A few new Maryland laws and tax changes went into effect on July 1, 2025. They could impact how your business operates, especially with hiring, digital services, and compliance.
Changes to sales tax: What’s covered under “tech tax?”
Maryland expanded its 6% sales and use tax to include a range of digital services:
- Website and app design
- Cloud computing services
- Data analytics and storage
- Digital marketing and online advertising
View the full list of services that are now subject to the “tech tax.”
What this means for your business
- If you offer these services, you may now be required to collect and remit sales tax.
- If you use these services, review your vendor’s invoices to see if the tax has been added and adjust your budget.
Employment law updates: What to know about hiring and pay practices
Two workplace laws also went into effect. Both changes are designed to increase fairness and transparency for Maryland workers.
Limits on non-compete agreements
- Maryland employers can no longer enforce non-compete clauses for employees who make $120,000 or less each year.
- For health care workers, the threshold is $350,000/year.
Pay transparency requirement
Employers must include a pay range in all job postings.
What this means for your business
- Review and update any standard employment contracts that include non-compete language.
- Ensure all your job listings include salary ranges.
- Revise your current internal policies around pay transparency and equity as needed.
Other notable law changes to know about
- Digital advertising tax: Applies to MD businesses with $1 million+ in annual digital ad revenue.
- New rules for landlords: You must attach an annually updated Tenants’ Bill of Rights to all your residential leases.
- Minimum wage reminder: Starting January 1, 2026, the statewide minimum wage increases to $15/hour.
- Corporate Transparency Act (Federal): Many LLCs and small corporations must now file ownership information with the U.S. Treasury’s Financial Crimes Enforcement Network.
Not sure whether your business is affected by these changes? A quick call to your accountant or legal advisor can help you stay compliant.
Let’s stay informed and ready
Being aware of the changes helps you avoid surprises, plan ahead, and make confident business decisions.
You don’t have to navigate these changes alone. We’re here to support your business through budget reviews, tax season prep, and answer any questions about your business finances.
Check out our business services and connect with an advisor who understands your local business challenges.
