Maryland sales tax debt: what the Comptroller can do and your options
Last updated · Reviewed for accuracy against IRS.gov guidance
Maryland's sales and use tax is administered by the Comptroller of Maryland, with no local sales tax. The general rate is 6%, with higher rates on alcohol and certain items. The Comptroller can file liens, levy accounts and block license renewals for unpaid tax. Payment plans are available, and appeals go to the Comptroller's hearing office and then Maryland Tax Court.
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Who collects Maryland sales tax
The Comptroller of Maryland administers sales and use tax. The general rate is 6%, with higher rates for alcoholic beverages and certain other items. Maryland has no local sales tax, so a Maryland balance is one state account.
Collection and license holds
The Comptroller can file liens, levy bank accounts and — notably for businesses — block renewal of state business and professional licenses for unpaid taxes. The Comptroller offers payment plans; staying current on new returns is typically required.
Personal liability
Many states let the revenue agency assess owners and officers personally for sales tax a business collected but didn't remit. We haven't confirmed Maryland's specific rule on an official the Comptroller page, so we won't describe it here. If you were an owner, officer or bookkeeper with authority to pay bills, ask the Comptroller directly whether a responsible-person assessment applies — and read the federal Trust Fund Recovery Penalty guide if payroll taxes are also behind.
Disputes and next steps
Maryland assessments can be contested by requesting a hearing with the Comptroller's Hearings and Appeals section within the deadline on the notice, with further appeal to the independent Maryland Tax Court.
Before calling, file any missing returns, keep the current period paid, and run the free business tax relief assessment to see which routes may be worth raising.
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Start the calculatorFrequently asked questions
Does Maryland tax digital products?
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Yes. Since March 2021 Maryland applies sales tax to digital products and certain digital codes, which created balances for software and streaming sellers that hadn't collected.
What is Maryland's sales tax rate?
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6% generally, with higher rates on alcoholic beverages and certain items. There is no local sales tax.
Can Maryland block my license for unpaid tax?
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Yes. The Comptroller can block renewal of state business and professional licenses for unpaid taxes.
Where do I appeal a Maryland sales tax assessment?
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Request a hearing with the Comptroller's Hearings and Appeals section, then appeal to the Maryland Tax Court.
Does closing the business end Maryland sales tax debt?
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No. Closing stops new liability, but assessed tax, penalties and interest remain, and states often pursue the people responsible for collected-but-unremitted tax.
Where do I start if I'm behind on Maryland sales tax?
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File every missing return so the Comptroller can replace any estimated bill with real figures, pay the current period, then contact the Comptroller about the older balance.
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Sources
IRS figures on this page (rates, fees, thresholds) verified as of 2026-11-04. See our editorial policy.
TaxSettlementCalculator.com is not a tax firm, law firm, CPA, or government agency and is not affiliated with the IRS or any state tax agency. Estimates are for educational purposes only and are not tax, legal, or financial advice. Results vary based on individual circumstances, and no outcome is guaranteed. We connect users with independent tax relief professionals.