2026 tax year · Maryland
Marketplace seller taxes in Maryland
Etsy, eBay, Shopify and the rest report your gross and withhold nothing. The gap between that and what you are taxed on is your costs, in Maryland that gap is worth $7,119 in tax.
Take a driver who grossed $45,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the marketplace seller page $26,775 comes off and $18,225 is left as taxable profit. That profit is what Maryland and the IRS charge against.
What that leaves you owing in Maryland
Maryland uses graduated 2026 income tax brackets topping out at 6.5%, across 10 brackets, on top of federal income tax and self-employment tax.
| Self-employment tax | $2,575 |
| Federal income tax | $67 |
| Maryland income tax | $752 |
| Total tax | $3,394 |
| Effective rate on gross | 7.5% |
Earning more in Maryland
A single filer taking the standard deduction, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Maryland tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $15,000 | $0 | $15,000 | $610 | $2,729 | 18.2% |
| Steady side income | $45,000 | $0 | $45,000 | $1,934 | $10,513 | 23.4% |
| Full-time | $72,000 | $0 | $72,000 | $3,126 | $17,929 | 24.9% |
Maryland specifics that change the number
On the 2026 rate itself: new 6.25% and 6.5% high-income brackets added in 2025 BRF Act, effective retroactively.
Maryland's standard deduction is a percentage of adjusted gross income with a floor and a cap, which this calculator cannot express, so it is not applied. Maryland tax shown here is computed on full income and is therefore slightly overstated.
Maryland also has local income tax that the estimate above does not model, all counties require local tax filing (2.25% to 3.20% depending on county). Add it separately for where you live and work.
Selling into and out of Maryland
Income tax follows you: Maryland taxes your profit wherever the buyer was. Sales tax does not. Marketplace facilitator laws make the platform collect and remit sales tax on your behalf in most states, which is why a seller can have customers in all fifty and still file only one income tax return. Selling off-platform is where that stops being true.
On $18,225 of profit, what the states around Maryland would charge:
| State | Its tax | vs Maryland |
|---|---|---|
| West Virginia | $442 | −$371 |
| Pennsylvania | $560 | −$254 |
| Delaware | $656 | −$157 |
| Virginia | $790 | −$23 |
| Washington DC | $894 | +$80 |
- West Virginia would take $371 less, $442 against Maryland's $813.
- Pennsylvania would take $254 less, $560 against Maryland's $813.
- Delaware would take $157 less, $656 against Maryland's $813.
- Virginia would take $23 less, $790 against Maryland's $813.
- Washington DC would take $80 more, $894 against Maryland's $813.
Marketplace seller tax questions in Maryland
How much should a Maryland seller set aside?
About 7.5% of gross on the $45,000 example, $3,394 across self-employment tax, federal income tax and $752 to Maryland. In practice that means moving about $75 of every $1,000 payout into a separate account the day it lands, and sending roughly $849 to the IRS each quarter, no platform withholds any of this for you. Set aside from each payout rather than finding it in April.
Does the $45,000 on my 1099-NEC match what Maryland taxes?
No. Maryland taxes profit, not gross. After $26,775 of deductions the taxable figure is $18,225, so the Maryland bill is $752 rather than what gross alone would suggest. The form reports what the platform paid out, it knows nothing about your costs, and no one subtracts them for you. On this example 60% of the gross never becomes taxable income, but only for the seller who kept the records to prove it.