The Maryland sales and use tax is imposed upon the sale or use of tangible personal property and certain services at the rate of 6 percent, unless a specific exemption is provided. There are no general sales or use taxes levied by Maryland's counties or municipalities. Major business-oriented exemptions from the tax include sales of the following:
Capital and noncapitalized manufacturing machinery and equipment
Safety and quality control equipment used on a production activity site; and equipment used to move a finished product on the production site
Tangible personal property consumed directly in manufacturing or testing of finished products
Fuels used in manufacturing, except those used to cool, heat and light the manufacturing facility
Items for resale and tangible personal property to be incorporated in other tangible personal property manufactured for resale
Computer programs reproduced for sale or incorporated in whole or in part into another computer program intended for sale
Customized computer software
Equipment and materials used or consumed in research and development, including testing of finished products
Aircraft, vessels, railroad rolling stock, and motor vehicles used principally in the movement of passengers or freight in interstate and foreign commerce
Certain end-item testing equipment used to perform a contract for the U.S. Department of Defense and transferred to the federal government
Items and services purchased or rented for film and video productions made in Maryland for commercial distribution; includes short-term rental of vehicles used in film production activities
