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Sales tax deduction in Maryland

Varies

Is Sales Tax Deductible in Maryland?

Short answer: Only instead of income tax: itemizers in Maryland pick sales tax (6% state rate, about 6% with local taxes) or state income tax, whichever is bigger. Instead of sales tax, vehicles pay a titling excise tax of 6.5% of the total purchase price (raised from 6% on July 1, 2025).

Use the IRS Sales Tax Deduction Calculator or your receipts, add sales tax paid on a car, boat, or home-building materials, and stay within the $40,400 SALT cap (Schedule A line 5a).

Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.