Maryland Sales Tax on Tips
- Sales Tax News
- May 24, 2012 | Susan McLain
Maryland Senate Bill 852, effective July 1, 2012 imposes a sales and use tax on “…a mandatory gratuity or service charge in the nature of a tip for serving food or any type of beverage to a group of more than 10 individuals….” The sales and use tax rate is 6%.
The sales and use tax rate for the taxable price of an alcoholic beverage is 9%.