Maryland Statewide Rule
Maryland Short-Term Rental Sales and Use Tax
Key Facts
- State Sales Tax Rate
- 6%
- Threshold
- Under 90 days
- Collection Authority
- Comptroller of Maryland
- Platform Collection
- Required for facilitators
- Local Add-On
- County hotel taxes apply
Summary
Maryland imposes a statewide 6% sales and use tax on short-term rental accommodations under 90 days. Hosts and platforms must collect and remit this tax to the Comptroller, regardless of local rental fees or registration requirements.
(2) for a taxable price of $1 or more: (i) 6 cents for each exact dollar; and (ii) for that part of a dollar in excess of an exact dollar: 1. 1 cent if the excess over an exact dollar is at least 1 cent but less than 17 cents; 2. 2 cents if the excess over an exact dollar is at least 17 cents but less than 34 cents; 3. 3 cents if the excess over an exact dollar is at least 34 cents but less than 51 cents; 4. 4 cents if the excess over an exact dollar is at least 51 cents but less than 67 cents; 5. 5 cents if the excess over an exact dollar is at least 67 cents but less than 84 cents; and 6. 6 cents if the excess over an exact dollar is at least 84 cents.
Full Breakdown
Under Maryland Tax-General Article Section 11-101, transient charges for sleeping accommodations rented for fewer than 90 consecutive days are subject to the 6% state sales and use tax. Accommodations intermediaries such as Airbnb and Vrbo are required to collect and remit tax on behalf of hosts when they facilitate the booking. Hosts who book directly must register with the Comptroller of Maryland and file periodic returns. Counties and Baltimore City may impose additional local hotel rental taxes on top of the state rate. The state tax applies uniformly across all jurisdictions and cannot be waived by local ordinance.
Violations & Penalties
Failure to collect or remit sales tax may result in penalties up to 10% of unpaid tax, interest, and potential criminal charges for willful evasion.
Frequently Asked Questions
Does Airbnb collect Maryland sales tax automatically?
Do I owe local hotel taxes in addition to state tax?
Sources
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