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Sales tax on labor in Maryland: not taxed on repairs to things, building repairs and new construction; installation depends on the job
In Maryland, labor is not taxed on repairs to things, building repairs and new construction; for installation it depends on the job. Read from Maryland's own revenue pages, checked November 6, 2026, with every answer quoted below.
Repairing a thing in Maryland
Not taxed. Repair labor on a thing is not taxed in Maryland. If you charge one lump sum for the repair, nothing is taxed (you pay tax on the parts when you buy them). If you list parts and labor separately, you charge tax on the parts only. Fabrication (making a new or different item) is taxable labor.
- “No, lump-sum charges to repair personal property are exempt. Charges for parts installed on repaired items are taxable if repair labor and parts charges are separately stated.” — Maryland Business Tax Tip #7: Are Repairs to Personal Property Taxable?, page date: Revised October 4, 2021
- “The restoration of used property to its original condition or usefulness is repair, which is not taxable. The creation or completion of a new or different item is fabrication, which is taxable.” — Maryland Business Tax Tip #7, page date: Revised October 4, 2021
Repairing a home or building in Maryland
Not taxed. Labor to repair a building is not taxed, whether it is listed separately or billed as one lump sum.
- “Labor charges (whether separately stated or lump-sum billed) to install, erect, assemble, or repair real property are not taxable. Separately stated labor charges for installing personal property are not taxable either. But when the installation charge is not separately stated, the entire sales price for the personal property, including the installation, is taxable.” — Maryland Business Tax Tip #18: Real Property Contractors and Maryland Taxes, page date: Updated February 14, 2022
Installation work in Maryland
It depends. Installing something into a building (real property) is not taxed. Installing personal property you sell is not taxed only if the installation charge is listed separately; otherwise the whole price is taxed. What it turns on: whether the item becomes real property, and for personal property, whether the installation charge is separately stated.
- “Labor charges (whether separately stated or lump-sum billed) to install, erect, assemble, or repair real property are not taxable. Separately stated labor charges for installing personal property are not taxable either. But when the installation charge is not separately stated, the entire sales price for the personal property, including the installation, is taxable.” — Maryland Business Tax Tip #18: Real Property Contractors and Maryland Taxes, page date: Updated February 14, 2022
New construction in Maryland
Not taxed. Labor to install, erect or assemble real property is not taxed. The contractor pays sales tax on building materials and supplies.
- “Labor charges (whether separately stated or lump-sum billed) to install, erect, assemble, or repair real property are not taxable. Separately stated labor charges for installing personal property are not taxable either. But when the installation charge is not separately stated, the entire sales price for the personal property, including the installation, is taxable.” — Maryland Business Tax Tip #18: Real Property Contractors and Maryland Taxes, page date: Updated February 14, 2022
- “Real property contractors must pay the 6 percent sales tax on building materials and supplies.” — Maryland Business Tax Tip #18, page date: Updated February 14, 2022
Listing labor separately on the bill in Maryland
It depends. For installing personal property, a separately stated installation charge is untaxed and a lumped one is taxed. For repairs of things, separately stating means you charge tax on the parts; a lump-sum repair is untaxed to the customer.
- “Labor charges (whether separately stated or lump-sum billed) to install, erect, assemble, or repair real property are not taxable. Separately stated labor charges for installing personal property are not taxable either. But when the installation charge is not separately stated, the entire sales price for the personal property, including the installation, is taxable.” — Maryland Business Tax Tip #18: Real Property Contractors and Maryland Taxes, page date: Updated February 14, 2022
- “No, lump-sum charges to repair personal property are exempt. Charges for parts installed on repaired items are taxable if repair labor and parts charges are separately stated.” — Maryland Business Tax Tip #7: Are Repairs to Personal Property Taxable?, page date: Revised October 4, 2021
Materials on jobs in Maryland
A repairer of things pays tax on parts used in lump-sum repairs, or buys parts for resale when it charges for them separately.
- “Real property contractors must pay the 6 percent sales tax on building materials and supplies.” — Maryland Business Tax Tip #18, page date: Updated February 14, 2022
Trade services Maryland taxes
The services Maryland's own pages name as taxed, each in the page's words:
- Commercial building cleaning: “Cleaning of a commercial or industrial building”
- Security systems service: “Security service, including a: Detective, Guard, or Armored Car Service; and Security Systems Service”
Where Maryland's list of services comes from
- “Charges for services are generally exempt from Maryland sales and use tax unless they are specifically taxable under Maryland law. ... Cleaning of a commercial or industrial building ... Security service, including a: Detective, Guard, or Armored Car Service; and Security Systems Service” — Comptroller of Maryland: Sales and Use Tax list of tangible personal property and services, page date: February 2024
What was not checked for Maryland
- The Maryland list of taxable services used is the February 2024 edition; a newer one, after the state's 2025 tax changes, was not checked.
Check with the Comptroller of Maryland
Before you bill: check with the Comptroller of Maryland. As of November 6, 2026.
This is a plain-words summary of each state's own revenue guidance as of November 6, 2026, not tax advice. Rules have exceptions, and cities and counties can add taxes of their own. Check with the state's tax department, linked on every state's page, before you bill.
Compare Maryland with every state's answer, or with its neighbours just below.
Next door to Maryland
- Delaware: no sales tax; a gross receipts tax on the business
- District of Columbia: home repair depends, installation depends
- Pennsylvania: home repair not taxed, installation depends
- Virginia: home repair not taxed, installation depends
- West Virginia: home repair taxed, installation depends
Official sources for Maryland
- Maryland Business Tax Tip #18 — Updated February 14, 2022
- Maryland Business Tax Tip #7 — Revised October 4, 2021
- Comptroller of Maryland: Sales and Use Tax list of tangible personal property and services — February 2024
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