resources to ensure accurate tax filings.
For the latest updates, visit the Maryland Comptroller’s website.
No, bottled water is typically exempt from sales tax unless sold in individual servings for immediate consumption.
School supplies are generally taxable but may be included in the annual “Shop Maryland Tax-Free Week” if priced under the qualifying threshold.
Only prescribed medical supplies and certain durable equipment are exempt. Over-the-counter items are generally taxable.
Yes, streaming services and other digital subscriptions are taxable in Maryland.
No, vehicles are subject to a separate excise tax, not the general sales tax.
