Is Your Business Ready for Major Tax Changes in Washington and Maryland?
- Posted by admin
- On July 9, 2025
- 0 Comments
From 2025, new B&O and sales tax rules could increase your tax burden and compliance risks. Don’t wait—get ahead of these complex changes today.
Tiered B&O rates, expanded sales tax categories in Washington, and a 3% tech services tax in Maryland go into effect starting October 2025.
What’s Changing?
Washington State (2025–2027):
- New tiered B&O tax rates (up to 2.1%) based on Washington revenue
- A 0.5% surcharge on large service businesses
- 7.5% computing surcharge for large tech groups
- Expanded sales tax on IT, software, staffing & consulting services
Maryland (Effective July 1, 2025):
- 3% sales tax on tech services (software, hosting, IT design, etc.)
- Applies to businesses with $100K+ in sales or 200+ transactions in Maryland
- Separate from the current 6% digital products tax
Who Is Affected?
- Software publishers
- SaaS & cloud providers
- IT consulting, design, & support firms
- Advertising & creative service providers
- Businesses with multistate service operations
How Can We Help
- Exposure Analysis (B&O tiers, surcharges, nexus thresholds)
- NAICS Classification Review
- Invoice Structuring & Tax Mapping
- Multistate Nexus & Registration
- Audit-Ready Documentation & Compliance Support
Let’s Simplify This for You
Book your free consultation to understand your exposure and build a compliance plan that protects your margins.
Our multistate tax team supports software, tech, and service businesses nationwide.
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