Maryland Ranked in Top 15 for Sales Tax Rates

Date: May 18, 2016

Competition with neighboring states is middling.

Maryland Ranked in Top 15 for Sales Tax Rates

In March, the Tax Foundation released their annual report
analyzing state-by-state sales tax rates. Here’s a look at how Maryland stacked
up.

For its combined state and average local sales
tax rate of 6 percent, Maryland ranked as the 13th lowest. Since Maryland has
no separate local sales tax rates, Maryland’s combined average scored well. For
the state sales tax alone, Maryland tied with nine other states for 16th highest.

The Tax Foundation addressed the importance of
competition in setting sales tax rates: “Avoidance of sales tax is most likely
to occur in areas where there is a significant difference between two
jurisdictions’ sales tax rates. Research indicates that consumers can and do
leave high-tax areas to make major purchases in low-tax areas…”

Maryland’s comparison to neighboring states is a
mixed bag. Delaware imposes no sales tax, and Virginia’s combined state and
local rate of 5.63 percent puts it in the top 10 lowest rates nationwide.
Maryland does rank above Pennsylvania (6.34 percent combined state and local)
and West Virginia (6.20 percent combined).

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