Electronic Tax Payments

Businesses may use electronic funds transfers (EFT) to file and pay Maryland income tax withholding, sales and use, motor fuel, and corporate income taxes. Electronic payments are voluntary unless the payment is for $10,000 or more, in which case payments must be made electronically.

Electronic funds transfers eliminate the need to write checks and mail paper documents, while avoiding postage costs and the potential for lost mail and penalties for late returns. To register for electronic funds transfer, complete Form EFT, Authorization Agreement for Electronic Funds Transfer and mail it to:

EFT Program
P.O. Box 1509
Annapolis, MD 21404-1509

You can also fax the completed form to us at 410-260-6214.

ACH Credit Option

To use the Automated Clearinghouse (ACH) credit option, you must first contact your bank to determine if your bank offers ACH origination. Your bank must complete Section C of Form EFT, Authorization Agreement for Electronic Funds Transfer to verify that your bank can conform to these standards. You must also complete the contact person information in Section A.

As the most basic form of ACH payment, the CCD (Concentration or Disbursement) format can be processed by all ACH-member banks. ACH credit transactions require you to enter all payment-related data in the ACH standard CCD+ format and XTP addenda record. You will initiate the credit transaction through your bank to the state's bank account for the amount of your tax payment. The costs of the ACH credit transactions are incurred by you and you are responsible for your proof of payment.

ACH Debit Option

The ACH debit option allows you to make a payment using a toll-free 800 number and a password. The payment amount you specify will be transferred to the state's bank account on a specific date. You can also edit or correct your data before completing the transaction. After completing the call, you will be provided with a verification code as your proof of payment. Your bank may charge a nominal fee for processing the debit.

To use the ACH Debit option, your bank must complete Section B of Form EFT, Authorization Agreement for Electronic Funds Transfer.

For more information about the EFT program, call 410-260-7601, Monday - Friday, 8:00 a.m. - 5:00 p.m. EDT

bFile

The easiest way to make an electronic tax payment for employer withholding and sales and use taxes is by using bFile, our free service for businesses to schedule and file electronic payments online. Businesses that use bFile satisfy their requirement to file electronically while enjoying the flexibility and convenience of scheduling payments up to the due date. bFiler users also receive confirmation that tax returns have been processed.