Maryland Resale Certificate 2026: How to Get Your Exemption Certificate
Maryland offers something rare in the world of state sales tax: simplicity. The state charges a flat 6% sales tax with no local additions. There is one rate, one tax authority, and one registration process. For businesses buying goods for resale, this makes Maryland one of the more straightforward states to navigate.
This guide covers Maryland's resale certificate, the registration process through the Comptroller of Maryland, digital goods taxation, contractor rules, and everything else you need to buy inventory tax-free in 2026.
Maryland Sales Tax Rate in 2026
The Flat 6% Rate
Maryland's sales tax rate is 6% statewide. No county, city, or special district adds an additional sales tax. The rate you see is the rate you pay, everywhere in the state.
There is one notable exception: alcoholic beverages are subject to a 9% sales tax rate instead of the standard 6%.
Why the Flat Rate Matters
In states like Colorado, Louisiana, or Arizona, businesses deal with dozens of different combined rates depending on location. In Maryland, every transaction statewide uses the same 6% rate. This simplifies:
- Rate lookups (there is only one rate)
- Sales tax return calculations
- Compliance across multiple Maryland locations
- Resale certificate usage (one certificate, one rate avoided)
At 6%, a business purchasing $100,000 in inventory annually saves $6,000 with a valid resale certificate. See your exact savings with our savings calculator.
Maryland's Resale Certificate
Maryland uses a Resale Certificate that buyers provide to sellers to document that goods are being purchased for resale and are exempt from sales tax.
The Form
Maryland's Comptroller provides a standard Resale Certificate form. The form number referenced in state guidance is tied to the sales and use tax regulations rather than a standalone form number like other states. Businesses typically use the Comptroller's standard Resale Certificate or draft their own certificate that includes all required information.
Required Information
- Purchaser's business name and address
- Maryland sales and use tax registration number
- Description of property to be purchased for resale
- Purchaser's signature and date
- Statement certifying that the goods are purchased for resale in the ordinary course of business
Key Details
- The resale certificate does not expire as long as your Maryland registration remains active
- Maryland does not accept the Multistate Tax Commission (MTC) Uniform Sales & Use Tax Certificate. You should use the Maryland-specific certificate
- The certificate covers all future qualifying purchases from that supplier once provided (blanket certificate)
- Sellers must keep certificates on file
How to Register for a Maryland Sales Tax Account
Online Registration Through Maryland Business Express
The Comptroller of Maryland manages sales tax registration through the Maryland Business Express portal.
Registration steps:
- Visit Maryland Business Express at egov.maryland.gov/businessexpress
- Create an account or log in
- Select "Register a New Tax Account"
- Complete the Combined Registration Application, which registers you for sales and use tax along with other applicable Maryland tax accounts
- Provide your Federal EIN, business structure, physical location, and expected taxable sales
- Submit the application
Processing time: Online applications are typically processed within 1 to 2 weeks. In some cases, it may take up to 3 weeks during peak filing periods.
Cost: Maryland does not charge a fee for sales and use tax registration.
What You Receive
After registration, you receive:
- A Maryland Sales and Use Tax Registration number
- Authorization to collect sales tax and to issue resale certificates for purchases intended for resale
What You Need to Register
- Federal EIN (or SSN for sole proprietors)
- Maryland business registration with SDAT (State Department of Assessments and Taxation)
- Business entity type and formation details
- Physical business address in Maryland (or registered agent address)
- Description of business activities
- Estimated monthly taxable sales
Need assistance with the registration? We handle the entire process from start to finish.
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What Qualifies for the Resale Exemption?
Qualifying Purchases
- Tangible personal property for resale: Products you intend to sell to your customers
- Raw materials and components: Items that become part of a product you sell
- Packaging materials: Boxes, wrapping, and containers used to package goods for sale
- Items for rental or lease: Goods you will rent or lease to customers
Non-Qualifying Purchases
- Office supplies, furniture, and equipment: Used by your business
- Tools and machinery: Used in operations
- Fixtures and displays: Store shelving, signage
- Vehicles for business use: Company vehicles (unless you are a dealer)
- Consumables: Cleaning supplies, printer ink, and similar items used internally
The rule is simple: If the item will be resold to a customer, it qualifies. If your business will use or consume it, it does not.
Digital Goods and Software in Maryland
Maryland is one of the states that taxes digital products. This is relevant for businesses that sell digital goods and need to understand what falls under the resale exemption.
What Maryland Taxes Digitally
- Digital audio works (music, audiobooks, ringtones)
- Digital audiovisual works (movies, TV shows, streaming content)
- Digital books (e-books)
- Software as a Service (SaaS): Maryland enacted a tax on digital advertising services. The taxation of SaaS and other digital services has been subject to ongoing legal challenges and legislative updates
Resale of Digital Goods
If you purchase digital products for resale (for example, a distributor buying e-books from a publisher to resell), those purchases can qualify for the resale exemption. The same rules apply as with tangible goods: the item must be purchased with the intent to resell it.
For a deeper look at digital product taxation, see our digital products and SaaS sales tax guide.
How Maryland Treats Contractors
Maryland follows the majority rule: contractors who purchase materials and install them into real property are treated as the end consumer of those materials.
The General Rule
- Contractors pay the 6% sales tax on materials at the time of purchase
- Contractors do not separately charge customers sales tax on the installed materials
- A resale certificate cannot be used for materials that will be permanently installed into real property
Exceptions
1. Retail sales without installation If you sell materials at retail without installing them, those purchases qualify for the resale exemption.
2. Repairs to tangible personal property Repairs to items that remain personal property (not attached to real estate) may have different tax treatment. The tax applies to the parts, not the labor, in many repair scenarios.
3. Dual operations Contractors who run both a retail store and a contracting operation must carefully separate purchases. Inventory for the retail side qualifies for the resale exemption; materials for contracting jobs do not.
Practical Example
An electrician in Baltimore:
| Purchase | Use | Tax Treatment |
|---|---|---|
| Wire and conduit for home renovation | Installed into real property | Pay 6% at purchase |
| Light fixture sold to customer (not installed) | Retail sale | Buy tax-free with resale cert |
| Power tools for the crew | Business equipment | Pay 6% (no exemption) |
| Electrical tape for job sites | Consumed on the job | Pay 6% |
For more on contractor rules across all states, read our construction materials sales tax guide.
Maryland's Exemptions Beyond Resale
Maryland has several other notable sales tax exemptions that businesses should be aware of:
Key Exemptions
- Groceries and non-prepared food: Exempt from the 6% sales tax
- Prescription drugs and medical devices: Exempt
- Clothing and footwear priced under $100: Exempt (Maryland does not tax most clothing)
- Manufacturing equipment: Purchased for direct use in manufacturing is exempt
The clothing exemption is particularly relevant for fashion and apparel resellers. Items under $100 are already exempt from sales tax for the end consumer, but the resale exemption still matters for your record keeping and for items priced over $100.
Filing Requirements After Registration
Filing Frequency
The Comptroller assigns filing frequency based on your tax liability:
| Monthly Tax Liability | Filing Frequency |
|---|---|
| Over $250/month | Monthly |
| Under $250/month | Quarterly |
Note: New businesses are sometimes assigned monthly filing for the first year regardless of liability.
How to File
File returns through the Comptroller of Maryland online portal at interactive.marylandtaxes.gov.
Due Dates
Monthly returns are due on the 20th of the month following the reporting period. Quarterly returns are due on the 20th of the month following the end of the quarter.
Common Mistakes to Avoid
Mistake 1: Assuming All States Are This Simple
Maryland's flat 6% rate and single registration make it easy. If you expand to states like Colorado or Louisiana, do not expect the same simplicity. Each state has its own system.
Mistake 2: Using an Out-of-State Certificate
Maryland does not accept the MTC Uniform Certificate or certificates from other states. Use the Maryland-specific resale certificate to avoid having purchases denied.
Mistake 3: Forgetting About Digital Goods
If you sell digital products, remember that Maryland taxes them. Make sure you understand which digital goods are taxable and which purchases qualify for the resale exemption.
Mistake 4: Misunderstanding the Clothing Exemption
Maryland exempts most clothing under $100 from sales tax. This means the end consumer already pays no tax on those items. But you still need proper documentation for your wholesale purchases, especially for items priced above $100.
Mistake 5: Not Filing When You Have No Sales
Even if you had no taxable sales in a period, you must file a "zero return" to keep your registration active. Failing to file can result in penalties and eventual revocation of your registration.
Record Keeping Requirements
Maryland requires businesses to maintain sales tax records for at least 4 years from the date the return was filed or was due, whichever is later.
What to Maintain
- Resale certificates you issued to suppliers
- Resale certificates received from buyers
- Sales tax returns and payment records
- Invoices, purchase orders, and receipts for all transactions
- Registration documentation from the Comptroller
How Much Can You Save?
At Maryland's flat 6% rate, the savings are straightforward:
| Annual Inventory Purchases | Tax Saved |
|---|---|
| $25,000 | $1,500 |
| $50,000 | $3,000 |
| $100,000 | $6,000 |
| $250,000 | $15,000 |
| $500,000 | $30,000 |
Get Your Maryland Resale Certificate
Maryland's single rate and centralized registration make it one of the most accessible states for resale certificate setup. We handle the full registration through the Comptroller of Maryland so you can start purchasing tax-free as quickly as possible.
Get Your Resale Certificate -->
For full details on Maryland's requirements, visit our Maryland state page.
Maryland keeps it simple. One rate, one registration, one authority. Get registered, issue your resale certificates, and start saving 6% on every qualifying inventory purchase.
Related Articles
- What Is a Resale Certificate? - New to resale certificates? Start with the fundamentals.
- Digital Products and SaaS Sales Tax 2026 - Maryland taxes digital goods. Learn which digital products are taxable and how resale exemptions apply.
- How Long Does It Take to Get a Resale Certificate? - See how Maryland's processing time compares to other states.