Tax - General (GTG) — Title 5. Alcoholic Beverage Tax
Statutes in effect as of October 1, 2026.
Subtitle 1. Definitions; General Provisions
Md. Code Ann., Tax-Gen. § 5-101 (2026)
Title 5. Alcoholic Beverage Tax
Subtitle 1. Definitions; General Provisions
§ 5–101LinkCopy Citation
(a)
In this title the following words have the meanings indicated.
(b)
(1)
“Alcoholic beverage” means a spirituous, vinous, malt, or fermented liquor, liquid, or compound that:
(i)
is fit for beverage purposes; and
(ii)
contains one–half of 1% or more of alcohol by volume.
(2)
“Alcoholic beverage” includes:
(i)
beer;
(ii)
distilled spirits; and
(iii)
wine.
(c)
“Alcoholic beverage license” means an alcoholic beverage license or permit issued under the Alcoholic Beverages and Cannabis Article.
(d)
(1)
“Beer” means a brewed alcoholic beverage.
(2)
“Beer” includes:
(i)
ale;
(ii)
porter;
(iii)
stout;
(iv)
hard cider, as defined in § 1–101(c) of the Alcoholic Beverages and Cannabis Article; and
(v)
alcoholic beverages that contain:
(1)
6% or less alcohol by volume, derived primarily from the fermentation of grain, with not more than 49% of the beverage’s overall alcohol content by volume obtained from flavors and other added nonbeverage ingredients containing alcohol; or
(2)
more than 6% alcohol by volume, derived primarily from the fermentation of grain, with not more than 1.5% of the beverage’s overall alcohol content by volume obtained from flavors and other added nonbeverage ingredients containing alcohol.
(e)
“Consumer” means a person who buys, possesses, or transports an alcoholic beverage for a purpose other than selling the alcoholic beverage.
(f)
“Direct wine shipper” has the meaning stated in § 2–142 of the Alcoholic Beverages and Cannabis Article.
(g)
(1)
“Distilled spirits” means a distilled alcoholic beverage.
(2)
“Distilled spirits” includes:
(i)
alcohol;
(ii)
brandy;
(iii)
cordials;
(iv)
gin;
(v)
liqueur;
(vi)
rum;
(vii)
vodka;
(viii)
whiskey; and
(ix)
solutions or mixtures of distilled spirits except fortified wines.
(h)
“Manufacturer” means a person who operates within the State a place of business for blending, bottling, brewing, distilling, fermenting, or rectifying an alcoholic beverage.
(i)
“Nonresident dealer” means a person who is required to obtain a nonresident dealer’s permit under § 2–124 of the Alcoholic Beverages and Cannabis Article.
(j)
“Person” includes:
(1)
this State or a political subdivision, unit, or instrumentality of this State;
(2)
another state or a political subdivision, unit, or instrumentality of that state; and
(3)
a unit or instrumentality of a political subdivision of this State or of another state.
(k)
“Resident dealer” means a person who is required to obtain a resident dealer’s permit under § 2–125 of the Alcoholic Beverages and Cannabis Article.
(l)
(1)
“Retail dealer” means a person who buys an alcoholic beverage for sale to a consumer.
(2)
“Retail dealer” includes a county department of liquor control, a liquor control board, or the Alcohol Beverage Services for Montgomery County that operates a dispensary.
(m)
(1)
“Wholesaler” means a person who buys or imports an alcoholic beverage for sale to another person for resale.
(2)
“Wholesaler” includes a county department of liquor control, a liquor control board, or the Alcohol Beverage Services for Montgomery County that operates a wholesale dispensary.
(n)
(1)
“Wine” means a fermented alcoholic beverage.
(2)
“Wine” includes:
(i)
carbonated, flavored, imitation, sparkling, or still wine;
(ii)
champagne;
(iii)
cider;
(iv)
fortified wine;
(v)
perry;
(vi)
sake; and
(vii)
vermouth.
Md. Code Ann., Tax-Gen. § 5-102 (2026)
Title 5. Alcoholic Beverage Tax
Subtitle 1. Definitions; General Provisions
§ 5–102LinkCopy Citation
(a)
Except as provided in § 5-104 of this subtitle, a tax is imposed on any alcoholic beverage in the State.
(b)
A tax is imposed on each person who sells or consigns an alcoholic beverage in the State from a jurisdiction outside the State, if the Comptroller finds that, in connection with the solicitation, sale, and distribution of alcoholic beverages, the jurisdiction:
(1)
requires a tax, assessment, or charge that is greater for alcoholic beverages consigned from a Maryland licensee or permit holder than the amount required for alcoholic beverages consigned from a licensee or permit holder in another jurisdiction; and
(2)
discriminates in fact against the licensee or permit holder of the State.
(c)
(1)
A county, municipal corporation, special taxing district, or other political subdivision of the State may not impose a tax on any alcoholic beverage.
(2)
The Comptroller may not impose the tax under subsection (b) of this section on a person who has distillery plants in this and another state.
Md. Code Ann., Tax-Gen. § 5-103 (2026)
Title 5. Alcoholic Beverage Tax
Subtitle 1. Definitions; General Provisions
§ 5–103LinkCopy Citation
(a)
A rebuttable presumption exists that any alcoholic beverage in the State is subject to the alcoholic beverage tax.
(b)
An alcoholic beverage on which the alcoholic beverage tax is not paid is a contraband alcoholic beverage if it is delivered, possessed, sold, or transported in the State in a manner that is not authorized:
(1)
under this title; or
(2)
under the Alcoholic Beverages Article.
(c)
The person who possesses an alcoholic beverage has the burden of proving that the alcoholic beverage is not subject to the alcoholic beverage tax.
Md. Code Ann., Tax-Gen. § 5-104 (2026)
Title 5. Alcoholic Beverage Tax
Subtitle 1. Definitions; General Provisions
§ 5–104LinkCopy Citation
(a)
(1)
The alcoholic beverage tax does not apply to an alcoholic beverage that is:
(i)
brought into the State by a person in accordance with:
(1)
an import–export permit under § 2–123(b) of the Alcoholic Beverages and Cannabis Article;
(2)
a nonbeverage permit under § 2–164 of the Alcoholic Beverages and Cannabis Article; or
(3)
a nonresident storage permit under § 2–115 of the Alcoholic Beverages and Cannabis Article;
(ii)
sold or delivered by a person who holds a Class E, F, or G alcoholic beverage license, while the licensee is operating an aircraft, vessel, or train outside boundaries of the State, including airspace and waterways;
(iii)
beer or wine that is family–produced and is brought into, possessed, or transported in the State by an individual who is a member of that family if:
(1)
the individual is at least 21 years of age; and
(2)
the beer or wine is for personal use or for entry in a licensed national family beer and wine exhibition; or
(iv)
brought into the State by a person for storage pending shipment outside of the State, if the alcoholic beverage:
(1)
is not held for sale, consignment, or delivery in the State;
(2)
is under a customs bond; and
(3)
is stored in a public bonded warehouse.
(2)
The exemption under paragraph (1)(ii) of this subsection does not apply to an alcoholic beverage sold or delivered by a person who holds a Class E, F, or G alcoholic beverage license while the licensee is operating an aircraft, vessel, or train within the boundaries of the State, including airspace and waterways.
(b)
(1)
The alcoholic beverage tax does not apply to:
(i)
an alcoholic beverage bought by a person whom a proper authority of the United States allows to buy alcoholic beverages for sale and use on a federal reservation in the State where the person is assigned;
(ii)
wine bought and used for sacramental purposes by a religious organization affiliated with and recognized by a generally acknowledged religious faith; or
(iii)
wine or distilled spirits bought and used for medicinal purposes by a bona fide hospital.
(2)
A person under paragraph (1) of this subsection who pays the alcoholic beverage tax may obtain the exemption by filing a claim for refund with the Comptroller.
(c)
(1)
The alcoholic beverage tax does not apply to an alcoholic beverage that a consumer at least 21 years of age brings into the State for personal use:
(i)
if the quantity brought from within the continental United States does not exceed:
(1)
at any one time, one quart;
(2)
in 1 calendar month, two quarts; and
(3)
a total of 1 gallon in the consumer’s possession at any one time;
(ii)
if the quantity brought from American Samoa, Guam, or the Virgin Islands of the United States does not exceed 1 gallon; or
(iii)
if the total quantity brought from any other place outside the continental United States does not exceed 1 gallon, the 1st quart of that gallon.
(2)
A consumer under paragraph (1)(iii) of this subsection may obtain the exemption for the 1st quart by:
(i)
filing an application with the Comptroller on the form the Comptroller requires; and
(ii)
paying the alcoholic beverage tax on the quantity of alcoholic beverages that exceeds 1 quart.
Md. Code Ann., Tax-Gen. § 5-105 (2026)
Title 5. Alcoholic Beverage Tax
Subtitle 1. Definitions; General Provisions
§ 5–105LinkCopy Citation
(a)
Except as provided in subsection (d) of this section, the alcoholic beverage tax rate for distilled spirits is:
(1)
$1.50 for each gallon or 39.63 cents for each liter; and
(2)
if distilled spirits contain a percentage of alcohol greater than 100 proof, an additional tax, for each 1 proof over 100 proof, of 1.5 cents for each gallon or 0.3963 cents for each liter.
(b)
Except as provided in subsection (d) of this section, the alcoholic beverage tax rate for wine is 40 cents for each gallon or 10.57 cents for each liter.
(c)
Except as provided in subsection (d) of this section, the alcoholic beverage tax rate on beer and mead is 9 cents for each gallon or 2.3778 cents for each liter.
(d)
The tax imposed under § 5–102(b) of this subtitle shall equal the amount that the discriminating jurisdiction charges a Maryland licensee or permit holder.
Subtitle 2. Returns
Md. Code Ann., Tax-Gen. § 5-201 (2026)
Title 5. Alcoholic Beverage Tax
Subtitle 2. Returns
§ 5–201LinkCopy Citation
(a)
A person who holds a Class E, F, or G alcoholic beverage license shall complete, under oath, and file with the Comptroller an alcoholic beverage tax return:
(1)
on or before the 25th day of the month that follows the month in which the person sells any alcoholic beverage within the boundaries of the State; and
(2)
if the Comptroller so specifies, by regulation, on other dates for each month in which the licensee does not sell any alcoholic beverages in the State.
(b)
(1)
Each manufacturer and each wholesaler shall complete, under oath, and file with the Comptroller an alcoholic beverage tax return:
(i)
except as provided in paragraph (2) of this subsection, on or before the 10th day of the month that follows the month in which:
(1)
the manufacturer or wholesaler sells or delivers any alcoholic beverage in the State;
(2)
a manufacturer that brews malt beverages, under a Class 6 pub–brewery license, transfers the malt beverages for consumption on the restaurant premises in accordance with federal alcohol tax laws and regulations; or
(3)
a manufacturer that brews malt beverages, under a Class 7 micro–brewery license, transfers the malt beverages for consumption off the micro–brewery licensed premises in accordance with federal alcohol tax laws and regulations; and
(ii)
if the Comptroller so specifies, by regulation, on other dates for each month in which the manufacturer or wholesaler does not sell, deliver, or transfer any alcoholic beverage in the State.
(2)
(i)
Subject to subparagraph (ii) of this paragraph, the Comptroller may, by regulation, establish dates for filing the alcoholic beverage tax returns required under this subsection.
(ii)
Any filing date established under subparagraph (i) of this paragraph shall be at least 5 days later than the day specified for filing a return under paragraph (1)(i) of this subsection.
(c)
A nonresident dealer shall complete, under oath, and file with the Comptroller an alcoholic beverage tax return:
(1)
on or before the 15th day of the month that follows the month in which the nonresident dealer delivers beer into the State; and
(2)
if the Comptroller so specifies, by regulation, on other dates for each month in which the nonresident dealer does not deliver beer into the State.
(d)
A person who is a direct wine shipper shall file with the Office of the Comptroller a quarterly tax return.
(e)
A resident dealer shall complete, under oath, and file with the Comptroller an alcoholic beverage tax return:
(1)
on or before the 15th day of the month that follows the month in which the resident dealer delivers beer into the State; and
(2)
if the Comptroller so specifies, by regulation, on other dates for each month in which the resident dealer does not deliver beer into the State.
(f)
For periods beginning after December 31, 2026, a person shall file an alcoholic beverage tax return electronically.
Subtitle 3. Tax Payment
Md. Code Ann., Tax-Gen. § 5-301 (2026)
Title 5. Alcoholic Beverage Tax
Subtitle 3. Tax Payment
§ 5–301LinkCopy Citation
(a)
A person who, under a Class E, F, or G alcoholic beverage license, sells or delivers any alcoholic beverages within the boundaries of the State shall pay the alcoholic beverage tax on those alcoholic beverages, in the manner that the Comptroller requires, with the return that covers the period in which the person sells or delivers those alcoholic beverages.
(b)
(1)
A manufacturer that, under an alcoholic beverage license as a winery or limited winery, sells or delivers wine to retail dealers or to consumers in the State shall pay the alcoholic beverage tax on that wine, in the manner that the Comptroller requires, with the return that covers the period in which the manufacturer sells or delivers that wine.
(2)
A manufacturer that sells, to wholesalers or retail dealers for consumption in the State, beer on which the alcoholic beverage tax was not paid before the beer was delivered into the State shall pay the alcoholic beverage tax on that beer, in the manner that the Comptroller requires, with the return that covers the period in which the manufacturer sells that beer.
(3)
A manufacturer that, under a Class 6 pub–brewery license, brews and transfers malt beverages for consumption on restaurant premises in the State shall pay the alcoholic beverage tax on that malt beverage, in the manner that the Comptroller requires, with the return that covers the period in which the manufacturer transfers that malt beverage.
(4)
A manufacturer that, under a Class 7 micro–brewery license, brews and transfers malt beverages for consumption off the micro–brewery licensed premises in the State shall pay the alcoholic beverage tax on that malt beverage, in the manner that the Comptroller requires, with the return that covers the period in which the manufacturer transfers that malt beverage.
(c)
A person who holds a nonresident winery permit under § 2–135 of the Alcoholic Beverages and Cannabis Article that sells or delivers wine to retail dealers in the State shall pay the alcoholic beverage tax on that wine, in the manner that the Comptroller requires, with the return that covers the period in which the wine manufacturer who holds a nonresident winery permit sells or delivers that wine.
(d)
Before a nonresident dealer delivers or ships beer to a wholesaler in the State, the nonresident dealer shall pay the alcoholic beverage tax on that beer, in the manner that the Comptroller requires.
(e)
Before a resident dealer delivers or ships beer to a wholesaler in the State, the resident dealer shall pay the alcoholic beverage tax on that beer, in the manner that the Comptroller requires.
(f)
(1)
A wholesaler that sells or delivers distilled spirits or wine to retail dealers in the State shall pay the alcoholic beverage tax on those distilled spirits and wine, in the manner that the Comptroller requires, with the return that covers the period in which the wholesaler sells or delivers those distilled spirits and wine.
(2)
A wholesaler that imports beer directly from a place outside the United States shall pay the alcoholic beverage tax on that beer, in the manner that the Comptroller requires, before the wholesaler receives that beer in the State.
(g)
A person who pays the alcoholic beverage tax shall obtain:
(1)
tax stamps or certificates if required for distilled spirits under § 5–303 of this subtitle; or
(2)
any other evidence of tax payment that the Comptroller requires by regulation.
Md. Code Ann., Tax-Gen. § 5-302 (2026)
Title 5. Alcoholic Beverage Tax
Subtitle 3. Tax Payment
§ 5–302LinkCopy Citation
Unless otherwise authorized in this title or in the Alcoholic Beverages Article, a person may not buy, possess, sell, store, transport, or allow another person to buy, store, sell, or transport an alcoholic beverage on which the alcoholic beverage tax is not paid.
Md. Code Ann., Tax-Gen. § 5-303 (2026)
Title 5. Alcoholic Beverage Tax
Subtitle 3. Tax Payment
§ 5–303LinkCopy Citation
(a)
For a container of distilled spirits that is one-half pint or larger, the alcoholic beverage tax shall be paid by the purchase of tax stamps from the Comptroller or by an alternate method approved by the Comptroller, in the manner and at the time that the Comptroller requires by regulation.
(b)
A manufacturer or a wholesaler shall affix tax stamps to each container of distilled spirits of one-half pint or larger before the container is removed from the manufacturer’s or wholesaler’s place of business for delivery to a retail dealer in the State.
(c)
The Comptroller may allow tax stamps to be bought on a credit basis.
(d)
A manufacturer or wholesaler who obtains tax stamps:
(1)
is responsible to the Comptroller for the tax stamps; and
(2)
is required to pay the value of the tax stamps whether they are used, lost, or, unless proof of destruction is made to the Comptroller, destroyed.