Why does Maryland charge 3% on some SaaS and 6% on others?

Technical Bulletin No. 56: products bought solely for use in an enterprise computer system are excluded from digital products and stay at 3%. Other purchases take the 6% rate.

This page is for informational purposes only and is not tax, legal, or accounting advice. Consult a qualified tax professional before making compliance decisions. Full disclaimer

Are information services taxable in Maryland?

Depends

Yes, at 3% or 6%. Maryland taxes information services at 3% when bought solely for use in an enterprise computer system, and at 6% otherwise.

Short answer	3% or 6%, by use
Authority	Md. Code, Tax-Gen. §11-104(l)(1); Comptroller of Maryland Technical Bulletin No. 56
Last reviewed	2026-08-22

Why

Maryland taxes data and IT services, including information services, at 3% (Tax-Gen. §11-104(l)(1)). When the same purchase is also a digital product, the higher 6% rate applies instead.

Comptroller of Maryland Technical Bulletin No. 56 explains the dividing line: SaaS and similar products bought solely for use in an enterprise computer system are not digital products, so they stay at 3%. The true axis is how the product is used, not who the buyer is.

Business vs. consumer buyers

AgentTax uses declared business status as a stand-in for enterprise-system use: declared business buyers get 3% and consumers 6%. Callers can state the use directly, and a declared individual or mixed use moves a business purchase to 6%. The stand-in is disclosed on every 3% result.

Where the line is

Maryland has not defined "enterprise computer system" and prescribes no certificate for this use, so keep your own documentation.

How AgentTax classifies information services

Selling access to compiled information: databases, research products, reports and data feeds the seller assembles and furnishes to many customers. AgentTax routes AI research work to its information service category.

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Frequently asked questions

Why does Maryland charge 3% on some SaaS and 6% on others?: Technical Bulletin No. 56: products bought solely for use in an enterprise computer system are excluded from digital products and stay at 3%. Other purchases take the 6% rate.

Sources

Md. Code, Tax-Gen. §11-104(l)(1)
Comptroller of Maryland Technical Bulletin No. 56

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.