Maryland doesn't write its own 1099-K threshold into law. It borrows one from a federal statute that recently changed.

The Bottom Line for Maryland eBay Sellers

Maryland's 1099-K reporting rule is unusual among the states in this cluster because it isn't a fixed figure the legislature wrote down. It's a cross-reference to a general federal information-return threshold, and that federal figure was raised by a 2025 tax law. Maryland's own number moved as a result, automatically, without the state legislature having to act. An LLC doesn't change that reporting mechanic, but it does mean whoever handles your books needs to be working from the current figure, not one copied from an older article.

Maryland's statute sets its 1099-K reporting duty by pointing directly at a specific federal filing-threshold provision rather than spelling out a dollar amount of its own. That federal provision was amended by a 2025 federal tax act, which raised its figure for payments made after the end of that year. Because Maryland's own law is written as "whatever that federal section says," the change flowed through to Maryland automatically. No Maryland legislative action was needed, and none happened. A seller, bookkeeper, or old blog post citing Maryland's threshold from before that federal change is citing a number Maryland no longer uses.

If every one of your sales into Maryland runs through eBay, you do not need your own Maryland sales-tax registration — eBay is the one collecting and remitting. We could not confirm whether Maryland counts marketplace-facilitated sales toward its remote-seller threshold. Maryland sets its own 1099-K threshold at $2,000, well below the federal $20,000 and 200 transactions — so a Maryland seller can get a 1099-K on volume that would trigger nothing federally.

eBay Collects Maryland Sales Tax. What Is Still Yours?

If every one of your sales into Maryland runs through eBay, you do not need your own Maryland sales-tax registration — eBay is the one collecting and remitting.

Separately from the reporting question, Maryland's Comptroller answers the registration question about as directly as any state in this cluster: a marketplace seller whose sales all run through a marketplace facilitator doesn't have to register for a Maryland sales and use tax account or file returns. That answer flips the moment you also make direct sales, a marketplace seller who sells both through eBay and independently is required to register as an out-of-state seller for the direct portion, even though the marketplace portion remains covered by the facilitator. Keep the two channels distinguishable in your own records so you can show which sales fall on which side of that line.

Do Your eBay Sales Count Toward Maryland's Nexus Test?

We could not confirm whether Maryland counts marketplace-facilitated sales toward its remote-seller threshold.

This page can't confirm how Maryland treats marketplace-facilitated sales when a seller calculates their own economic-nexus threshold, the regulation setting Maryland's dollar-and-transaction test doesn't itself address whether facilitated sales are included or excluded from an individual seller's count, and no Maryland statute or bulletin resolving that specific point was located during research. Rather than guess, the safer approach is to track your Maryland-bound sales across every channel and confirm directly with the Comptroller's office how your specific situation should be counted, particularly if you're close to Maryland's threshold on direct sales alone.

Maryland's 1099-K Threshold

Maryland sets its own 1099-K threshold at $2,000, well below the federal $20,000 and 200 transactions — so a Maryland seller can get a 1099-K on volume that would trigger nothing federally.

Maryland's figure isn't fixed by Maryland law. It tracks a federal reporting threshold that Congress indexes for inflation starting in 2027, so this number can move. It's worth re-checking for a later tax year rather than assuming it stays the same.

The mechanic worth understanding here is that Maryland's 1099-K statute doesn't set its own number. It says the reporting duty applies once payments meet whatever a specific federal provision currently requires, and that federal provision's figure changed for payments made after the end of 2025. The federal section Maryland cross-references is also scheduled to be periodically adjusted going forward, meaning Maryland's figure isn't a one-time change but a number that can move again without any new Maryland law. Whatever figure is currently in effect when a 1099-K reaches you, remember it reports gross payment volume, not your actual tax liability, subtract fees, refunds, and cost of goods before treating the number on the form as income.

Buying Inventory to Resell in Maryland

Maryland will not accept an out-of-state resale certificate, buying inventory tax-free here means holding a Maryland permit of your own.

Code of Maryland Regulations (COMAR) 03.06.01.14.B requires a resale certificate to state 'the Maryland sales and use tax registration number of the buyer.' Section H is explicit: 'Numbers issued by other jurisdictions... are not valid on a resale certificate.' This CONFIRMS the commonly-reported position that Maryland refuses out-of-state resale certificates for ordinary merchandise. Narrow exception: Section D allows an out-of-state vendor's home-state registration number (with a copy of that state's registration license) ONLY for purchases of antiques or 'used collectibles' (items ≥70 years old, or previously-retail items with organized collector interest), not for general eBay resale inventory.

Maryland's resale-certificate regulation is unambiguous and unfavorable to out-of-state paperwork: a certificate must carry the buyer's own Maryland sales and use tax registration number, and the regulation explicitly states that registration numbers issued by other states aren't valid on a Maryland resale certificate. There's one narrow carve-out for antiques and older collectibles specifically, which lets an out-of-state registration substitute for that category alone, not for ordinary resale inventory. A Maryland wholesaler will expect your Maryland number for anything outside that narrow exception. On used-goods resale generally, Maryland's statewide licensing statute is limited to precious-metal objects and pawn transactions; it doesn't reach an ordinary reseller of clothing, books, or general secondhand merchandise, and no broader county or city licensing pattern was found in Maryland's major jurisdictions either.

Maryland has no statewide second-hand dealer licence reaching general resale. Maryland's statewide licensing statute in this space, Business Regulation Article Title 12 ('Secondhand Precious Metal Objects Dealers and Pawnbrokers,' administered by the Department of Labor and implemented at COMAR 09.25), is narrowly scoped: a 'dealer' is defined as one who acquires or trades commercially 'in secondhand precious metal objects,' and 'precious metal object' is limited to items of gold, iridium, palladium, platinum, or silver (or attached gems/pearls, or items ≥25% precious metal by weight) plus pawn transactions. It does not reach general resale of ordinary used goods (clothing, furniture, electronics, books, etc.). A search for general 'secondhand dealer' ordinances in Maryland's major jurisdictions (Baltimore City, Montgomery County) returned no results, providing some (non-exhaustive) evidence that Maryland does not have a widespread pattern of separate local general-secondhand-dealer licensing either.

Setting Up to Sell on eBay from Maryland

1. Confirm this year's actual 1099-K figure before assuming an old one

   Maryland's threshold tracks a federal provision that recently changed and is scheduled to adjust again. Check the current figure directly rather than trusting anything written before the change.

2. Form the LLC before your Maryland volume grows

   The entity protects you from liability regardless of which reporting figure applies in a given year. File it while your business is still small rather than retrofitting a structure later.

3. Register only if you add a direct Maryland sales channel

   Maryland's marketplace-only exemption is clean, but it flips the moment you sell directly as well. Track that boundary carefully in your own records.

4. Get a Maryland registration number before buying wholesale here

   Maryland's own regulation refuses out-of-state registration numbers on a resale certificate outside the narrow antiques exception. Apply directly rather than assuming your home-state paperwork will work.

5. Revisit the nexus question with the Comptroller if you're near Maryland's threshold

   This page couldn't confirm how marketplace sales factor into your own nexus calculation. Ask directly if your direct Maryland sales are approaching the state's threshold on their own.

What We Could Not Confirm for Maryland

These pages only state what a primary source establishes. For Maryland we could not confirm the following, so this page does not answer it:

• whether marketplace sales count toward the economic-nexus threshold

Who to Ask in Maryland

The Comptroller of Maryland's business tax services division handles sales-tax registration, resale certificates, and the marketplace-seller exemption discussed above, its published Sales and Use Tax Alert answering the marketplace-seller registration question directly is worth reading in full. The Maryland Department of Assessments and Taxation is the office that actually forms and maintains your LLC, separately from the Comptroller. For the 1099-K threshold specifically, confirm the current figure with the Comptroller or a tax professional each year rather than relying on any fixed number, since it's tied to a federal provision that moves.

Sources

• https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/alerts/SUT_Tax_Alert_Sept2019.pdf
• https://regs.maryland.gov/us/md/exec/comar/03.06.01.33
• https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=11-101&enactments=false
• https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg&section=11-701&enactments=false
• https://mgaleg.maryland.gov/2026RS/Statute_Web/gtg/10-825.pdf
• https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section6041&num=0&edition=prelim
• https://www.irs.gov/pub/irs-pdf/i1099mec.pdf
• https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/reporting-1099-instructions.pdf
• https://regs.maryland.gov/us/md/exec/comar/03.06.01.14
• https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gbr&section=12-101&enactments=false
• https://www.marylandcomptroller.gov/businesses/tax-services.html
• https://www.irs.gov/instructions/i1099k

Federal 1099-K threshold: IRC § 6050W(e), as amended by § 70432(a) of the One, Big, Beautiful Bill Act (P.L. 119-21, July 4, 2025). A third-party settlement organization such as eBay must file Form 1099-K only if BOTH tests are met for the calendar year: gross payments exceed $20,000 AND the number of transactions exceeds 200. These are the figures for tax year 2026. There is no forward phase-in: § 70432(a) takes effect "as if included in section 9674 of the American Rescue Plan Act," so the same $20,000 / 200 figures apply retroactively to calendar years after 2021 (tax years 2022 through 2026 alike). The $600 threshold enacted by ARPA § 9674 (P.L. 117-2) was repealed before it operated, and the IRS transition-relief thresholds previously announced for 2024 and 2025 are superseded. A platform may issue a 1099-K below these figures, and a state may set a lower TPSO threshold, in which case a seller can receive a 1099-K without meeting the federal test.. Verified 2026-08-08.