Maryland’s New Sales Tax on Tech - What SaaS, Cloud, and IT Providers and Customers need to Know

Maryland has implemented a first of its kind 3% tech tax targeting a broad range of IT and digital services. Effective July 1, 2025, this surcharge represents an expansion of the state’s sales and use tax system into the digital economy. Unlike the longstanding 6% sales tax on tangible goods and digital products, the new law covers previously untaxed services, such as software as a service (SaaS), cloud storage, and IT consulting - reshaping the cost structure for tech providers and buyers alike.