Use Tax

Every time you purchase taxable tangible goods, whether in person, over the phone, or on the Internet, the purchase is subject to Maryland's 6 percent sales and use tax if you use the merchandise in Maryland. State sales taxes apply to purchases made in Maryland while the use tax refers to the tax on goods purchased out of state. If you make a tax-free purchase out of state and need to pay Maryland's 6 percent use tax, file the Consumer Use Tax Return for Out-of-State Purchases, with your payment, by the appropriate due date.

The use tax form and the required payment should be mailed to:

Compliance Division
301 West Preston Street, Room 203
Baltimore, Maryland 21201-2383

When you purchase goods from businesses located outside of Maryland, they are not required to collect Maryland's sales tax unless they have a physical location, or deliver services, in Maryland. Also, you are not required to pay the sales tax in the state where the business is located. However, you are required to pay the 6 percent use tax directly to the Comptroller of Maryland by filing the consumer use tax return by the appropriate due date.

If you do not pay Maryland's use tax on purchases made out of state, you could be liable for penalties and interest in addition to the tax due.

Every state that has a sales tax also has a use tax. Maryland's use tax protects Maryland businesses from unfair competition. Local businesses would be at a competitive disadvantage if consumers were entitled to a 6 percent discount on items purchased from out of state businesses.