Maryland Sales and Use Tax License: How to Register With the Comptroller

If you sell taxable goods in Maryland, you need a sales and use tax license from the Comptroller of Maryland before you start collecting tax. The license is free. You get it through the Combined Registration Application on Maryland Business Express, and the number it produces is the one county circuit court clerks ask for when they issue a trader's license. This guide covers how to register, who has to register, the current rates, the rules for out-of-state sellers, and what to do after you have your number.

This article is informational content, not legal or tax advice. Your obligations depend on what you sell, where you sell it, and how your business is organized. For anything beyond a simple in-state retail setup, talk with a qualified CPA or attorney before you register.

Sales and Use Tax License, Sales Tax Permit, or Sales Tax ID: What the Terms Mean

The Comptroller calls the registration a Sales and Use Tax License. You will also see people refer to it as a Maryland sales tax permit, a sales tax ID, or a sales tax number. These are informal names for the same thing: the registration that lets you collect and remit Maryland sales and use tax under your business's account.

Keep two registrations straight. The Comptroller issues the sales and use tax license. The county circuit court clerk issues the trader's license, which is a separate local requirement for most businesses that sell goods. The clerk's step depends on the Comptroller step, so the Comptroller comes first.

Who Needs to Register

If you make retail sales of taxable goods in Maryland, you need to register before your first sale. Whether a specific product or service is taxable is a question for the Comptroller's guidance and, for anything unusual, a tax professional.

Out-of-state sellers can also be required to register. Under COMAR 03.06.01.33, a remote seller with no physical presence in Maryland has an economic nexus obligation if, in the previous or current calendar year, it had either:

• Gross revenue over $100,000 from sales delivered in Maryland, or
• 200 or more separate transactions into Maryland.

Because the test looks at both the previous and the current calendar year, check both years, not just the one you are in. A seller that crosses either line should talk with the Comptroller and a tax advisor about its registration duty rather than waiting for a notice.

What the Registration Costs

The Combined Registration Application and the Sales and Use Tax License are free. Your real costs come from the tax itself, which you collect from customers and remit to the Comptroller, and from the other costs of running the business, such as accounting help. Trader's license fees are set locally, so confirm the amount with the clerk in your county. This guide does not list that figure.

Before You Start: Gather Your Information

Have these items ready before you open the application so you do not have to stop halfway through:

• Your legal business name and entity type. If you formed an LLC or corporation, the name must match your record with the State Department of Assessments and Taxation (SDAT). You can search the entity record at https://egov.maryland.gov/businessexpress/entitysearch.
• Your federal Employer Identification Number (EIN), if you have one. If you do not, expect the application to ask for another federal identifier, and have it on hand.
• Your business address and any other address where you sell or keep inventory.
• The names and addresses of owners, members, partners, or officers.
• The date you expect to make your first taxable sale, and a short description of what you sell.

Name and status mismatches are the most common reason a registration stalls. If your LLC or corporation has not filed its SDAT annual report, fix that first. Details are in the trader's license section below.

How to Register Step by Step

1. Open Maryland Business Express. The state's online filing portal is at https://egov.maryland.gov/businessexpress. The sales tax registration is reached from the taxes and insurance section at https://businessexpress.maryland.gov/start/taxes-and-insurance.
2. Start the Combined Registration Application. This is the single application that registers your business with the Comptroller and produces your Sales and Use Tax License. Read each screen before you move on, since the tax types you select determine what the Comptroller sets up for your account.
3. Enter business and owner information. Enter the details from your checklist. Check the entity name, EIN, and addresses against your records before you submit.
4. Select sales and use tax. Add other tax types only if your business needs them, and confirm which ones apply with the Comptroller or a CPA. Registering for taxes you do not owe creates filing obligations you will have to manage.
5. Submit and save the confirmation. Save the confirmation page and any account details shown. Record the account number exactly as it is displayed.
6. Confirm your account number with the Comptroller. The exact format of the account number is not confirmed in this guide, so do not assume a length, prefix, or pattern. Check the number on your license with the Comptroller at https://www.marylandcomptroller.gov/ before you give it to anyone else, including a county clerk.

Processing time for the license is not stated in this guide. Ask the Comptroller when you apply, and do not schedule a first sale or a trader's license visit until you have the number in hand.

Filing Frequency

The Comptroller assigns your filing frequency based on your tax liability. Do not plan around a schedule you have guessed at. After registration, confirm your assigned filing frequency and due dates in your Comptroller account, and set calendar reminders for each return and payment.

Maryland Sales and Use Tax Rates

Maryland's general sales and use tax rate is 6%, under Tax-General Section 11-104. Some goods carry different rates:

Category	Rate	Notes
General sales and use	6%	Tax-General Section 11-104
Alcoholic beverages	9%	Confirm application details with the Comptroller
Adult-use cannabis	12%	Effective July 1, 2025, under Chapter 604 of 2025

House Bill 133 of 2026 would have cut the general rate to 3%. It was not enacted, so the 6% general rate applies. Bills can change in later sessions, so check the Comptroller's current guidance before you rely on any proposed rate.

Buying goods to resell is handled through a resale certificate, which is covered in its own guide. Do not treat a resale purchase as tax-free without that paperwork in place.

The Trader's License: Your Next Step

Maryland has no single general state business license. Most businesses that sell goods need a trader's license from the Clerk of the Circuit Court in the county where they operate. Several points matter here:

• The license year runs May 1 through April 30.
• Growers and manufacturers are exempt from the trader's license.
• The clerk asks for your sales and use tax number. Some clerks say so directly. Howard County's clerk, for example, directs applicants to register with the Comptroller's Central Registration first.
• The clerk cannot issue a trader's license if you owe personal property tax or have missing SDAT filings.

For LLCs and corporations, the SDAT filing that most often causes trouble is the Annual Report and Business Personal Property Return (Form 1). The annual report fee is $300 and it is due April 15 each year. Extension requests are filed at https://pprextensions.dat.maryland.gov. A missed report can block your trader's license even when your sales tax registration is complete.

Confirm the trader's license fee and the documents your county clerk needs before you visit or apply, since requirements can vary by county.

Common Mistakes to Avoid

• Selling before you register. Taxable sales made before you have a license can leave you with tax you should have collected and no clean record of it.
• Registering under the wrong name. A name that does not match your SDAT record causes delays with both the Comptroller and the clerk.
• Assuming the number format. Confirm the account number with the Comptroller rather than copying a format you saw somewhere else.
• Skipping the clerk step. A sales and use tax number alone does not let you trade in a county. Most sellers still need the trader's license.
• Letting SDAT filings lapse. A missing annual report can stop your trader's license even if everything else is in order.

Checklist: What to Do Next

1. Confirm whether your sales are taxable and whether any remote-seller threshold applies to you.
2. Confirm that your entity name and status match your SDAT record.
3. Register through the Combined Registration Application on Maryland Business Express.
4. Confirm the account number with the Comptroller.
5. Confirm your assigned filing frequency and due dates.
6. Apply for your trader's license with the Clerk of the Circuit Court in your county, and confirm the fee there.
7. Set up a process to collect tax at the correct rate on each taxable sale.

Frequently Asked Questions

Is the Maryland sales and use tax license free?

Yes. The Sales and Use Tax License is free and is obtained through the Combined Registration Application. Other costs, including your trader's license fee and any accounting help, are separate.

Do I need a Maryland sales tax license if I only sell online?

Not necessarily, but it depends on where your buyers are and what you sell. Out-of-state sellers can have an economic nexus obligation under COMAR 03.06.01.33 if they exceed the gross revenue or transaction thresholds in the previous or current calendar year. Check your numbers for both years.

How long does registration take?

The processing time is not stated in this guide. Ask the Comptroller when you apply, and plan your first sale around the number you receive.

Get Help With Complex Situations

Simple in-state retail usually needs only the steps above. If you sell across state lines, operate through a marketplace, carry an existing tax balance, or have questions about which products are taxable, consult a qualified CPA or attorney. For a free starting point, the Maryland Small Business Development Center Network at https://www.marylandsbdc.org/ offers advising for small businesses.

Reminder: this guide is informational, not legal or tax advice. Rules, rates, and fees can change, so confirm current details with the Comptroller of Maryland at https://www.marylandcomptroller.gov/ and with your county clerk before you act.