Maryland sales tax codes and rates
Maryland's state sales tax rate is 6%; county and city rates come on top and are not included. A Nefin company that sells into Maryland gets 3 sales codes, each named after the line of the Form 202 it fills, so the return's figures add up as you invoice. Purchases you owe use tax on go under MD-21a, and Nefin works out the use tax due.
Maryland codes from the Form 202
Each code is “MD-” plus the line it fills on the Form 202. Rates are the state rate only; add local rates in Settings, VAT rates, where you collect them.
| Code | What it covers | Rate |
|---|---|---|
| MD-4a | MD sales subject to 6% (Form 202 Line 4a) | 6% |
| MD-16 | MD data/IT/software services 3% (Form 202 Line 16) | 3% |
| MD-3-NT | MD nontaxable sales: resale, exempt (Form 202 Line 3 only) | 0% |
| Code | What it covers | Rate |
|---|---|---|
| MD-21a | MD purchases subject to use tax 6% (Form 202 Box 21a) | 0% |
Maryland in the tax books
Nefin’s sales tax book has one row per invoice and one column per Form 202 line; these are the Maryland columns and the totals worked out from them.
Sales Tax Book
Maryland - Form 202
- [MD-4a]Sales subject to 6% rate (Line 4a)
- [MD-16]Data, IT and software services 3% (Line 16)
- [MD-3-NT]Nontaxable sales, in Line 3 only
Totals Nefin calculates
- [MD-3] Gross sales (Line 3)Sum of the net amounts in [MD-4a] + [MD-16] + [MD-3-NT]
- [MD-4] Tax 6% (Line 4)Net amount × 6%, from [MD-4a]
- [MD-16-TAX] Tax 3% on data/IT services (Line 16)Net amount × 3%, from [MD-16]
Use Tax Book
Maryland - Form 202
- [MD-21a]Purchases subject to 6% rate (Box 21a)
Totals Nefin calculates
- [MD-21] Use tax 6% (Box 21)Net amount × 6%, from [MD-21a]
Frequently asked questions
What is the Maryland sales tax rate?
The state rate is 6%. Counties, cities and districts may add local rates, which vary by address and are not part of these codes.
Which Maryland sales tax codes does Nefin set up?
3 sales codes from the Form 202, for example MD-4a (MD sales subject to 6% (Form 202 Line 4a)), MD-16 (MD data/IT/software services 3% (Form 202 Line 16)), MD-3-NT (MD nontaxable sales: resale, exempt (Form 202 Line 3 only)).
How does Nefin handle Maryland use tax?
Book a purchase on which the vendor charged no Maryland tax under MD-21a (MD purchases subject to use tax 6% (Form 202 Box 21a)). The bill stays at the price you paid, and the use tax book works out the tax you owe at 6%.
Are these Maryland codes official?
They are a starting point. Each code follows a line of the Form 202, but check them against your return before you file, and edit them in Settings, VAT rates.