Maryland: The Old Line State

Maryland is one of the mid-Atlantic states. Accordingly, it is located on the Atlantic coast in the northeastern United States. More than six million people live on an area of ​​32,000 km². This makes the Old Line State one of the most densely populated US states. According to ehuacom, its capital is Annapolis, but the largest and most famous is Baltimore.

Maryland opens its doors to those who long for success that comes from honest work and the right environment. Resident companies are in an excellent position to thrive. The Baltimore-Washington region is the nation’s fourth largest market.

Maryland Location Map

PROFITEER FROM NEIGHBOR WASHINGTON DC

With Washington DC as a neighbor, Maryland businesses have an advantage in federal funding and research. Maryland ranks first among states in terms of R&D facilities. The state is home to more than 60 federal agencies and twice as many federal laboratories, 74, as any other state.

Maryland also benefits from federal government contracts and good-paying jobs. Maryland business people have direct access to key government decision makers, foreign embassies and international business leaders.

THE HEART OF THE EAST COAST

Not only the immediate proximity to Washington DC is a big advantage for Maryland, but also the access to the Atlantic Ocean. The East Coast is the country’s most important trade corridor and one of the most dynamic in the world. The Old Line State forms the heart of this region. Businesses based in Maryland reach one-third of the US population overnight.

In accordance with its location, the state has a very well developed infrastructure. The Port of Baltimore is the nation’s premier roll-on, roll-off port. It is served by two Class I rail freight lines and offers immediate access to I-95 and I-70, the major arteries north, south and west.

Access by air is just as easy. In addition to Maryland’s own BWI Thurgood Marshall Airport, three other major airports in the neighboring states of Philadelphia, Northern Virginia and Washington, DC are a short drive away.

TOP-CLASS TALENT POOL

Businesses across the state rely on Maryland’s excellent schools to create an excellent workforce. 40 percent of Old Line State residents have a bachelor’s degree or higher, ranking fourth in the nation. Nearly 20 percent of Maryland residents have college or professional degrees, ranking Maryland second in the nation.

The state’s K-12 public school system is consistently better than that of other states. Maryland’s 57 accredited two- and four-year colleges and universities include world-leading academic institutions such as Johns Hopkins University or the University of Maryland.

In addition, Maryland’s 16 community colleges offer continuing education courses and certifications, as well as tailored training for the workforce. Businesses in Maryland benefit from strategic partnerships between businesses and universities. This gives you access to resources to accelerate innovation in key industries.

MARYLAND INCOME TAX

Maryland charges an income tax of 2-5.75% depending on income. In addition, federal income taxes are payable.

MARYLAND CORPORATE INCOME TAX

Maryland charges a corporate income tax rate of 8.25%. In addition, federal corporation tax is payable.

MARYLAND SALES TAX

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales tax rate in Maryland

The sales tax in Maryland is 6% at the state level. Municipalities or counties do not levy a sales tax.

Maryland Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

October 1, 2018

Transactions included:

Gross receipts from sales of tangible personal property or taxable services supplied to the US state

Treatment of tax-exempt transactions:

Exempt sales are included; exempt services, on the other hand, are not included in the threshold value

Reason:

turnover or transaction volume

Sales/Transactions Threshold:

$100,000 or 200 transactions

Evaluation period:

The threshold applies to sales in the current or previous calendar year

Extra information:

  • Registration Requirements: Maryland did not specify how quickly a remote business must register once it crosses the Economic Nexus Threshold.
  • Out-of-State Vendor Regulation
  • HB1301

Maryland Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Effective date by the marketplace broker:

October 1, 2019

Economic Nexus Threshold:

Greater than $100,000 in gross sales or at least 200 separate sales of tangible personal property or taxable services in Maryland in the current or prior calendar year. When calculating the threshold:

  • Remote sellers should include all sales, direct and facilitated
  • Marketplace agents should also include all US state sales

Registration requirements:

  • Remote Multichannel Sellers: You must register with the Comptroller of Maryland and collect your Maryland sales tax on sales not taxed by a Marketplace Agent once you have crossed the Economic Nexus Threshold.
  • Remote Marketplace Sellers: You do not need to register with the Comptroller of Maryland if you only sell through one or two collectible marketplaces. To do this, contact the comptroller for more information.
  • In-State Multichannel Sellers: You must register with the Comptroller and collect tax on sales that are not taxed by a marketplace intermediary.
  • In-State Marketplace Vendors: You may need to register; To do this, contact the comptroller for more information.
  • Find out more in Tax Alert 09-19and here.