New Tax Year 2025 Changes

During the 2025 legislative session, the Maryland General Assembly passed the Budget Reconciliation and Financing Act (BRFA), which makes several changes to Maryland’s tax laws beginning in the 2025 tax year and beyond.

This page will be updated regularly with detailed information, official guidance, and resources to assist taxpayers, businesses, and tax professionals to understand and comply with these changes.

Update May 14, 2025- Webinars for 2025 Tax Season Changes

Webinars: The Office of the Comptroller will host several webinars during the last week of May to ensure Marylanders can hear about how these tax law changes will impact Maryland businesses. Register for a webinar below.  

Registration for these webinars is limited, and we will be sharing the webinars on this website and on our  YouTube page  to ensure those unable to make one of the webinars can still access the information.

2025 Tax Changes Webinar Schedule

• Tech Industry 2025 Tax Changes Webinar:
  Wednesday, May 28, 10a.m.-11a.m.
  Register Here

• Business Owners 2025 Tax Changes Webinar (First of Two):
  Thursday, May 29, 1 p.m.-2 p.m.
  Register Here

• Business Owners 2025 Tax Changes Webinar (Second of Two): 
  Thursday, May 29, 4 p.m.-5 p.m.
  Register Here

• Tax Professionals 2025 Tax Changes Webinar:
  Friday, May 30 11 a.m.-12 p.m.
  Register Here

Update May 15, 2025- Registering for Maryland Tax Connect

Some of the 2025 tax changes passed by the Maryland General Assembly may mean that businesses will need to collect sales and use taxes for the first time. Ahead of July 1, 2025, impacted businesses should register for an account with Maryland Tax Connect, a self-service portal that allows Maryland business taxpayers to file their taxes online easily and securely and interact with the Comptroller’s office in various ways.

The portal is designed to allow taxpayers to complete several simple and important functions themselves, accessible from either a mobile device or on a desktop, including:

• Making online payments
• Updating personal information
• Retrieving tax information
• Filing returns
• Viewing filing and tax history
• Registering a business
• Applying for or renewing business licenses

Below are the links to the Maryland Tax Connect guides and tutorials for applying for a sales tax account, registering for a Maryland Tax Connect account and filing an SUT return. All MTC guides, tutorials and webinar recordings are centralized on the following page: Tax Guidance - NEW Maryland Tax Connect Portal Information - Taxpayer Services

Video Tutorials

• Maryland Tax Connect Register A Business – This is the video tutorial for completing a Combined Registration Application.
• Business Registration Guide (PDF) – This is the user guide for completing a Combined Registration Application. 
• Maryland Tax Connect Registration and Linking Tax Accounts Guide (PDF) – User guide to set up Maryland Tax Connect account. 
• Maryland Tax Connect - File a Form Guide – File a SUT return video tutorial.
• File a Form and Pay As a Registered User Guide (PDF) – File and Pay SUT user guide.
• Maryland Tax Connect Webinar 05/09/2024 – This is a link to a previously recorded webinar on the MTC registration process that also includes an SUT filing demo. 

Update May 15, 2025- NAICS Codes Meaning

The 2025 BRFA imposes a 3% sales and use tax on “data or information technology service as described under NAICS Sector 518, 519, or 5415” and “a system software or application software publishing service described under NAICS Sector 5132,” 2022 Edition. 

The North American Industry Classification System (“NAICS”) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. Business economy. 

Note that the Maryland sales and use tax is not imposed based on the classification the business reports as their primary business activity code for federal and state income tax purposes. Instead, the NAICS business activity descriptions define the services subject to the Maryland sales and use tax. We encourage businesses to visit www.census.gov/naics for additional information, including descriptions of services subject to the tax.