Maryland has a sales tax rate of 6%. Businesses in Maryland pay both income and sales taxes on their gross sales. Tax rates vary based on the product or service sold. Businesses should understand Maryland’s complex tax laws and utilize strategies like tax credits and deductions to minimize their tax burden.
The Comptroller’s Office requires anyone selling taxable goods or services in Maryland to obtain a sales tax permit. Nexus is established through maintaining an office, warehouse, or having representatives working in the state. Entering Maryland regularly to provide services or using vehicles to deliver goods also establishes nexus.
Maryland has one of the nation’s lowest GDP growth rates, signaling an economic recovery that concerns businesses. In 2021, Maryland’s GDP was $438 billion, ranking it 15th in the U.S. Over 3 million people work in Maryland, with higher unemployment in rural and urban areas. The government sector accounted for 18% of Maryland’s GDP in 2009.