Maryland Sales Tax Guide for SaaS and E-Commerce Businesses 2025

If you sell SaaS, digital products, tangible goods, or marketplace sales in Maryland, you may be required to collect and remit sales & use tax. The statewide rate is 6%, with no local add-ons.

As of July 1, 2025, Maryland distinguishes between B2B vs B2C SaaS:

• 3% rate for B2B SaaS (enterprise/commercial system use)
• 6% rate for B2C SaaS (individual/consumer use)

This guide explains Maryland’s SaaS and e-commerce taxability, economic nexus thresholds, filing rules, and how to register with the Maryland Comptroller.

Last updated: September 2025

Quick Reference: Maryland Sales & Use Tax (2025)

SaaS & Digital Product Taxability in Maryland

Maryland law makes SaaS and digital products taxable. Key rules:

• B2B SaaS (3%): When SaaS or IT services are sold for use in enterprise/commercial computer systems, the reduced 3% rate applies. (Technical Bulletin No. 56)
• B2C SaaS (6%): When SaaS is sold to individuals/consumers or non-enterprise users, the standard 6% rate applies.
• Digital products: Subscriptions, streaming, e-books, digital codes, apps/games, and online access are taxable. (Business Tax Tip #29)
• Custom software: Exemption repealed effective July 1, 2025 — now taxable if delivered electronically.
• Bundled transactions: If a digital product is the primary component of a package, the entire bundle may be taxed.

E-Commerce & Tangible Goods in Maryland

Maryland’s sales tax applies to most tangible personal property (TPP) and e-commerce sales delivered into the state:

Maryland uses destination-based sourcing, meaning tax is calculated based on the customer’s delivery address. (Sales & Use Tax Overview)

Economic Nexus in Maryland

Remote sellers must register if they exceed:

• $100,000 in gross revenue OR 200 transactions into Maryland during the current or previous calendar year.
• Applies to both direct sellers and marketplace facilitators.
• Rule effective since October 1, 2018.

Source: Marketplace Facilitators Alert

Filing & Due Dates

• Frequency: Assigned by Comptroller (monthly, quarterly, or annually depending on sales).
• Due date: Returns generally due by the 20th of the month after the reporting period.
• Zero returns: Required even if no taxable sales occur.
• How to file: Register and file via MD Tax Connect.

Penalties & Compliance Notes

• Late filing penalty: Up to 25% of the tax due.
• Late payment penalty: Penalties may apply in addition to interest if payments are not made on time.
• Interest: Charged on unpaid balances from the original due date. For 2025, the Comptroller’s office set the interest rate at 11.4825% annually.
• Appeals: Taxpayers generally have 30 days from the mailing date of an assessment to file an appeal or request a hearing before collection actions begin.
• Multiple Points of Use (MPU) certificates: Buyers may allocate digital product tax across states if usage spans multiple jurisdictions. (Business Tax Tip #29)

See: Maryland Comptroller – Penalties and Interest Charges.

FAQs: Maryland Sales Tax for SaaS & E-Commerce

Is SaaS taxable in Maryland?
Yes. SaaS and IT services are taxable: 3% for B2B SaaS (enterprise use) and 6% for B2C SaaS (consumer use). (Technical Bulletin No. 56)

Are tangible goods sold online taxable in Maryland?
Yes. Most tangible personal property delivered into Maryland (e.g., clothing, electronics, furniture) is subject to the 6% statewide rate. (Sales & Use Tax Overview)

What digital products are taxable?
Streaming services, e-books, games, subscriptions, and digital codes are all taxable. (Business Tax Tip #29)

What is Maryland’s economic nexus threshold?
Remote sellers must register once they exceed $100,000 OR 200 transactions in a year. (Marketplace Facilitators Alert)

Are marketplace facilitators required to collect?
Yes. Platforms like Amazon and Shopify must collect Maryland sales tax on behalf of sellers.

Is custom software still exempt?
No. The exemption for customized or modified software is repealed effective July 1, 2025.

Do I need to file if I had no sales?
Yes. Zero-sales returns are required in Maryland.

What’s the difference between B2B vs B2C SaaS in Maryland?

• B2B SaaS (enterprise use): 3% sales & use tax
• B2C SaaS (consumer use): 6% sales & use tax
  (Technical Bulletin No. 56)

Official Maryland Resources

• Maryland Comptroller – Technical Bulletin No. 56 (Data, IT & Software Publishing Services)
• Business Tax Tip #29 – Digital Products & Digital Codes
• Marketplace Facilitators Alert (Sept 2019)
• MD Tax Connect
• Maryland Comptroller – Sales & Use Tax Overview
• Maryland Comptroller – Penalties and Interest Charges