Tax - General (GTG) — Title 7.5. Digital Advertising Gross Revenues Tax
Statutes in effect as of October 1, 2026.
Subtitle 1. Definitions; General Provisions
Md. Code Ann., Tax-Gen. § 7.5-101 (2026)
Title 7.5. Digital Advertising Gross Revenues Tax
Subtitle 1. Definitions; General Provisions
§ 7.5-101LinkCopy Citation
(a)
In this title the following words have the meanings indicated.
(b)
“Annual gross revenues” means income or revenue from all sources, before any expenses or taxes, computed according to generally accepted accounting principles.
(c)
“Assessable base” means the annual gross revenues derived from digital advertising services in the State.
(d)
“Broadcast entity” means an entity that is primarily engaged in the business of operating a broadcast television or radio station.
(e)
(1)
“Digital advertising services” includes advertisement services on a digital interface, including advertisements in the form of banner advertising, search engine advertising, interstitial advertising, and other comparable advertising services.
(2)
“Digital advertising services” does not include advertisement services on digital interfaces owned or operated by or operated on behalf of a broadcast entity or news media entity.
(f)
“Digital interface” means any type of software, including a website, part of a website, or application, that a user is able to access.
(g)
(1)
“News media entity” means an entity engaged primarily in the business of newsgathering, reporting, or publishing articles or commentary about news, current events, culture, or other matters of public interest.
(2)
“News media entity” does not include an entity that is primarily an aggregator or republisher of third–party content.
(h)
“User” means an individual or any other person who accesses a digital interface with a device.
Md. Code Ann., Tax-Gen. § 7.5-102 (2026)
Title 7.5. Digital Advertising Gross Revenues Tax
Subtitle 1. Definitions; General Provisions
§ 7.5-102LinkCopy Citation
(a)
A tax is imposed on annual gross revenues of a person derived from digital advertising services in the State.
(b)
(1)
For purposes of this title, the part of the annual gross revenues of a person derived from digital advertising services in the State shall be determined using an apportionment fraction:
(i)
the numerator of which is the annual gross revenues of a person derived from digital advertising services in the State; and
(ii)
the denominator of which is the annual gross revenues of a person derived from digital advertising services in the United States.
(2)
The Comptroller shall adopt regulations that determine the state from which revenues from digital advertising services are derived.
(c)
A person who derives gross revenues from digital advertising services in the State may not directly pass on the cost of the tax imposed under this section to a customer who purchases the digital advertising services by means of a separate fee, surcharge, or line–item.
Md. Code Ann., Tax-Gen. § 7.5-103 (2026)
Title 7.5. Digital Advertising Gross Revenues Tax
Subtitle 1. Definitions; General Provisions
§ 7.5-103LinkCopy Citation
The digital advertising gross revenues tax rate is:
(1)
(2)
5% of the assessable base for a person with global annual gross revenues of $100,000,000 through $1,000,000,000;
(2)
5% of the assessable base for a person with global annual gross revenues of $1,000,000,001 through $5,000,000,000;
(3)
(7)
5% of the assessable base for a person with global annual gross revenues of $5,000,000,001 through $15,000,000,000; and
(4)
10% of the assessable base for a person with global annual gross revenues exceeding $15,000,000,000.
Subtitle 2. Returns
Md. Code Ann., Tax-Gen. § 7.5-201 (2026)
Title 7.5. Digital Advertising Gross Revenues Tax
Subtitle 2. Returns
§ 7.5-201LinkCopy Citation
(a)
Each person that, in a calendar year, has annual gross revenues derived from digital advertising services in the State of at least $1,000,000 shall complete, under oath, and file with the Comptroller a return, on or before April 15 of the next year.
(b)
(1)
Each person that reasonably expects the person’s annual gross revenues derived from digital advertising services in the State to exceed $1,000,000 shall complete, under oath, and file with the Comptroller a declaration of estimated tax, on or before April 15 of that year.
(2)
A person required under paragraph (1) of this subsection to file a declaration of estimated tax for a taxable year shall complete and file with the Comptroller a quarterly estimated tax return on or before June 15, September 15, and December 15 of that year.
(c)
A person required to file a return under this section shall file with the return an attachment that states any information that the Comptroller requires to determine annual gross revenues derived from digital advertising services in the State.
(d)
For periods beginning after December 31, 2026, a person shall file a digital advertising gross revenues tax return electronically.
Md. Code Ann., Tax-Gen. § 7.5-202 (2026)
Title 7.5. Digital Advertising Gross Revenues Tax
Subtitle 2. Returns
§ 7.5-202LinkCopy Citation
A person required to file a return under § 7.5–201 of this subtitle shall maintain records of digital advertising services provided in the State and the basis for the calculation of the digital advertising gross revenues tax owed.
Subtitle 3. Tax Payment
Md. Code Ann., Tax-Gen. § 7.5-301 (2026)
Title 7.5. Digital Advertising Gross Revenues Tax
Subtitle 3. Tax Payment
§ 7.5-301LinkCopy Citation
(a)
Except as provided in subsection (b) of this section, each person required to file a return under § 7.5–201 of this title shall pay the digital advertising gross revenues tax with the return that covers the period for which the tax is due.
(b)
A person required to file estimated digital advertising gross revenues tax returns under § 7.5–201(b) of this title shall pay:
(1)
at least 25% of the estimated digital advertising gross revenues tax shown on the declaration or amended declaration for a taxable year:
(i)
with the declaration or amended declaration that covers the year; and
(ii)
with each quarterly return for that year; and
(2)
any unpaid digital advertising gross revenues tax for the year shown on the person’s return that covers that year with the return.