Rates last verified: September 4th, 2026
Sources: Maryland General Assembly statutes; Comptroller of Maryland; Maryland 9-1-1 Board; Maryland Department of Disabilities; Montgomery County Department of Finance; Baltimore City Code. Full citations at the bottom of this page.
Maryland's sales and use tax reaches services only when a statute names them, and the taxable-services list in Tax-General section 11-101(m) names several telecom services: cellular or other mobile telecommunications service, "900"-type services, custom calling service sold with basic telephone service, telephone answering services, pay-per-view television, and prepaid telephone calling arrangements. The rate on those services is 6%. The fee layer runs deep: a state 911 fee, county 911 fees that vary by county, a 988 fee, a Universal Service Trust Fund surcharge, and line taxes in Montgomery County and Baltimore City.
Quick Facts
| Item | Maryland Treatment |
|---|---|
| State sales and use tax | 6% on listed telecom services: cellular or other mobile telecommunications service, "900"-type service, custom calling service, telephone answering service, pay-per-view television, and prepaid telephone calling arrangements (Tax-General § 11-101(m), § 11-104) |
| 3% data and technology tax | 3% on data, information technology, and software publishing services under North American Industry Classification System (NAICS) sectors 518, 519, 5415, and 5132, effective July 1, 2025; telecommunications (NAICS sector 517) is not among the sectors the 3% rate reaches, and when a sale could take either rate the higher rate applies (Tax-General § 11-104(l); Comptroller's Technical Bulletin 56) |
| State 911 fee | $0.50 per month for each switched local exchange access service, commercial mobile radio service (CMRS), or other 9-1-1-accessible service (Public Safety § 1-310) |
| County 911 fee | Set by each county; the 9-1-1 Board's schedule effective July 1, 2026 lists fees from $0.75 to $4.25 per month, for combined 911 fees of $1.25 to $4.75 (Public Safety § 1-311; Maryland 9-1-1 Board FY27 fee table) |
| Prepaid wireless E 9-1-1 fee | 60 cents per retail transaction, collected by the seller, which keeps 3%; the fee itself is not subject to sales and use tax (Public Safety § 1-313) |
| 988 fee | 25 cents per month per subscriber for 9-8-8-accessible service; a 25-cent prepaid wireless 988 fee starts July 1, 2027 (Health-General § 7.5-5A-03.1, § 7.5-5A-03.2) |
| Universal Service Trust Fund | Statutory cap of 18 cents per month per account; set at $0.09 per month effective July 1, 2025; applies to landline, wireless, and VoIP bills (Human Services § 7-806; Maryland Department of Disabilities) |
| Local line taxes | Montgomery County taxes lines under County Code § 52-15: $2.00 per month on each residence, business, or PBX local exchange access line or trunk line, $3.00 per month on each wireless telephone line, and $0.20 per month on each Centrex local exchange access line or trunk line (Council Resolution, effective July 1, 2010; VoIP is a taxable category under § 52-15 but no source states which of the three rates applies to it); Baltimore City taxes lines at $4.00 per month, $0.40 for Centrex lines (City Code Art. 28, § 25-3) |
| Internet access | Protected from state and local tax by the federal Internet Tax Freedom Act |
How Maryland Taxes Telecom Services
Maryland taxes services by enumeration. Tax-General section 11-101(m) lists the taxable services, and the telecom entries are specific: cellular telephone or other mobile telecommunications service, "900", "976", "915", and other "900"-type telecommunications services, custom calling service provided in connection with basic telephone service, telephone answering services, pay-per-view television service, and prepaid telephone calling arrangements. Section 11-104 sets the rate at 6%. Services the list omits stay outside the tax, and the list does not name basic local exchange service or plain long-distance transmission.
The resale exemption is written into the definitions. A sale is not a retail sale when the buyer intends to resell the taxable service in the form received (Tax-General section 11-101(h)(3)(iii)), so carrier-to-carrier sales for resale sit outside the tax with the right documentation.
Maryland added a second rate in 2025. House Bill 352 (Chapter 604 of 2025) imposed a 3% sales and use tax on data, information technology, and software publishing services described under NAICS sectors 518, 519, 5415, and 5132, effective July 1, 2025. Telecommunications sits in NAICS sector 517, which the 3% statute does not name, so the lower rate does not reach telecom by its own terms. Tax-General section 11-104(l)(2) adds that when a different rate could apply to the same sale, the higher rate applies, and the Comptroller's Technical Bulletin 56 explains the same rule. A telecom provider selling data processing, hosting, or other adjacent services in Maryland now has two rates to map, by service, on the same invoice.
The fee layer is where Maryland gets heavy. Five separate per-line or per-transaction charges can attach to a Maryland telecom bill: the state 911 fee, a county 911 fee, the 988 fee, the Universal Service Trust Fund surcharge, and, in two jurisdictions, a local line tax. Each has its own base, its own remittance schedule, and its own collection allowance.
911 And Other Per-Line Fees
Maryland funds 911 in two layers. The state 911 fee is $0.50 per month for each switched local exchange access service, CMRS, or other 9-1-1-accessible service (Public Safety section 1-310). Each county adds its own fee under Public Safety section 1-311, and the 9-1-1 Board's schedule effective July 1, 2026 lists county fees from $0.75 (Baltimore, Cecil, and Saint Mary's counties) to $4.25 (Dorchester County), for combined 911 fees of $1.25 to $4.75 per line, per month. Counties change their fees at the start of a fiscal year, so the board's table is the place to check a specific county. Providers remit monthly to the Comptroller by the 23rd and may keep 0.50% of the state portion only.
The board's counting rules matter for business services. Each separate outbound call voice channel counts as its own 9-1-1-accessible service, regardless of technology, so a trunk with 23 voice channels pays 23 fees. CMRS provided to multiple devices sharing one mobile number counts once. A broadband connection not used for telephone service does not count. For shared multi-state voice capacity, the fee applies only to the Maryland portion shown in the provider's books, based on end-user locations.
Prepaid wireless pays at the register: a prepaid wireless E 9-1-1 fee of 60 cents per retail transaction, collected by the seller, which may keep 3% before remitting to the Comptroller. The fee is not subject to sales and use tax (Public Safety section 1-313).
Two more charges ride on Maryland bills. The 988 fee is 25 cents per month per subscriber for switched local exchange access service, CMRS, or other 9-8-8-accessible service, with a 25-cent prepaid wireless version starting July 1, 2027 (Health-General sections 7.5-5A-03.1 and 7.5-5A-03.2). The Universal Service Trust Fund surcharge, capped by statute at 18 cents per month per account, is set at $0.09 per month effective July 1, 2025 and applies to landline, wireless, and VoIP bills; it funds Maryland Relay and related programs (Human Services section 7-806; Maryland Department of Disabilities).
Two local governments tax the lines themselves. Montgomery County's telephone tax under County Code section 52-15 falls on the provider and covers residence, business, and private branch exchange (PBX) access lines, Centrex lines, wireless lines, and VoIP service, with an exemption for lifeline landlines. The rates, set by County Council resolution effective July 1, 2010, are $2.00 per month on each residence, business, or PBX access line or trunk line, $3.00 per month on each wireless telephone line, and $0.20 per month on each Centrex access line or trunk line. The county's own materials name VoIP as a taxed category without stating which of the three rates a VoIP line pays. Baltimore City taxes every wired or wireless telecommunications line at $4.00 per month, with a $0.40 rate for Centrex local exchange access lines (City Code Article 28, section 25-3).
Taxability By Service Type
- Cellular or other mobile telecommunications service: taxable at 6% (Tax-General § 11-101(m)(4)).
- "900", "976", "915", and other "900"-type services: taxable at 6% (§ 11-101(m)(5)).
- Custom calling service sold with basic telephone service: taxable at 6% (§ 11-101(m)(6)).
- Telephone answering services: taxable at 6% when message-taking is the service (§ 11-101(m)(7), (m-1)).
- Pay-per-view television service: taxable at 6% (§ 11-101(m)(8)).
- Prepaid telephone calling arrangements: taxable at 6% at retail (§ 11-101(m)(12)); prepaid wireless also pays the 60-cent E 9-1-1 fee per retail transaction.
- Basic local exchange service and plain long-distance transmission: not named in the taxable-services list (see verify note).
- Sales for resale to another provider: excluded from retail sale when the buyer resells the service in the form received (§ 11-101(h)(3)(iii)).
- Data, hosting, and information technology services: taxable at 3% under NAICS sectors 518, 519, and 5415; telecommunications services under NAICS 517 sit outside the 3% statute, and the higher rate applies when a sale could take either (Tax-General § 11-104(l)).
- Internet access: protected from state and local tax by the federal Internet Tax Freedom Act.
How CereTax Handles Maryland
Maryland's difficulty is the fee stack and the two-rate map. One invoice can carry 6% tax on some lines, 3% tax on adjacent data services, a state 911 fee, a county 911 fee that differs across 24 jurisdictions, a 988 fee, the Universal Service Trust Fund surcharge, and a Montgomery County or Baltimore City line tax, each with its own base and counting rules. CereTax assigns each charge to the right county and city at the rooftop level, applies Maryland's base rules by service type, and keeps an audit trail behind every calculation. If you serve customers in Maryland, book a demo and bring a real invoice.
For the full evaluation checklist, see what a telecom tax engine should do.
Sources
- Md. Code, Tax-General § 11-101, taxable services, definitions, and resale exclusion. Maryland General Assembly. Accessed August 28, 2026.
- Md. Code, Tax-General § 11-104, sales and use tax rates, including the 3% rate under § 11-104(l). Maryland General Assembly. Accessed August 28, 2026.
- Md. Code, Public Safety § 1-310, state 9-1-1 fee. Maryland General Assembly. Accessed August 28, 2026.
- Md. Code, Public Safety § 1-311, county 9-1-1 fee. Maryland General Assembly. Accessed August 28, 2026.
- Md. Code, Public Safety § 1-313, prepaid wireless E 9-1-1 fee. Maryland General Assembly. Accessed August 28, 2026.
- Md. Code, Health-General § 7.5-5A-03.1 and § 7.5-5A-03.2, 988 fee and prepaid wireless 988 fee (Chapter 781 of 2024). Maryland General Assembly. Accessed August 28, 2026.
- Md. Code, Human Services § 7-806, Universal Service Trust Fund surcharge. Maryland General Assembly. Accessed August 28, 2026.
- Comptroller of Maryland, Technical Bulletin 56, sales and use tax on data or information technology services and software publishing services (House Bill 352, Chapter 604 of 2025). Accessed August 28, 2026.
- Maryland 9-1-1 Board, Maryland Department of Emergency Management, FY27 9-1-1 fee procedures and table of 9-1-1 surcharges by county, fees effective July 1, 2026, from the 9-1-1 Board page. Accessed September 3, 2026.
- Maryland Department of Disabilities, Telecommunications Access of Maryland, Universal Service Trust Fund memorandum ($0.09 effective July 1, 2025). Accessed August 28, 2026.
- Montgomery County Department of Finance, telephone tax information (County Code § 52-15). Accessed August 28, 2026.
- Montgomery County Council, resolution amending telephone tax rates effective July 1, 2010, and County Executive transmittal memorandum dated April 26, 2010, setting $2.00 (access line), $3.00 (wireless), and $0.20 (Centrex) per month. Montgomery County Council legislative record. Accessed August 28, 2026.
- Baltimore City Code, Article 28, § 25-3, telecommunications tax rate. Baltimore City Law Library. Accessed August 28, 2026.
- Internet Tax Freedom Act, 47 U.S.C. § 151 note.
See how other states compare on the telecom tax by state hub.
Note: Always confirm current rates and filing obligations directly with the state’s DOR, PUC, or 911 authority before applying charges or remitting payments.
