One Week Until Maryland’s New Tech Tax Takes Effect: What Your Business Needs to Know

Starting July 1, 2025, Maryland’s new 3% tax on data processing and IT services will take effect. If your business provides or uses tech services, this tax may impact your operations or costs.

Here’s what you need to know

·     Effective Date: Tuesday, July 1, 2025.

·     What’s Taxed: Data processing and IT services covered by NAICS sector 518, 519, 5132, or 5415, including cloud computing and software as a service (SaaS), depending on use and structure.

·     Who’s Affected: Businesses that sell or purchase qualifying data and tech services in Maryland.

View the Comptroller’s regulations and guidance. Have concerns? Contact CompMDLegal@marylandtaxes.gov, or Maryland Chamber Vice President of Government Affairs Grason Wiggins at gwiggins@mdchamber.org with technical or compliance questions.

We Need Your Help: Let’s Build a Better Path for Maryland Business

Maryland’s budget deficit isn’t going away — and businesses are likely to remain the top target for new taxes and regulations. The tech tax is just the first in what could become a steady stream of costly policies threatening our state’s future economic competitiveness.

We need your voice and support to help make Maryland a place where businesses can stay, grow and succeed.

Here’s how you can get involved: 

·     Join the Chamber — Be part of Maryland’s leading voice for business.

·     Serve on a Policy Committee — Help shape smart, pro-growth policy.

·     Support Our PAC — Elect leaders who understand business.

·     Back Our Advocacy — Your engagement powers our work.