If you’ve recently hired a plumber in Maryland—or are planning to—you might be wondering: Does a plumber charge tax on work performed in Maryland? You’re not alone. Many homeowners and renters are surprised to find extra charges on their invoices and aren’t sure if they’re legitimate. In this guide, we’ll break down Maryland’s tax laws as they apply to plumbing services—with clarity, authority, and zero guesswork—so you know exactly what to expect before, during, and after the job.
Is Plumbing Work Taxable in Maryland?
Short answer: No—labor for plumbing repairs and installations is generally not subject to sales tax in Maryland. However, there are important nuances.
Maryland distinguishes between tangible goods (like pipes, faucets, or water heaters) and services (like labor to install or repair them). According to the Maryland Comptroller’s Office, labor alone is not taxable. But if your plumber sells you parts or fixtures and installs them, the materials are taxable, even if bundled into one invoice.
💡 Key Insight: You’re only taxed on the materials, not the work. Always ask your plumber to itemize your invoice so you can verify charges.
What Does Maryland Law Say About Service vs. Product Taxation?
Maryland follows a clear principle: Services are not taxable unless explicitly listed in state tax code. Plumbing labor falls under general repair and maintenance—a non-taxable service.
However, real property improvements can blur the lines. For example:
- Repairing a leaky faucet? → Not taxable (service only).
- Installing a new bathroom sink? → Materials are taxable; labor is not.
- Replacing an entire water heater? → The unit (product) is taxable; installation labor is not.
This distinction aligns with broader U.S. tax policy, where most states (including neighboring Virginia and Pennsylvania) also exempt pure labor from sales tax. You can read more about service taxation principles on Wikipedia’s Sales Tax page.
When Are You Charged Tax on Plumbing Services in Maryland?
You’ll owe sales tax only when physical goods are sold as part of the job. Here’s how it typically breaks down:
| Scenario | Taxable? | Why? |
|---|---|---|
| Emergency pipe repair (no parts replaced) | ❌ No | Pure labor |
| Installing a new toilet (plumber provides toilet) | ✅ Yes (on toilet only) | Tangible personal property |
| Replacing a showerhead you bought yourself | ❌ No | Plumber only provided labor |
| Full bathroom remodel with new fixtures | ✅ Yes (on fixtures) | Materials are taxable |
⚠️ Watch out: Some contractors mistakenly (or intentionally) charge tax on the entire invoice. Always request an itemized breakdown.
How Much Sales Tax Do You Pay on Plumbing Materials in Maryland?
As of 2026, Maryland’s state sales tax rate is 6%. However, local jurisdictions may add up to 1%, depending on your county:
- Baltimore City: 6% (no local add-on)
- Montgomery County: 6%
- Frederick County: 6%
- Prince George’s County: 6%
Unlike some states, Maryland does not allow local “piggyback” taxes on top of the base 6% for most goods—including plumbing supplies. So, whether you’re in Annapolis or Hagerstown, you’ll almost always pay exactly 6% sales tax on materials.
📌 Pro Tip: If your plumber charges more than 6% tax, ask for clarification—it could be an error or hidden fee.
Do Licensed Plumbers Handle Tax Collection Themselves?
Yes. In Maryland, any business that sells taxable goods—including plumbing contractors who supply parts—must be registered with the Comptroller’s Office to collect and remit sales tax.
This means:
- Your plumber should already have a sales tax license.
- They collect the 6% tax at the time of sale (on materials).
- They submit it to the state—you don’t pay it separately.
If a plumber says, “I don’t collect tax,” but sells you a water heater, that’s a red flag. They’re legally required to do so.
You can verify a business’s tax registration using the Maryland Business Express portal, though most reputable plumbers will display their license number on invoices or vehicles.
Common Mistakes Homeowners Make (And How to Avoid Them)
- Assuming “all-inclusive” pricing includes tax
→ Always confirm whether tax is included or added later. - Not asking for an itemized invoice
→ Without it, you can’t verify if tax was applied correctly. - Paying cash “under the table” to avoid tax
→ This skips tax on materials and voids warranties or insurance claims. - Confusing plumbing with HVAC or electrical work
→ Rules are similar, but always confirm per trade—Maryland treats each consistently, but local interpretations can vary.
Real Example: What a $1,200 Plumbing Job Might Look Like
Let’s say you hire a plumber to:
- Replace a broken water heater ($900)
- Labor for installation ($300)
Correct Maryland-compliant invoice:
- Water heater (materials): $900
- Sales tax (6%): $54
- Labor: $300
- Total: $1,254
If the plumber charges tax on the full $1,200 ($72 tax), that’s $18 too much—and not compliant with state law.
FAQ Section
Q1: Do I pay sales tax if I buy plumbing parts myself and hire a plumber just for labor?
A: No. If you purchase the faucet, pipe, or fixture yourself (e.g., from Home Depot), you’ll pay tax at the store. The plumber’s labor remains non-taxable, and they should not add any additional tax.
Q2: Are plumbing inspections or diagnostic fees taxable?
A: No. Diagnostic visits, camera inspections, or estimates are considered services and are not subject to sales tax in Maryland.
Q3: What if my plumber is from out of state but works in Maryland?
A: If they perform work in Maryland, they must comply with Maryland tax law. That includes collecting 6% sales tax on any materials they provide.
Q4: Can I get a refund if I was overcharged tax?
A: Yes. First, contact the plumber for a corrected invoice. If unresolved, file a complaint with the Maryland Comptroller’s Office.
Q5: Are commercial plumbing jobs taxed differently than residential?
A: No. Maryland’s tax rules apply equally to residential and commercial properties when it comes to labor vs. materials.
Q6: Does a plumbing warranty or service contract include tax?
A: If the contract includes future parts, tax applies when those parts are delivered. Labor under warranty remains non-taxable.
Conclusion
So—does a plumber charge tax on work performed in Maryland? Only on the materials, never on the labor. Understanding this simple rule can save you money, prevent billing disputes, and ensure you’re working with a compliant, professional contractor.
If you found this guide helpful, share it with friends or family in Maryland who might be planning a home repair! A quick social share could help someone avoid an unexpected (and illegal) tax charge.
And remember: Always ask for an itemized invoice. It’s your best defense against overpayment—and your key to stress-free home maintenance.
Stay informed. Stay compliant. And never overpay again.
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