Maryland Contractor Sales Tax 2026

Maryland sales tax rate for contractors

• Combined rate: 6% (no local addition)
• Construction labor taxable: NO - real property labor is exempt
• Tax authority: Maryland Comptroller

How Maryland treats contractor labor

Real property labor exempt. TPP repair labor (appliances, HVAC service on tangible items) taxable.

Maryland-specific rules

Maryland requires court action to perfect lien - petition for lien within 180 days. MHIC required for home improvement work.

Maryland mechanics lien rights

Beyond sales tax, Maryland contractor billing must respect the mechanics lien deadline of 180 days from last work. Preliminary notice: Notice of intent within 120 days of last work for subcontractors.

Maryland contractor licensing

Maryland Home Improvement Commission (MHIC) - required for licensed work. $370 + $50K trust fund contribution. Board: https://www.dllr.state.md.us/license/mhic.

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Maryland contractor resources by trade

• Maryland HVAC Cost
• Maryland Plumbing Cost
• Maryland Electrical Cost
• Maryland Roofing Cost
• Maryland Painting Cost
• Maryland Concrete Cost