Filing your Maryland sales tax return is simple with the state’s online system. You can file and pay directly through the Maryland Tax Connect portal, as long as your business is registered to collect and remit sales tax.
This guide walks you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with Maryland’s sales tax rules.
What You Need Before Filing
Maryland Sales and Use Tax License / Central Registration Number (CRN) – This eight-digit number is issued when your business registers with the Comptroller of Maryland and is required for filing your return.
- Maryland Tax Connect Log-in Credentials – The state requires businesses to file electronically through Maryland Tax Connect. Make sure you have your username and password ready. (Note: You may also file certain returns as a Guest, but creating an account is recommended for managing your tax records.)
- Federal Employer Identification Number (FEIN) and Central Registration Number (CRN) – Your CRN is the primary state tax ID used for filing. You will need your FEIN when initially registering your business.
- Total Sales – Report your gross sales for the filing period, including both taxable and nontaxable sales.
- Taxable Sales – This is the figure for your taxable sales, which is calculated by subtracting any non-taxable or exempt sales from your gross sales.
- Taxable Purchases – If you made purchases where Maryland use tax wasn’t paid but should have been, you’ll need to report them.
- Bank Account and Routing Number – To make payments online, you’ll need your banking information.
- Filing Frequency Schedule – The Comptroller assigns your business a filing frequency (monthly, quarterly, or annually) based on sales volume. Check your sales tax license or Maryland Tax Connect account to confirm your schedule.
Step-by-Step: How to File Maryland Sales Tax Online
The online filing process is a logical progression of data entry and verification. While the exact screen layouts may evolve with the new eServices platform, the core workflow remains constant.
Step 1. Go to the Maryland Tax Connect website.
Step 2. Log in using your username and password. If you’re a new user, create an account to access your sales tax filing dashboard.
Step 3. Review your account dashboard to make sure your Sales and Use Tax account is active and has no outstanding balance.
Step 4. From the top menu, hover over “Service Requests” and click “File a Form.”
Step 5. On the form selection page, choose the following:
- Form Type: Sales and Use Tax Return Form 202
- Return Type: Original Return (or Amended if you’re correcting a prior filing)
- Filing Method: Data Entry
- Period End Date: Select the tax period you’re reporting.
Click Next to continue.
Step 6. Check your seller status at the top of the form (e.g., Marketplace Facilitator or Out-of-State Vendor), then start entering your data.
Step 7. Enter your gross sales, taxable sales, and tax due based on your business records or ecommerce platform report (like Shopify). Click Calculate to verify totals.
Step 8. Enter any eligible discounts or credits, such as the Timely Filing Discount, which applies if you file and pay by the due date.
Step 9. Click Save and Continue, then review the Summary Information page. Confirm that your total tax, credits, and amount due are correct.
Step 10. Click Next, then Yes to sign and authorize your return submission.
Step 11. Once submitted, you’ll see a confirmation message with a confirmation number. Save or print this for your records.
Step 12. To pay, click “Make a Payment Now.”
- Enter your payment amount (or check “Total Outstanding Balance”).
- Select ACH Direct Debit as your payment method.
- Use an existing saved bank account or add a new one with your routing and account numbers.
- Choose your payment date, agree to the authorization, and click Submit.
Step 13. A
Payment Confirmation screen will appear, showing your payment details and confirmation number. Print or save this page for your records.
Step 14. Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common option.
[Client Name] – Maryland – Sales Tax Return Confirmation – [Filing Period]
Helpful tip: If you lose connection or need to stop midway, click “Save and Exit” to save your progress. You can resume later from Saved and Submitted Items in your dashboard.
Due Dates
Maryland requires sales and use tax returns to be filed and paid by the 20th of the month following the end of the reporting period. If the 20th falls on a Saturday, Sunday, or holiday, the due date shifts to the next business day.
All registered businesses must file a return, even if no taxable sales were made during the period. If you have zero sales to report, Maryland allows you to file a zero return using the Maryland Tax Connect portal or the Telefile system by calling (410) 260-7225.
Here is the full schedule of Maryland sales tax due dates:
| FREQUENCY |
REQUIREMENT |
REPORTING PERIOD |
DUE DATE |
| Monthly |
For higher-volume businesses as assigned by the Comptroller |
Covers the prior month |
20th of the following month |
| Quarterly |
For mid-sized businesses |
- Q1: Jan–Mar
- Q2: Apr–Jun
- Q3: Jul–Sep
- Q4: Oct–Dec
|
Apr 20, Jul 20, Oct 20, Jan 20 |
| Annual |
For very small sellers with low tax liability |
Calendar year |
January 20 |
Timely Filing Discount
Maryland rewards businesses that file and pay their sales tax on time with a timely filing discount. This allows you to keep a small portion of the tax you’ve collected as compensation for filing and remitting on time.
- The discount is 1.2% of the first $6,000 of sales tax collected.
- For amounts over $6,000, the discount is 0.9%, plus an additional $18 from the first $6,000 calculation.
- The maximum discount you can claim is $500 per return.
- For vendors filing consolidated returns, the $500 maximum applies across all combined filings.
To claim the discount, calculate it directly on your sales and use tax return (Form 202). Enter the discount amount on Line 8.
Filing Amended Returns
If you discover an error after filing your Maryland sales and use tax return, you can correct it by filing an amended return. Do not use Form 502X, which is for amending individual income tax returns.
When to file: A claim for a refund of sales and use tax must generally be filed within 4 years from the date the tax was paid.
How to file: Most amended returns for Sales and Use Tax are processed electronically through the Maryland Tax Connect portal. To file an amended sales tax return, you must log in to the Maryland Tax Connect system and select the option to amend the specific period’s Sales and Use Tax Return (Form 202).
Paper filing is still permitted in certain limited circumstances, but electronic filing is the preferred method for making corrections.
Filing Zero Returns in Maryland
Maryland requires a return for every assigned filing period, even if you had no taxable sales and owe no tax. In that case, file a zero return to keep your account in good standing and avoid unnecessary notices or penalties.
Other Filing Methods in Maryland
If you’re having difficulties filing your Maryland sales tax return online, you can try other options.
- File with TaxHero – Let expert accountants in TaxHero prepare your sales tax returns for you. We’ll take everything off your hands so that you can spend your time more efficiently managing your business.
- Maryland Tax Connect (primary method) – Maryland has moved sales & use filings to Maryland Tax Connect. The state prefers and currently uses this system for filing and paying.
- Independent software provider or professional preparer – You can use approved third-party software or work with a tax professional who files through Maryland’s electronic channels. br_spacer]
Let TaxHero Manage Your Maryland Sales Tax Returns
TaxHero doesn’t just handle your Maryland sales tax return, we manage filings across every state where your business has nexus, ensuring each return is filed accurately and on time at the frequency required.
This means you stay compliant nationwide without having to track multiple rules and deadlines yourself.
Don’t wait until the next deadline, schedule your demo today!
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