Maryland’s Digital Advertising Tax Might Cost Businesses More than They Realize

This is a featured announcement for Radio Free Hub City’s advertising rates

Maryland’s unique digital advertising gross revenues tax continues to impact the state’s business landscape, while fortunately smaller entities, including Radio Free Hub City, remain exempt. The tax, which applies a sliding scale of 2% to 10% on gross revenues derived from digital advertising services, was enacted despite a veto during Governor Hogan’s administration, with the legislature overriding the decision. More recently, Governor Wes Moore has signed the state’s Fiscal Year 2026 budget, introducing further tax adjustments across various sectors, including high earners, technology services, sports betting, and motor vehicles. These increased tax burdens, especially the technology services and motor vehicles, can really have an impact on local small business as the taxes are passed on to the purchasers.

The digital advertising tax operates on a tiered system, meaning the percentage applied increases with a company’s gross revenue within the state. For instance, companies generating less than $100 million in gross revenue in Maryland face a 2% tax. This rate escalates progressively, reaching the maximum of 10% for companies with over $1 billion in gross revenues within the state. Critically, large technology corporations such as social media companies subject to this tax are often passing on the additional cost to consumers and businesses through increased advertising prices. However, Maryland law has prohibited the disclosure of this specific tax pass-through, until the recent appeals court ruling, making it difficult for consumers and businesses to identify the added expense. Even then, the tech companies still might not disclose this information, because they don’t want businesses to realize they’re getting less value for their ad dollars.

Radio Free Hub City, as a small business, is not subject to this digital advertising tax. To support other local businesses and acknowledge the financial pressures that such taxes can create, we are now offering a special promotion. For the next 90 days, businesses advertising with Radio Free Hub City can receive half-price advertising rates* by mentioning the coupon code “TAXISTHEFT”. And if you lock in at this rate, you get to keep it for as long as you advertise with us. This initiative aims to provide relief and encourage advertising among smaller enterprises that are not burdened by the digital services tax.

For businesses, understanding their tax obligations and exploring exemptions or cost-saving measures remains crucial. For consumers, awareness of how these taxes might be indirectly factored into the cost of services or products can be beneficial in navigating economic changes within the state.

Article by Ken Buckler, President of Radio Free Hub City.

*Offer expires November 20, 2025, and cannot be combined with any other discount. Void where prohibited.

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