Is digital advertising taxable in Maryland?
Maryland imposes a digital advertising gross receipts tax, but its validity is contested. On 2026-08-14 the Maryland Tax Court held it invalid and ordered refunds; the State has sought review.
| Short answer | Taxed, but held invalid (on appeal) |
|---|---|
| Authority | HB 732 |
| Last reviewed | 2026-09-18 |
Why
Maryland's digital advertising tax (HB 732) is a gross receipts tax, separate from sales tax, at rates from 2.5% to 10% tiered by global annual gross revenues. It applies only above $100M in global revenue.
The tax has never been sustained on the merits. In Comptroller v. Comcast of California (2023) the Supreme Court of Maryland vacated earlier orders without reaching the merits. On 2026-08-14 the Maryland Tax Court held the tax invalid under the Internet Tax Freedom Act and the Constitution in three companion cases, and the State petitioned for review.
Business vs. consumer buyers
The tax is on the seller of advertising services, measured by its gross receipts. Buyer type does not change it.
Where the line is
- Most businesses fall below the $100M global revenue threshold.
- AgentTax does not calculate this tax.
How AgentTax classifies digital advertising
Selling digital or targeted advertising: ad space, ad targeting and delivery on digital interfaces. AgentTax does not calculate digital advertising taxes. They are separate gross receipts or excise taxes, not sales tax.
Run a Maryland sale through the AgentTax engine and get the amount, the rate it used and the statute behind it. No signup needed.
Open the calculatorFrequently asked questions
- Is the Maryland digital advertising tax still in effect?
- Its validity is contested. The Maryland Tax Court held it invalid on 2026-08-14, and the State has petitioned for review.
Related
- All Maryland digital tax answers
- Is SaaS taxable in Maryland? (full guide)
- Is data processing taxable in Maryland?
- Are information services taxable in Maryland?
- Are digital goods taxable in Maryland?
- Digital advertising: every state we cover
- Is digital advertising taxable in Illinois?
- Is digital advertising taxable in Utah?
Further reading on the AgentTax blog
Sources
This page is for informational purposes only and is not tax, legal, or accounting advice. It reflects AgentTax's current interpretation of evolving law, which can change. Consult a qualified tax professional before making compliance decisions. Positions on this page come from the AgentTax tax policy registry (v1.24.0); see our methodology.