MD Sales Tax 101 Shipping States

Is Shipping Taxable in Maryland?

by Mark Faggiano

Maryland Shipping Taxability

Having trouble with sales tax? It seems like there always are issues popping up, chiefly due to the the fact that states establish their own laws about when it is applied. One issue in particular is whether or not to charge sales tax on shipping and handling. Let’s see how that’s handled for the good people of Maryland, from Baltimore to Annapolis.

Is shipping taxable in Maryland?

Maryland Shipping

Gotta love a short and sweet answer! Thanks, Maryland. It appears that sellers will not have to pay sales tax on shipping, as long as the shipping charge is separately stated on the invoice. The shipping charge must also be separated from any handling fee. If it’s combined with a handling or processing fee, then the shipping charge is taxable.

In Summary:

You are not required to charge sales tax on shipping charges to customers in Maryland as long as you separate out any “handling” charges on the invoice you send to your customer. (Handling charges are taxable.)

Still need some answers? Write a question in the comments!

  • luc

    i have a question: if im from Europe and im selling via online store to US customers with shipping via warehouse in Oregon then i have to collect sales tax only for shippings to Oregon OR for example when i ship to customer from Texas then i have to use their sales tax rate because customer is located there ?

  • Hi Luc,

    This all depends on where you have “sales tax nexus.” If your business has no sales tax nexus in a state, then you do not have to charge sales tax to customers in that state. I recommend you check out our Sales Tax 101 Guide for more about how to determine whether you have nexus and who you have to charge sales tax: http://offers.taxjar.com/sales-tax-101-whitepaper

  • If we are selling on Amazon and using FBA, should we charge tax for this state?

    • Hi Devin,

      As far as we can tell, the Amazon Fulfillment Center in Maryland isn’t open yet. (Confusingly, the Amazon Sortation Center in Maryland IS open, but Sortation Centers don’t create sales tax nexus.) We’ll update here when we have word that the Maryland Amazon FC has opened.

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