Taylor Legal Blog

Using Zoom in Maryland? Here's What the New Sales Tax Means to You.

Posted by Katherine L. Taylor, Attorney and CPA, Chief Problem SolverAug 31, 20250 Comments

In late June 2025, many Maryland business owners received an unexpected email from Zoom Communications, the California-based video conferencing company. Unlike the usual billing notices, this message served as a warning: Zoom would soon begin collecting sales tax from all of its Maryland customers.

The reason for the change is Maryland's new “tech tax,” which took effect on July 1, 2025. This tax requires companies that provide streaming services, cloud computing, and other IT-related services to collect sales tax from Maryland-based business customers and remit it to the state.

This is classified as a B2B (business-to-business) tax and generally does not apply to individual users. For instance, personal Zoom account holders are unlikely to be affected. However, enterprise users—businesses with team or corporate accounts—are already seeing this tax appear on their invoices.

This change is part of a broader trend across the country, as states continue to explore new ways to generate revenue, particularly by taxing services provided by out-of-state companies. Although the tax is technically levied on the business, many companies are expected to raise their prices to cover the added cost, effectively passing it on to the end user.